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Description
Investment Icon

What Are the Initial Investment Requirements for a Christian Brothers Automotive Franchise?

To start a Christian Brothers Automotive franchise, you will need to prepare for an initial investment ranging from $530,250 to $645,400. This includes a franchise fee of $135,000. Additionally, you should have at least $135,000 in cash available and a net worth between $100,000 and $1,000,000. Understanding these financial commitments is crucial for aspiring franchisees to ensure they are adequately prepared for this business venture.

Fees Icon

What Are the Ongoing Fees and Financial Performance Metrics?

Christian Brothers Automotive charges a royalty fee of 6% on new units and a marketing fee of 3%. The average annual revenue per unit is approximately $523,000, with a median annual revenue reaching $1,000,000. This indicates a potentially lucrative investment, but it’s important to factor in these ongoing fees when calculating your overall profitability.

Revenue Icon

How Long Does It Take to Break Even and Recoup Your Investment?

Franchisees can expect a breakeven period of around 18 months, with an investment payback period of approximately 29 months. This timeline can vary based on individual unit performance and market conditions, but it serves as a helpful benchmark for franchisees to plan their financial strategies effectively.

Breakeven Icon

What Is the Growth Trend of Christian Brothers Automotive Franchises?

Christian Brothers Automotive has shown consistent growth, increasing its franchised units from 227 in 2021 to 265 in 2023. The absence of corporate-owned units since 2022 suggests a strong focus on franchising, which may appeal to potential franchisees looking for a supported business model with a proven track record of expansion. This upward trend can indicate a healthy market demand for their services.

Christian Brothers Automotive Franchise Financial Requirements

Below, you’ll find an overview of the initial investment needed to launch the business, along with the ongoing fees required by the franchisor to maintain operations over time.

Net Worth Required icon The minimum total assets (minus liabilities) you must possess.

i Net Worth Required:

$100,000 - $1,000,000
Investment Payback icon The estimated period to recoup your total investment.

i Investment Payback:

29 Months
Franchise Fee icon The initial fee paid to join the franchise system.

i Franchise Fee:

$135,000
Royalty Fee icon Ongoing percentage of revenue paid to the franchisor.

i Royalty Fee:

6%
Marketing Fee icon Regular contribution toward the franchise’s advertising fund.

i Marketing Fee:

3%
Breakeven Time icon The estimated timeframe to recover your initial costs.

i Breakeven Time:

18 Months
Initial Investment icon The total amount required to launch the franchise.

i Initial Investment:

$530,250 - $645,400
Cash Required icon The minimum liquid capital you must have on hand.

i Cash Required:

$135,000
Average Revenue icon The typical yearly revenue generated per franchise location.

i Average Revenue:

$523,000
Median Revenue icon The middle value of yearly revenue among franchise locations.

i Median Revenue:

$1,000,000
Highest Revenue icon The largest reported annual revenue among franchisees.

i Highest Revenue:

$1,250,000
Lowest Revenue icon The smallest reported annual revenue among franchisees.

i Lowest Revenue:

$145,000
Industry icon A broad sector defining similar types of franchise businesses.

i Industry:

Automotive Franchises
Category icon A more specific division within the broader industry.

i Category:

Auto Repair
Leadership icon The key individuals guiding the franchise’s strategy and growth.

i Leadership:

Mark Carr
Corporate Address icon The official business address of the franchisor’s headquarters.

i Corporate Address:

17725 Katy Fwy., #200, Houston, Texas 77094
Funding Year icon Available financing options to help start the franchise.

i Funding Year:

1982
Parent Company icon The main organization that owns the franchise brand.

i Parent Company:

Christian Brothers Automotive Corporation

Christian Brothers Automotive Franchise Unit Growth Summary

A breakdown of corporate, franchised, and total units, with yearly net changes.

The overall number of operating franchise locations.

Total Units i

265
The number of locations owned by independent franchisees.

Franchised Units i

265
The number of locations owned and run by the franchisor.

Corporate Units i

0
Units 2021 2022 2023
Total Units 231 247 265
Net Change YoY 16 18
Franchised Units 227 247 265
Net Change YoY 20 18
Corporate Units 4 0 0
Net Change YoY -4 0
Investment About

Investment Overview

The initial investment for a Christian Brothers Automotive franchise ranges from $530,250 to $645,400, which includes a franchise fee of $135,000. Potential franchisees should be prepared with a cash requirement of $135,000 and a net worth between $100,000 and $1,000,000 to qualify for the opportunity.

Potential About

Revenue Potential

Each franchise unit has shown impressive financial performance, with average annual revenue per unit reported at $523,000. The median annual revenue stands at $1,000,000, indicating a strong earning potential for franchise owners in the automotive service industry.

Metrics About

Franchise Growth

Christian Brothers Automotive has experienced steady growth in its franchised units, increasing from 227 in 2021 to 265 in 2023. This upward trend reflects the brand’s expanding market presence and the increasing demand for quality automotive repair services.

Fees About

Financial Performance

The average financial metrics for franchise units reveal a gross profit margin of 68.88%, with operating expenses accounting for 36.78% of revenue. This results in an EBITDA of approximately 24.67%, showcasing the profitability potential for franchisees.

Breakeven About

Breakeven and Payback

Franchise owners can expect to reach breakeven within approximately 18 months of operation. The investment payback period is around 29 months, making it a relatively favorable timeline for recovering initial investments in the franchise.

Units About

Ongoing Fees

Franchisees are subject to ongoing fees, including a royalty fee of 6% on gross sales and a marketing fee of 3%. These fees contribute to the overall operational costs but are essential for brand support and marketing efforts that drive customer traffic.

Frequently Asked Questions

The total initial investment for a Christian Brothers Automotive franchise ranges from $530,250 to $645,400. This includes the franchise fee, equipment, and other startup costs.