Christian Brothers Automotive Corporation

The franchise fee of $135,000 is nearly 3 times higher than the typical range for automotive franchises. What specific value, services, or competitive advantages justify this elevated fee structure?

The ad fund rate of 3.0% is 50% higher than the typical range of 0.75-2.0%. How is this fund allocated, and what marketing activities or campaigns does it fund annually?

Transfer fees of $30,000 are double the typical range. What does this fee cover in the transfer process, and are there circumstances where this fee could be waived or reduced?

Your system has reported zero unit closures and zero franchisor-initiated terminations over 5 years. What specific operational, financial, or quality standards enable this exceptional retention rate?

Average gross sales of $2.9 million per unit are nearly 70% above the typical range. What factors contribute to this above-average performance, and are these results representative across all unit types and locations?

What specific conditions, if any, would trigger the franchisor's right to terminate the franchise agreement, given the 15 documented non-curable defaults mentioned in your disclosure?

The agreement requires both the franchisee and spouse to provide personal guarantees. If a spouse is not involved in business operations, what is the rationale for requiring their personal guarantee on all financial obligations?

All disputes must be arbitrated in Houston, Texas. What is the average cost and timeline for arbitration cases in your franchise system, and has this requirement been challenged by franchisees?

The non-compete clause extends 3 years beyond franchise termination with no specified mile radius. How is geographic scope defined, and does it apply to all service categories or specific services only?

You have 1 pending litigation case. Can you provide details on the nature of this case, the parties involved, and the expected timeline for resolution?

Of the 2 litigated cases in your system, what were the outcomes, total costs incurred, and were settlements or judgments involved? What issues do these cases reflect?

The franchise agreement contains 15 non-curable defaults. Can you provide the complete list and explain which defaults are most commonly cited in franchisor-franchisee disputes?

Monetary defaults require 5-day cure periods while non-monetary defaults allow 15 days. Why is there a 3x difference in cure periods, and what examples would fall into each category?

What percentage of your current 302 units are owned by original franchisees versus new owners post-transfer? What is the average tenure of transferred units?

Of the 19 transfers in 2024, how many were voluntary (franchisee-initiated sales) versus franchisor-facilitated transfers or other circumstances?

The franchise provides Item 19 financials showing average gross sales of $2.9 million. What percentage of your 302 units actually achieved this average, and what is the range from highest to lowest performing units?

What ongoing training, support, and technology services are included in the $475 annual technology fee, and are there additional technology costs beyond this fee?

How many of your 22 new units added in the past year were organic growth versus acquisition or conversion of existing businesses, and what is your projected unit growth for the next 3 years?

The renewal provisions state 3 x 5-year options totaling 30 years potential term, but specify only 3 renewal conditions versus the typical 5.5-8.0. What conditions must be met to qualify for each renewal, and are they automatically granted?

What specific encroachment protections are contractually guaranteed, and under what circumstances could the franchisor license a competing concept or location within an existing franchisee's territory?