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Christian Brothers Automotive Franchise ProfileAutomotive Franchises > Auto Repair |
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.
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.
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.
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.
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Christian Brothers Automotive Franchise Unit Growth Summary
A breakdown of corporate, franchised, and total units, with yearly net changes.
Total Units
Franchised Units
Corporate Units
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 |
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.
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.
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.
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.
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.
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.