Christian Brothers Automotive Franchise Costs, Fees & FDD

Year Business Began: 1982

Franchising Since: 1996

Headquarters: Houston, Texas

Estimated Number of Units: 305

Franchise Description: The franchisor is Christian Brothers Automotive Corporation. Franchisees operate a business for repairing and servicing automotive vehicles.
Training Overview: The principal operator of the franchise must attend and successfully complete the management training courses to the franchisor’s satisfaction. This training will be conducted through an online training portal, at the franchisor’s offices in Houston, Texas, and field-training at a location (or locations) it designates. In addition, the principal operator’s service manager must attend and successfully complete the management training course held at the franchisor’s offices in Houston, Texas. The new principal operator will train under a certified field trainer (CFT) at the retail location operated by the CFT for two weeks either before or after completing both the online courses and the two weeks training at the franchisor’s offices in Houston, Texas. The franchisor may periodically offer additional training programs to franchisees and their service manager.

Territory Granted: In conjunction with the establishment of the franchise franchisees will be granted an exclusive geographic area, consisting of an identifiable geographic territory, which will be designated as their “territory.” The approximate size of a territory will be similar to the area that is in a circle with an approximate three-mile radius around the location. The exact territory size will not be a three-mile radius, and instead will be set in an exhibit to the Franchise Agreement. The franchisor will not operate or grant franchises for a similar or competitive business within the area. The square footage within the franchise territory may vary significantly in size and shape depending on a number of different variables. Except when advertising cooperatively with appropriate franchisees, neither franchisees nor the franchisor can advertise or solicit customers within another franchisee’s territory.

Obligations and Restrictions: The franchisor requires that the “principal operator” or the franchisee personally supervise the franchised business. In addition, the business must also be supervised by a service manager. The service manager cannot have an interest in or business relationship with any of the franchisor’s competitors. The franchisor requires franchisees to offer and sell only those products and services that it has approved. Franchisees must offer all products and services that the franchisor designates as required for all of its franchisees. Following the first year of operation of the franchise, or in the case of a transfer of the franchise, following the first year of operation by the transferee, minimum performance requirements must be maintained.

Term of Agreement and Renewal: The length of the initial franchise term is 15 years, subject to compliance. Franchisees have three five-year renewal options, subject to terms.

Financial Assistance: The franchisor may offer unsecured financing for loans for remodels and renovations required by the Franchise Agreement. The franchisor may determine in its sole discretion whether to approve or disapprove any loan requests. Except for this financing, the franchisor does not offer direct or indirect financing. The franchisor does not guarantee a franchisee’s notes, leases or other obligations. The franchisor does offer a discount of 10% of the franchise fee for current or former members of the United States Armed Forces and have been or will be honorably discharged.

Estimated Initial Investment

Name of Fee	Low	High
Initial Franchise Fee	$135,000	$135,000
Real Estate and Improvements	$0 at startup. Monthly thereafter.
Equipment and Software	$255,000	$280,000
Shuttle Vehicle	$30,000	$50,000
Shuttle Vehicle Wrap	$1,750	$3,400
Inventory	$11,000	$12,000
Security Deposits	$5,000	$5,000
Signs	$0	$0
Insurance & Business License	$15,000	$60,000
Marketing/Advertising (first year)	$35,000	$40,000
New Store Opening Marketing/Advertising	$20,000	$30,000
Pre-Opening Training Travel/Salary	$7,500	$10,000
Other Payments	$5,000	$15,000
Additional Funds (initial 3 months)	$30,000	$40,000
ESTIMATED TOTAL	$550,250	$680,400

 
Other Fees

Type of Fee	Amount
Continuing Royalty Fees	50% of monthly “split profits” during the initial franchise term and during all extensions and renewals.
Additional Training and Support Fees	Established by the franchisor. Fees will be uniform for all franchisees.
Administrative and Accounting Fees	Currently $550 per month. The franchisor offers additional tax filing services for set fees.
Operating Systems & Internet Failover	Approximately $475 per month plus data overages, and subject to change.
Marketing Fee – National Program	Established by the franchisor. Franchisees must pay their prorated portion of the costs of the national marketing program, subject to a “maximum annual cost” equal to 3% of the average total annual revenue for the previous calendar year (January 1 through December 31) of all franchisees whose franchised businesses have been in operation for at least 12 months as of December 31 of the previous year.
Marketing Fee – Regional Programs	Established by the franchisor. Franchisees must pay their prorated portion of the costs of any regional marketing programs, subject to a maximum annual cost.
Transfer Fees	$30,000
Transaction Fee	The greater of 7% of the gross value of the business or $50,000.
Lease Payments	Approximately $22,000 to $36,000 base rent per month, plus triple net costs.
IT Support Fee	Currently, $200 per month for IT support services.
Software and Related Annual Maintenance/License Fees	Annual maintenance or license fees will apply for those programs and for additional required software programs. Currently, annual maintenance or license fees for these programs are approximately $10,500 plus data overages and will vary depending on the underlying vendors’ current prices.
Loan Administrative Fee	$2,500 to $4,000
Liquidated Damages	Payable if the franchisor terminates the Franchise Agreement for violation of confidentiality or non-compete obligations. An amount equal to the average of the monthly royalty fees paid (or payable) over the past 12 months times the lesser of 48 months or the number of full calendar months remaining in the term of the Franchise Agreement at the time of termination.
Step-In Rights Management Fee	$5,000 per month, plus reasonable compensation and expenses for the franchisor’s representatives (including an interim manager), plus other reasonable costs and expenses incurred in return for managing the franchised business.
Renewal Fee	10% of the initial franchise fee paid for the most recently sold franchise at the time of renewal.

The above information has been compiled from the FDD of Christian Brothers Automotive. Year of FDD: 2025.
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