In this FDD Talk 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 2020 FDD
- Section III – Initial franchise fee, royalty fee, marketing fee, and other fees for a Christian Brothers Automotive franchise, based on Items 5 and 6 of the company’s 2020 FDD
- Section IV – Number of franchised and company-owned Christian Brothers Automotive outlets at the start of the year and the end of the year for 2017, 2018, and 2019, based on Item 20 of the company’s 2020 FDD
- Section V – Presentation and analysis of Christian Brothers Automotive’s financial performance representations, based on Item 19 of the company’s 2020 FDD, including information on the:
- 2019 average gross sales for the 192 CBA franchisee-owned stores that were open for the entire year of 2019, based upon the following indicated sales ranges: greater than $3M, $2.5M to $3M, $2.25M to $2.5M, $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 2019
- 2019 average, median, low, and high total owner benefit for the top 20% (38 stores) and bottom 20% (38 stores) total owner benefit performers, based on the 192 CBA franchisee-owned stores that were open for the entire year of 2019
- 2019 average, median, low, and high shop labor rate for the 192 CBA franchisee-owned stores that were open for the entire year of 2019
- 2019 average, median, low, and high annual car count for the 192 CBA franchisee-owned stores that were open for the entire year of 2019
Section I – Background Information
19 Things You Need to Know About the Christian Brothers Automotive Franchise
Extends Customer Warranty to Three Years or 36,000 Miles
1. At the end of December 2019, Christian Brothers Automotive announced an extended warranty program that upgrades the duration of coverage for customers on car repairs and services completed at all Christian Brothers Automotive locations nationwide. Effective January 1, 2020, the warranty covers guests for up to three years or 36,000 miles (whichever benefits each customer the most – meaning if a guest puts 36,000 miles on their vehicle in just 2 years, they’re covered until the end of the third year; on the other hand, if it takes them 4 years to put 36,000 miles on their vehicle, they’re covered until they hit 36,000 miles).
2. Built to benefit the customer, the Nice Difference warranty extension provides an additional 12,000 miles and one year of support and protection to Christian Brothers Automotive guests, but still won’t expire until the later of the two limits. The warranty is provided at all of Christian Brothers Automotive’s 200+ locations nationwide and is automatically applied to qualifying repairs or services at no additional cost to the customer. If a customer finds themselves in need of a repair or service under warranty, all they have to do is bring their vehicle and the original invoice back to the shop and Christian Brothers Automotive will take it from there.
Launches Car Donation Program for Single Moms
3. In early January 2020, Christian Brothers Automotive Foundation, the corporate foundation started by Christian Brothers Automotive, announced the launch of a new philanthropic endeavor that provides single moms in need of reliable transportation with vehicles. The new 501(c)3 organization is called The Hub Garage.
4. The program accepts vehicle donations that will be repaired by Christian Brothers Automotive service technicians and given to single moms in need across the greater Houston area. By equipping recipients with means of reliable transportation, The Hub Garage’s mission is to give single mothers both hope and independence by improving mobility and accessibility to jobs, school, and more.
5. Jonathan Carr, president of Christian Brothers Automotive Foundation, said, “There are around 24,000 single moms living below the poverty level in Houston. We want to leverage what we’re already good at to help people, and if we can lower that number by even a few families, we’ll have made a huge step in the right direction.”
6. The Hub Garage works with community partners like the Ace Scholarship, which provides local kids a chance to find better rates and scholarship opportunities into competitive private schools in Houston. As a referral source, Ace Scholarship helps The Hub Garage find single moms in need. The Hub Garage plans to extend its community connections in the future by working with similar partners to help identify parents who may benefit from its mission.
7. “We want to partner with excellent nonprofits, and Ace Scholarship exemplifies that commitment,” added Carr. “In the future, we want to expand this to all 27 of our major markets. We want to grow the program’s impact as fast as we can get cars donated.”
8. In 2020, the organization’s donation goal was 1,500 vehicles, which would provide over 1,000 single mothers with working vehicles. Those who wish to donate can sign up to donate their car at The Hub Garage’s website.
New Location
9. While many businesses are struggling to stay open as the ongoing COVID-19 pandemic has crippled the economy, Christian Brothers Automotive continues to open new locations. One of the brand’s newest locations opened in late September 2020 in Mansfield, Texas. The new shop is located next to Vernon Newsom Stadium and across from Kroger Marketplace.
10. Under the ownership of local residents Mike and Shayna Ortman, Christian Brothers Automotive aims to not only provide repair and maintenance services for drivers in Mansfield, but to be a trusted source for vehicle care with skilled technicians who provide service centered on respect, transparency, and integrity.
