IN 2015, INDIVIDUALLY OPERATED CHRISTIAN BROTHERS AUTOMOTIVE FRANCHISE OWNERS AGGREGATED THEIR HEALTH CARE PLAN PURCHASING POWER AND FORMED A LARGE GROUP HEALTH CARE PLAN TO BENEFIT THEMSELVES AND THEIR EMPLOYEES.
For several years, the majority of Christian Brothers automotive franchise owners have asked us to find a solution to health care coverage that would be tailor made to suit the needs of both owners and their employees. We are excited to announce that not only have we come up with a solution that will make our franchisees more competitive in attracting the best talent in the industry, but that our program gives owners the ability to choose from a range of plans that offer health care coverage options.
To offer the new health care coverage, we worked with our franchisees to form a Multiple Employer Welfare Arrangement (MEWA), which allows franchisees, who are independent small business owners, to expand their risk pool by choosing to join a particular plan. The pooled risk helps lower premium costs, and makes it easier for owners and their employees to afford better coverage.
We worked with franchisees to develop four plans that owners can choose from to specifically suit their needs. While participation in the plan is not mandatory, 65% of Christian Brothers automotive franchise owners have already signed up.
Michael Suttle, System-wide Initiatives Manager with Christian Brothers, spearheaded the initiative to find a solution to health care coverage and says the feedback from owners has been overwhelmingly positive.
“Our participating owners are exceptionally pleased,” Michael says. “The large group plan offers our franchisees what they asked for. By offering this larger, more robust plan the annual burden of shopping rates and finding a suitable small business plan was taken off of their plates which provides them additional time to focus on running their businesses.”
Employer-provided health care coverage is a major challenge for most auto repair franchise owners. Since franchisees are independent business owners, they don’t have the buying power and large pool of employees that can help them negotiate better rates and coverage. By joining the MEWA, Christian Brothers owners are able to overcome that challenge and more easily obtain coverage for themselves and their employees.
“We’re not currently aware of any other franchisor the automotive services industry that’s offering this type of plan as a platform,” Michael says. “We believe we have enabled our owners to have the chance to find a plan that provides more options to better suit their individual insurance needs. We utilize a private and secure web-based portal where our owners and their employees can research the available options and make a customized plan choice. Ultimately, we believe that by offering a plan like this, Christian Brothers becomes a more compelling business to job seekers.”
Even before the announcement of the health care platform, Christian Brothers automotive franchise owners had several incentives in place to attract top-tier talent. We are closed on the weekends so owners and their employees can spend more time with their families. Our owners are encouraged to live their faith in their businesses, which translates into honest and caring service for customers and into happier employees who get to stay focused on helping customers by offering ethical service.
Christian Brothers is a highly rated, faith-based auto repair franchise with a unique financial model. Christian Brothers assumes a majority of the risk by purchasing and constructing “built-to-suit” buildings, which the franchisee manages. Christian Brothers does not charge a franchisee from the top-line revenues like virtually every other franchisor, but on a share of the profits, which is calculated after expenses. Franchisees also pay themselves a salary before they pay the franchisor a nickel.
For in-depth details about the Christian Brothers Automotive franchise opportunity, contact our team today.