FranchiseVerdict
Christian Brothers Automotive logo
FV-00532·STRONGExcellent100

Christian Brothers Automotive

Automotive - Repair & ServiceFranchising since 1996Website
Investment
$550K – $680K
89th pct Repair & Serv…
Avg revenue
$2.9M
49th pct Repair & Serv…
Royalty
50.0% (?)
Likely extraction error
Units
302
79th pct Repair & Serv…
SBA default
0.0%
vs <3% typical

Bottom line

  • Total investment $550K – $680K including a $135K franchise fee, 50.0% ongoing royalty.
  • Average unit revenue of $2.9M/year (median $2.7M). Estimated payback in 2.0 years.
  • Rated STRONG with a risk score of 46/100. SBA loan default rate of 0.0% across 376 loans (below the industry average).

Item 1 · who you're contracting with

The Franchisor

Legal entity
Christian Brothers Automotive Corporation
Incorporated in
Texas
HQ
17725 Katy Freeway, Houston, Texas 77094
Auditor
Baker Tilly US, LLP
Audited financials
Franchisor revenue
$137.2M
vs $151.9M prior year

Yale framework · single-unit ROIC

Returns Analysis

Pulls Item 7 (investment) and Item 19 (revenue) from this brand's FDD into the Yale unlevered-ROIC formula. Override any input to stress-test it against your own assumptions.

The model · Yale framework

What would one Christian Brothers Automotive unit return on the cash you put in?

Revenue · per unit, per year
$
FDD Item 19 reports $2,877,457
Franchisor take · royalty + ad fund
Royaltytyp 68%
%
Ad fundtyp 35%
%
Operating costs · category default: automotive
COGS
%
Labor
%
Rent / occupancy
%
Other operating
%
Total invested capital · what you actually put in
Initial investment
$
FDD Item 7: $550K–$680K
Working capital
$
FDD reports $30K–$40K

Unlevered ROIC · per unit

-124%

Negative

0%30–60% Yale band80%

Store EBITDA · annual
$-806K
EBITDA margin
-28.0%
Total invested
$650K
Payback
Unit-level only. A multi-unit portfolio gives up roughly 5–15% of this to shared services (corporate G&A) before reaching the ~10-unit break-even Yale describes.

Overview

About

Franchisees operate full-service automotive repair shops offering brake service, oil changes, transmission work, and general maintenance. Day-to-day operations include managing technicians, handling customer service, scheduling appointments, and overseeing vehicle diagnostics and repairs while adhering to CBA's service standards and operational protocols.

CEO
Don Carr
Founded
1982
FDD year
2025
States available
30

Item 7 · what it costs

The Vitals

Total investment
$550K – $680K
All-in to open one unit
Liquid capital
$30K – $40K
Cash you must have on hand
Franchise fee
$135K
Royalty
50.0%
Split Profits · typical 6–8%
Ad fund
3.0%
typical 3–5%
Total fee load
3.0%
vs 9–13% typical
Payback period
2.0 yrs
From v3 / Item 19

Item 19

Financial Performance

Avg gross sales
$2.9M
Per unit, per year
Median gross sales
$2.7M
Item 19 type
Net Sales, COGS, GP, G&A, NOI, and Total Owner Benefit
Sample size
280 units
vs category median 59 · large
Range (low → high)
$1.3M$6.4M
Cohort dispersion
Transparency
9 / 5
vs category median 4 / 5 · above
Revenue rank49th
vs Automotive - Repair & Service peers
Investment cost rank89th
Lower investment ranks lower (better)
Royalty rate rank77th
Lower royalty = lower percentile (better)
Unit count rank79th
vs Automotive - Repair & Service peers
Risk score rank7th
Lower risk = lower percentile (better)

Item 20 · unit dynamics

The Growth Chart

Total units
302
Opened
22
Last reporting year
Closed
0
Turnover rate
0.0%
Company-owned
0
Corporate units in the system
% franchised
100%
vs corporate-owned
Multi-unit owners
12.5%
Net growth (yr3)
+7.9%
Net unit change last year
3-yr CAGR
+14.0%
Compounded over last 3 years
2023
302+22
Franchised units
2024
280
Franchised units
2025
265
Franchised units

Year-over-year franchised unit counts and net change. Source: FDD Item 20.

Item 20 · 8 states with active franchisees

The Territory Map

Derived from franchisee contact records. Shows states with at least one current operator — not where the franchisor is registered to sell new units (that data is re-extracting in a future refresh).

AK
ME
VT
NH
MA
RI
CT
NY
NJ
PA
DE
MD
DC
WA
OR
CA
NV
ID
MT
WY
UT
CO
AZ
NM
ND
SD
NE
KS
OK
TX
MN
IA
MO
AR
LA
WI
IL
MS
TN
MI
IN
KY
AL
OH
WV
GA
VA
NC
SC
FL
HI
Registered · 8 states
Not registered

States derived from franchisee phone area codes (Item 20). Approximate — ported numbers may show the original state, not the franchisee's current location.

Government records

SBA Loan Data

Aggregated from SBA 7(a) loan disclosures, public data unique to FranchiseVerdict.

Total loans
376
Loan volume
Avg loan
Default rate
0.0%
vs <3% typical · system-wide
5-yr default

FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17

Risk & Legal

46
Risk · 0-100
STRONG46 / 100

Christian Brothers Automotive presents elevated risk due to an extractive 50% royalty structure, pending litigation, undocumented financial claims, and anemic unit growth that contradicts profitability claims.

Score breakdown · what drove the 46 / 100 rating

  1. 01MINORUnusually high royalty structure (50% of split profits) is unsustainable and creates misaligned incentives between franchisor and franchisee
  2. 02HIGHTwo active litigations including material arbitration over competing business violation suggests enforcement issues and franchise relationship deterioration
  3. 03MINORSlow unit growth (7.9% YoY) with 302 units indicates market saturation or franchisee struggles despite claimed $314k avg net income
  4. 04MINORHigh initial investment ($550k-$680k) combined with 50% profit split creates extended break-even period and poor ROI structure
  5. 05HIGHNo Item 19 financial performance claim (Going Concern: False) means franchisor won't verify the $314,559 avg net income figure independently
  6. 06MED15-year term length locks franchisee into exploitative royalty structure with limited exit options

Severity inferred from the FDD text · not a regulatory classification

FDD Items 5, 6, 12, 17 · continued from Risk & Legal

Contract & Territory Detail

Territory
Radius
Protected territory
Yes
Initial term
15 years
Renewal term
5 years
Online sales rights
Restricted
Franchisor can compete
No
Hire a manager?
Allowed
Litigation count
2
Right of first refusal
Yes
Franchisor can buy back on resale
Mandatory arbitration
Yes
Jury trial waiver
Yes
Non-compete
3 yrs
Post-termination restriction
Owner-operator
Required
Governing law
Texas

Item 11

Training & Operations

Classroom training
125 hrs
On-the-job training
420 hrs
POS system
Tekmetric
Operating tech stack

Item 20

Franchisee Contacts

Phone numbers extracted directly from this brand's FDD Item 20. After purchase, you'll also receive a list of validation questions tailored to this brand.

Franchisee contacts

41 numbers

Locked
(415) 972-••••
OH
(804) 371-••••
OH
(503) 378-••••
OH

One-time purchase · CSV download · Validation questions included

FDD download

Christian Brothers Automotive · FDD (2025) PDF

Single-page checkout · instant download · CSV export of contacts available separately above