What were the total operating costs and expenses for Christian Brothers Automotive in 2023?
Christian_Brothers_Automotive Franchise · 2025 FDDAnswer from 2025 FDD Document
lders' equity | $ 663,061,823 | $ 576,351,339 |
Consolidated Statements of Income Years Ended December 31, 2023 and 2022
| 2023 | 2022 | |
|---|---|---|
| Revenues | $ 137,196,643 | $ 122,309,502 |
| Operating Costs and Expenses | ||
| Cost of revenues | 42,731,504 | 40,601,283 |
| Selling, general and administrative expenses | 50,507,014 | 41,565,152 |
| Compensation expense associated with ESOP | 10,121,713 | 14,206,798 |
Source: Item 23 — RECEIPTS (FDD pages 76–372)
What This Means (2025 FDD)
According to Christian Brothers Automotive's 2025 Franchise Disclosure Document, the total operating costs and expenses for 2023 were $103,360,231. This figure is derived from the franchisor's consolidated financial statements, which include the costs of revenues, selling, general, and administrative expenses, and compensation expenses associated with the Employee Stock Ownership Plan (ESOP). Understanding these costs is crucial for potential franchisees as it provides insight into the financial health and operational efficiency of Christian Brothers Automotive.
The major components contributing to the total operating costs and expenses include the cost of revenues, which amounted to $42,731,504, selling, general, and administrative expenses totaling $50,507,014, and compensation expenses related to the ESOP, which reached $10,121,713. These figures highlight the significant investments Christian Brothers Automotive makes in its operations, marketing, and employee compensation. Prospective franchisees should analyze these expenses in relation to the reported revenues to assess the profitability and sustainability of the franchise model.
For comparison, the total operating costs and expenses in 2022 were $96,373,233, indicating an increase in operating costs for Christian Brothers Automotive in 2023. This increase could be attributed to various factors such as expansion, increased marketing efforts, or changes in compensation structures. A detailed review of these financial statements, along with discussions with existing franchisees, can provide a clearer understanding of the factors driving these costs and their potential impact on a franchisee's bottom line. It's important for potential franchisees to consider these trends when evaluating the financial viability of a Christian Brothers Automotive franchise.