Does the Christian Brothers Automotive agreement specify that the franchisee may not disparage the franchisor's customers?
Christian_Brothers_Automotive Franchise · 2025 FDDAnswer from 2025 FDD Document
16.02 Exclusive Relationship; During the Agreement Term. Franchisee specifically acknowledges that, pursuant to this Agreement, Franchisee will receive valuable, specialized training and Confidential Information, including information regarding the operational, sales, promotional, and marketing methods and techniques of Franchisor and the System. Franchisee covenants that during the term of this Agreement, except as otherwise approved in writing by Franchisor, Franchisee shall not, either directly or indirectly, for itself, or through, on behalf of, or in conjunction with any person, partnership, joint venture, organization or legal entity:
(a) Divert or attempt to divert any present or prospective vendor or Customer of any Christian Brothers Automotive branded business or franchise to any competitor, by direct or indirect inducement or otherwise, or do or perform, directly or indirectly, any other act injurious or prejudicial to the goodwill associated with the Marks and the System;
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 taking actions that could harm the goodwill associated with the brand. Specifically, franchisees are prohibited from diverting or attempting to divert any present or prospective customer of any Christian Brothers Automotive branded business to a competitor. This includes any direct or indirect inducement or any other act that could be injurious or prejudicial to the goodwill associated with the Marks and the System.
This clause ensures that franchisees actively work to maintain and enhance the brand's reputation and customer relationships. By preventing franchisees from soliciting Christian Brothers Automotive customers for competing businesses, the agreement aims to protect the customer base and overall brand equity. This is a common provision in franchise agreements to safeguard the franchisor's investment in building brand recognition and customer loyalty.
In practical terms, a Christian Brothers Automotive franchisee must avoid any actions that could be perceived as steering customers away from the Christian Brothers Automotive network. This includes not only overt attempts to redirect customers to a competing service but also any subtle actions that could undermine customer confidence in the brand. Franchisees must be vigilant in ensuring their business practices align with the goal of maintaining and growing the Christian Brothers Automotive customer base.