Does the Christian Brothers Automotive agreement specify that the franchisee may not disparage the franchisor's affiliates?
Christian_Brothers_Automotive Franchise · 2025 FDDAnswer from 2025 FDD Document
- 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. All advertising by Franchisee shall be conducted in a dignified manner, shall conform to such standards, specifications and requirements as Franchisor may specify from time to time in writing, in its Confidential Operations Manual or otherwise, and shall not in any way detract from, reflect unfavorably upon, or denigrate the Marks, the System, the products, or Franchisor.
Source: Item 23 — RECEIPTS (FDD pages 76–372)
What This Means (2025 FDD)
According to the 2025 Christian Brothers Automotive Franchise Agreement, franchisees are restricted from actions that negatively impact the franchisor. Specifically, Section 8.01 states that all advertising by the franchisee must be conducted in a dignified manner and must not detract from, reflect unfavorably upon, or denigrate the marks, the system, the products, or Christian Brothers Automotive. This clause focuses on maintaining the brand's reputation and standards in all advertising and promotional activities.
This requirement means that franchisees must ensure all their advertising and marketing materials align with the standards set by Christian Brothers Automotive. Any deviation from these standards or any advertising that could be seen as harmful to the brand's image is prohibited. This includes printed and broadcast advertisements, stationery, business cards, press releases, signs, displays, leaflets, newspaper inserts, promotional mail outs, and promotional literature.
While the clause explicitly prohibits disparaging Christian Brothers Automotive itself, it does not directly mention the franchisor's affiliates. However, franchisees should clarify with Christian Brothers Automotive whether this extends to affiliates. Franchisees should seek explicit guidance on what constitutes disparagement and how it applies to advertising and promotional materials to ensure compliance and avoid potential breaches of the agreement.