Christian Brothers Automotive vs Merlin
Christian Brothers Automotive vs Merlin: Christian Brothers Automotive costs $350K–$771K to open; Merlin costs $262K–$531K. Christian Brothers Automotive has 242 units, Merlin has 61. SBA loan history: Christian Brothers Automotive = 319 loans (0.0% default); Merlin = 74 loans (12.2% default). The franchise with more SBA-funded units, lower default rate, and lower royalty load is the safer financing bet — see the comparison below.
Christian Brothers Automotive vs Merlin — Capital, Scale & Lending Analysis
Data-driven differentiation pulled from FDD filings and SBA 7(a) loan-level data. Each pairing reflects a unique combination of capital intensity, system scale, and financing path.
Capital Intensity
Merlin requires the lower minimum capital commitment ($262K vs $350K for Christian Brothers Automotive), a 33% spread. Initial franchise fees come in at $135K for Christian Brothers Automotive versus $30K for Merlin — Merlin has the lower entry fee.
System Scale & Tenure
On scale, Christian Brothers Automotive operates 242 units to Merlin's 61 — roughly 4× the system size. Merlin has been operating 51 years (founded 1975) versus 44 for Christian Brothers Automotive (founded 1982) — a 7-year tenure gap that affects unit-economics maturity and FDD revision history.
SBA Lending Profile
Christian Brothers Automotive has the deeper SBA lending track record with 319 historical 7(a) approvals versus 74 for Merlin. Christian Brothers Automotive's peak SBA year was 2022 (33 loans); Merlin's peak was 1999 (9 loans). Christian Brothers Automotive's more recent peak generally indicates fresher lender appetite. Geographically, Christian Brothers Automotive concentrates in TX (128 SBA-funded units) while Merlin leads in IL (61) — pick the brand whose strongest state matches yours for warmest lender introductions. Average SBA loan size on funded Christian Brothers Automotive deals is $381K vs $236K for Merlin — useful as a sizing anchor when modeling your own unit.
Risk Signal
SBA default rates are 0.0% for Christian Brothers Automotive and 12.2% for Merlin — Christian Brothers Automotive has the cleaner historical loss profile by 12.2 points. PeerSense FPI scores come in at 64 (Moderate) for Christian Brothers Automotive and 23 (Fair) for Merlin, giving Christian Brothers Automotive the stronger composite signal across SBA performance, lender appetite, and operational consistency.
Health & Performance
FPI Score | 64/100 | 23/100 |
Health Tier | Moderate | Limited |
Confidence | N/A | N/A |
Lending Trend | Declining | Declining |
SBA Lending
SBA Loans | 319 | 74 |
SBA Volume | — | — |
Default Rate | 0.0% | 12.2% |
Peer Tier | major | established |
Investment & Costs
Total Investment | $350K – $771K | $262K – $531K |
Franchise Fee | $135K | $30K |
Royalty Rate | 50% | 6.9% |
Ad Fund | 3% | 5% |
Liquid Capital | $85K | N/A |
Net Worth Required | $250K | N/A |
Financial Performance (Item 19)
Item 19 Status | Not Disclosed | Not Disclosed |
System Size & Operations
Total Units | 242 | 61 |
Franchised Units | 242 | 61 |
Company-Owned | — | — |
Term Length | 15 yrs | 20 yrs |
Brand Information
Year Founded | 1982 | 1975 |
Franchising Since | 1996 | N/A |
Years Franchising | 30 yrs | N/A |
Headquarters | DALLAS, TX | Charlotte, NC |
Category | General Automotive Repair | General Automotive Repair |
Website | ||
FDD Year | 2025 | N/A |
Which Is Better — Christian Brothers Automotive or Merlin?
Lower upfront capital required
Merlin
Christian Brothers Automotive: $350K starting · Merlin: $262K starting
More SBA lender confidence
Christian Brothers Automotive
Christian Brothers Automotive: 319 SBA loans · Merlin: 74 SBA loans
Lower historical default rate
Christian Brothers Automotive
Christian Brothers Automotive: 0.0% · Merlin: 12.2%
Larger system & brand presence
Christian Brothers Automotive
Christian Brothers Automotive: 242 units · Merlin: 61 units
Lower ongoing royalty load
Merlin
Christian Brothers Automotive: 50% · Merlin: 6.9%
More lender financing options
Christian Brothers Automotive
Christian Brothers Automotive: 44 unique lenders · Merlin: 24 unique lenders
Decision matrix uses publicly disclosed FDD and SBA loan data. Not a recommendation — your best franchise depends on capital, market, operating capacity, and risk tolerance.
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About These Franchises
Christian Brothers Automotive vs Merlin: Franchise Funding Comparison
Comparing Christian Brothers Automotive and Merlin is about more than brand preference — it's about which franchise fits your financial profile and funding strategy. Investment ranges from $262K to $771K.
Both brands have active SBA lending histories — Christian Brothers Automotive with 319 SBA loans and Merlin with 74. This means proven lender acceptance and established underwriting paths for franchise buyers.
SBA 7(a) loans are the most common franchise funding vehicle, offering up to $5M with as little as 10% down. PeerSense connects franchise buyers with the specific lenders who have approved loans for these brands — not generic referrals, but lenders with actual franchise lending track records.
Data sourced from SBA loan records, Franchise Disclosure Documents, and public filings. Updated regularly. Not financial advice — consult with a lending professional before making investment decisions.
Christian Brothers Automotive vs Merlin — Frequently Asked Questions
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