11. “We decided to open Christian Brothers Automotive in Mansfield because we wanted to run a business and be part of a community that we could demonstrate our faith in,” said Mike Ortman, local owner. “We know that the Mansfield community will see our work is reflective of our values – integrity, hard work, kindness and honesty. We look forward to building their trust through the way we do business – the moral way.”
12. Prior to opening Christian Brothers Automotive in Mansfield, Mike Ortman worked in medical device sales and opened his own medical device business, Biostature, in 2015. His entrepreneurial calling continued, leading him to open a ground shipping business that expanded into mechanic business. With plenty of business ownership experience under his belt, Mike and Shayna decided to combine his experience with their interest in running a faith-based business and open a Christian Brothers Automotive franchise.
13. Donnie Carr, president of Christian Brothers Automotive, added, “Christian Brothers Automotive has assisted countless individuals and families with their auto service, and the Ortmans will offer drivers in Mansfield the chance to get back on the road as conveniently as possible. Our goal is to provide guests with reliable transportation, and we have faith in each location to meet their guests with honest and dependable service.”
14. Joining more than 225 Christian Brothers Automotive locations across the nation, the Mansfield shop follows the guiding principle: “Love your neighbor as yourself.” Built on the idea that having your car serviced should be easy, Christian Brothers Automotive offers free shuttle service, educational estimates, and complimentary courtesy inspections for guests.
15. From simple upkeep such as an oil change to more involved repairs and engine diagnostics, Christian Brothers Automotive addresses automotive issues as soon as they’re found, that could otherwise require expensive repair or replacement down the line. Year after year, Christian Brothers Automotive Mansfield will keep cars on the road running smoothly and reliably.
Company History
16. Christian Brothers Automotive was founded in 1982 by Mark Carr and his business partner, who was a friend from church, in Mission Bend, Texas. Carr was a graphic arts salesman at the time, but was looking for something else. After praying and asking God to provide him with a new business opportunity, a friend from his church, who was an automotive technician, proposed the idea to start their own automotive repair shop. Carr and his partner named their new business Christian Brothers Automotive because they were two brothers who had come together through Christ.
17. Initially, Carr was an offsite owner with his partner running the daily operations. After a few years, Carr decided to buy out his partner and became a full-time owner and operator. The business thrived under Carr’s leadership and in 1994, friends began asking Carr if they could open their own auto shop. Carr spent the next two years helping his friends start their businesses and he realized that he should start franchising Christian Brothers Automotive.
18. Over the next few decades, Christian Brothers Automotive expanded around the Southwestern, lower Midwestern, and Southern United States. In 2019, Christian Brothers Automotive reached its goal of opening 200 locations.
Entrepreneur’s Franchise 500
19. Christian Brothers Automotive ranked No. 261 on Entrepreneur’s 2020 Franchise 500 list.
Section II – Estimated Costs
- Please click here for detailed estimates of Christian Brothers Automotive franchise costs, based on Item 7 of the company’s 2020 FDD.
Section III – Initial Franchise Fee, Royalty Fee, Marketing Fee, and Other Fees
- Please click here for detailed information on Christian Brothers Automotive’s initial franchise fee, royalty fee, marketing fee, and other fees, based on Items 5 and 6 of the company’s 2020 FDD.
Section IV – Number of Franchised and Company-Owned Outlets
Franchised
2017
- Outlets at the Start of the Year: 157
- Outlets at the End of the Year: 172
- Net Change: +15
2018
- Outlets at the Start of the Year: 172
- Outlets at the End of the Year: 193
- Net Change: +21
2019
- Outlets at the Start of the Year: 193
- Outlets at the End of the Year: 210
- Net Change: +17
Company-Owned
2017
- Outlets at the Start of the Year: 1
- Outlets at the End of the Year: 1
- Net Change: 0
2018
- Outlets at the Start of the Year: 1
- Outlets at the End of the Year: 1
- Net Change: 0
2019
- Outlets at the Start of the Year: 1
- Outlets at the End of the Year: 3
- Net Change: +2
Section V – Financial Performance Representations (Item 19, 2020 FDD) and Analysis
- The following tables and figures relate to the 192 CBA stores operated by franchisees that were open and operating for the entire 2019 year. This does not include the 19 CBA stores that were opened in 2019.
Part 1 – Average Gross Sales, by Sales Range
- Set forth in this Part 1 are the average Gross Sales for the year ending December 31, 2019 for the 192 CBA Stores that are franchisee-owned and that were open for the entire year of 2019, based upon the below indicated sales ranges.
- This table includes all Stores that were open before January 1, 2019, and does not include any of the 19 Stores that were opened in 2019.
Sales Range: Greater Than $3M
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