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The Real Christian Brothers Automotive Franchise Cost
Although automobile sales declined from 2017 to 2020, the staggering number of almost 64 million in automobile sales is proof that the automotive industry is still a booming business. People need transportation to get from point A to B — whether for personal or business errands. That shows that an automotive-related company can be a lucrative one if you offer stellar products and services. And one name that has 38 years of traction in this niche is Christian Brothers Automotive. If you’re interested in getting a franchise from this company, read on to know more about the training, conditions, and the Christian Brothers Automotive franchise cost.
Company Overview
The Christian Brothers Automotive is a distinct automobile business that is built on the foundation of exquisite service. The company aims to offer a unique automotive experience to its customers through the Nice Difference vision. The Christian Brothers Automotive Nice Difference system entails:
- A comfortable and clean waiting area
- Complimentary beverages
- Complimentary courtesy inspection to all guests
- Free WiFi
- Access to shuttle service
- Nice Difference warranty
The founder Mark Carr wanted to eliminate all the stereotypes about automobile service companies. Some would think that having your car serviced would mean going through an uneasy and hassle-filled process. But Mark wanted to change that.
After attending a Sunday school through Spring Branch Bible Church, an automotive technician came up to him. The technician asked him for help to open an automotive repair shop, and the rest, they say, is history.
And if you’re wondering why they named the company Christian Brothers Automotive, it’s because both founders realized they were both brothers in Christ. After launching in 1982, Mark was convinced to buy out his co-founder’s share and became the sole business owner.
Since launching, Mark still runs the business with two essential value propositions:
- Making sure that the business owner is on-site to build customer relationships
- Serving the customers the way the owner wants to be served
Due to these value propositions, the company flourished as more people were interested in getting a franchise from them. The company started franchising in 1996 and now has over 200 locations across America.
Training Details
Christian Brothers Automotive Corporation is the franchisor. Before operating the Christian Brothers Automotive franchise, the franchisee must complete training. Here is the training overview:
- The franchisee or principal operator of the franchise business must attend and complete the management training program according to the franchisor’s satisfaction
- The training will be held online via the Christian Brothers Automotive training portal in the Houston, Texas office
- Aside from the online training program, the franchisee must also attend field training at a designated location
- The franchisee must assign a manager to attend and complete the field training at the office in Houston, Texas, as well
- The franchisor may require the franchisee and service managers to participate in additional training regularly
- The franchisee may be required to attend on-site training during the initial weeks the franchise store is open
Franchise Territory
The franchise store must adhere to the Franchise Agreement territory requirement as set by the franchisor. The franchisor grants franchisees an exclusive geographic area. This will entail a geographic territory, referred to as “territory.”
The territory size should be the same as the area in a circle, with around a three-mile radius surrounding the location. However, the exact size of the territory doesn’t have to be a three-mile radius.
The franchisor will not grant other franchisees to operate a Christian Brothers Automotive franchise within the exclusive territory. Finally, the franchisor and franchisee should not promote the franchise in another franchisee’s exclusive territory.
Franchise Obligations and Conditions
A principal operator and service manager must supervise the Christian Brothers Automotive franchise business. Moreover, the franchisee must only sell products and offer services that the franchisor approves.
Franchise Term and Renewal
The initial franchise term is 15 years, and the franchisee is eligible to renew three five-year opportunities.
Franchise Financial Aid
The franchisor doesn’t provide indirect or direct financing to franchisees. However, they may help with short-term financing by offering to pay a percentage of the $85,000 down payment. This is in case the franchisee is unable to pay.
The franchisor also doesn’t offer a franchisee’s leases, notes, and other obligations. If you’re a United States Armed Forces member, you’re eligible for a 10-percent discount on the franchise fee.
Did You Know?
Here are some interesting things you probably don’t know about Christian Brothers Automotive:
- Since launching, Christian Brothers Automotive continues to give back to its communities. They committed to help locally and internationally and spread the good news of Jesus Christ.
- In 2005, the company launched the National Service Day, offering free oil changes to community members and single mothers.
- In 2018, Christian Brothers Automotive’s National Service Day chose a random lucky person in need and gifted him with a vehicle.
Christian Brothers Automotive Franchise Cost
Your Investment:
Here is the total breakdown of the Christian Brothers Automotive franchise cost:
| Name of Fee | Low | High |
|---|---|---|
| Initial Franchise Fee | $135,000 | $135,000 |
| Real Estate and Improvements | $0 at startup. Monthly thereafter. | |
| Equipment and Software | $205,000 | $245,000 |
| Shuttle Vehicle | $18,000 | $33,000 |
| Shuttle Vehicle Wrap | $1,750 | $3,400 |
| Inventory | $10,000 | $11,000 |
| Security Deposits | $5,000 | $5,000 |
| Signs | $0 | $0 |
| Insurance & Business License | $5,000 | $35,000 |
| Marketing/Advertising (first year) | $20,000 | $30,000 |
| New Store Opening Marketing/Advertising | $15,000 | $20,000 |
| Additional Funds (initial 3 months) | $30,000 | $40,000 |
| Pre-Opening Training Travel/Salary | $7,500 | $10,000 |
| Other Payments | $2,000 | $15,000 |
| ESTIMATED TOTAL | $454,250 | $582,400 |
Other Costs:
| 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 | Established by the franchisor. |
| National Marketing Fee | Established by the franchisor. The franchisor can require franchisees to contribute up to $20,000 per year to the National Marketing Fund. The franchisor currently collects $10,000 per year, which is subject to change. |
| Regional Marketing Group Fee | Established by the franchisor. The franchisor can require franchisees to contribute up to $20,000 per year to the Regional Marketing Fund. The franchisor currently collects $2,500 per year, which is subject to change. |
| Transfer Fees | a) $2,500 application fee b) $27,500 transfer fee |
| Transaction Fee | The greater of 7% of the gross value of the business or $50,000. |
| Lease Payments | Approximately $14,000 to $25,000 base rent per month, plus triple net costs. |
| IT Support Fee | $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. Annual maintenance or license fees for these programs are approximately $1,350-1,500 and will vary depending on the underlying vendors’ current prices. |
| Liquidated Damages | The full amount of the franchise fee, which is currently $135,000. |
If you’re interested in getting a Christian Brothers Automotive franchise, visit their website for more information. And for other franchise information, check out Franchise How!