In this FDD Talk 2016 post, you’ll learn the following:
- Section I – Background information on the Christian Brothers Automotive franchise opportunity, including relevant news updates
- Section II – Estimated initial investment for a Christian Brothers Automotive franchise, based on Item 7 of the company’s 2016 FDD
- Section III – Presentation and analysis of Christian Brothers Automotive’s financial performance representations, based on Item 19 of the company’s 2016 FDD, including information on the:
- 2015 average gross sales for the 134 CBA franchisee-owned stores that were open for the entire year of 2015, based upon the following indicated sales ranges: greater than $2.25M, $2M to $2.25M, $1.75M to $2M, $1.5M to $1.75M, $1.25M to $1.5M, $1M to $1.25M, and less than $1M
- average gross sales, cost of goods sold, gross profit, general and administrative expenses, net operating income, and total owner benefit for the 1st year, 2nd year, 3rd year, 4th year, and 5th+ year CBA franchisee-owned stores that were open for the entire year of 2015
- 2015 low, high, and average total owner benefit for the top 20% total owner benefit performers (27 stores), based on the 134 CBA franchisee-owned stores that were open for the entire year of 2015
- 2015 low, high, and average shop labor rate for the 134 CBA franchisee-owned stores that were open for the entire year of 2015
- 2015 low, high, and average annual car count for the 134 CBA franchisee-owned stores that were open for the entire year of 2015
Section I – Background Information
Brothers in Christ Start Successful Auto Repair Shop
The first Christian Brothers Automotive location was opened in Houston, Texas by Mark Carr and his business partner. Carr’s business partner was a fellow member at his church who was looking for help opening an automotive repair shop. Carr saw this as a good business opportunity and together, the brothers in Christ founded the Christian Brothers Automotive Corporation and opened the first location in 1982.
Carr and his partner owned and operated the first Christian Brothers location together for several years. Eventually, Carr bought his partner’s share of the business and became the sole owner of the company.
Over the next decade, the first Christian Brothers location continued to thrive. In the early 90s, one of Carr’s friends became interested in owning and operating his own auto repair shop. Carr helped his friend get started and the second Christian Brothers location opened in 1996. In less than one year, the second location surpassed the first location’s annual gross revenue. Encouraged by the success of the second location, Carr officially began franchising in late 1996.
Christian Brothers Automotive continued to grow and by the end of 2001, there were nearly 20 locations. In 2008, the company announced plans to have at least 200 locations opened by the end of 2017. Christian Brothers currently has over 150 locations throughout the United States.
Celebrating 20 Years of Franchising
In October 2016, Christian Brothers Automotive celebrated 20 years of franchising. CEO Mark Carr says that Christian Brothers’ secret to success is that each location strives to make its customers happy, which makes them more likely to return. In the 20 years since the company started franchising, it has never closed any of its locations.
According to Carr, the company’s business model ensures that franchise owners have the support and resources they need to thrive even if they’ve never worked in the automotive industry before.
Another factor driving Christian Brothers’ success is that each franchisee strives to create a great workplace. Each Christian Brothers location is never open on the weekends. Additionally, each franchisee offers training to top employees so they may become managers or even franchise owners in the future.
CBA Names Kukui Corporation as Preferred Customer Relationship Management Vendor
In late 2016, Christian Brothers named Kukui Corporation as its preferred Customer Relationship Management vendor. The automotive chain will use Kukui for all customer communications and emails to its franchisees. Currently, there are 100 Christian Brothers locations that already use Kukui’s marketing tools.
Christian Brothers chose Kukui because Kukui’s software allows each shop to customize its email offers and communications based on its customers’ needs and buying habits. Kukui also provides a marketing coordinator, who will offer advice to any franchisee about how to improve lead generation and retention through email marketing.
Ranking in the Top 300 of Entrepreneur’s Franchise 500
In the last decade, Christian Brothers Automotive has ranked on Entrepreneur’s annual Franchise 500 list a handful of times. The auto repair franchise did not rank on the list for 2017. Christian Brothers did earn spot No. 266 in 2016. The company’s highest rank was No. 226 in 2013 and its lowest was No. 267 in 2014.
Section II – Estimated Costs
- Please click here for detailed estimates of Christian Brothers Automotive franchise costs, based on Item 7 of the company’s 2016 FDD (updated).