Is the agreement between a franchisee and Christian Brothers Automotive considered confidential?
Christian_Brothers_Automotive Franchise · 2025 FDDAnswer from 2025 FDD Document
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Franchisee's employees are not employees of Franchisor or its affiliates.
Franchise Agreement (Ver 04-14-2025)
Franchisee: ___________
Franchisor: Christian Brothers Automotive Corporation
7. CONFIDENTIAL INFORMATION.
7.01 Non-Use and Non-Disclosure of Confidential Information. Except as otherwise stated herein, Franchisee shall not, during the term of this Agreement or at any time thereafter, communicate, divulge or use for the benefit of any other person, persons, partnership, association, corporation or entity the Confidential Operations Manual, any information, knowledge or Know-How concerning the systems of operation, products, services, procedures, policies, standards, criteria or Customers, Customer Information, Data and/or any other information which Franchisor designates in other sections of this Agreement or elsewhere as confidential (collectively "Confidential Information"). Franchisee may disclose Confidential Information that is required for the operation of the Franchised Business to its employees who must have access to it in order to perform their job duties for the operation of the Franchised Business. Franchisee shall take such precautions to ensure that its employees retain such information in confidence, including when Franchisor deems it appropriate, the execution by each such employee of a nondisclosure and noncompetition agreement provided by Franchisor (the "Nondisclosure Agreement"). If required by Franchisor, the Nondisclosure Agreement must (a) be executed at the earlier of the commencement of employment or the commencement of training of the respective employee, and (b) comply with the law of the state where the Franchised Business is located including without limitation all requirements pertaining to the validity and enforceability of the Nondisclosure Agreement. The Nondisclosure Agreement will be in a form prescribed by Franchisor and will include, without limitation, specific identification of Franchisor as a third-party beneficiary of the Nondisclosure Agreement with the
Franchise Agreement (Ver 04-14-2025) Franchisee: ___________
Franchisor: Christian Brothers Automotive Corporation
independent right to enforce it. Franchisee will submit copies of all such executed
Nondisclosure Agreements to Franchisor within ten (10) days of their execution.
- ADVERTISING AND MARKETING.
8.01 Advertising Standards. Franchisee will only use such advertising, identification and
promotional materials and programs (including, but not limited to, printed and broadcast
advertisements, stationery, business cards, press releases, signs, displays, leaflets,
newspaper inserts, promotional mail outs and promotional literature) which have been
furnished by Franchisor or been approved in advance by Franchisor in accordance with
Section 8.04.
Source: Item 23 — RECEIPTS (FDD pages 76–372)
What This Means (2025 FDD)
According to the 2025 Franchise Disclosure Document, Christian Brothers Automotive emphasizes the confidentiality of certain information. Franchisees are prohibited from communicating, divulging, or using Confidential Information, which includes the Confidential Operations Manual, systems of operation, products, services, procedures, policies, standards, criteria, customer information, data, and any other information designated as confidential by Christian Brothers Automotive. This obligation extends both during the term of the Franchise Agreement and after its termination.
Christian Brothers Automotive requires franchisees to ensure their employees also maintain confidentiality. Franchisees must take precautions to keep the information confidential, potentially including having employees sign a Nondisclosure Agreement. If required by Christian Brothers Automotive, this agreement must be executed at the earlier of employment or training commencement and comply with state law. Christian Brothers Automotive is a third-party beneficiary of this agreement and has the right to enforce it. Franchisees must provide copies of these agreements to Christian Brothers Automotive within ten days of execution.
After the termination of the Franchise Agreement, the franchisee must discontinue using Christian Brothers Automotive's marks, including the Authorized Name, and cannot operate under any name that might mislead the public into thinking they are still a Christian Brothers Automotive franchise. Franchisees are also prohibited from using any of Christian Brothers Automotive's trade secrets, procedures, techniques, Confidential Information, or materials acquired during the agreement. This highlights the importance Christian Brothers Automotive places on protecting its proprietary information and maintaining a consistent brand identity.