Does the Christian Brothers Automotive agreement specify that the franchisee may not disparage the franchisor's employees?
Christian_Brothers_Automotive Franchise · 2025 FDDAnswer from 2025 FDD Document
16.01 Best Efforts. During the term of this Agreement, Franchisee covenants and agrees to expend its best efforts in the operation of the Franchised Business, and shall not engage in any directly or indirectly conflicting or competing enterprises or any other activities which would be detrimental to or interfere with the operation, reputation or goodwill of the Franchised Business, the Franchisor, the System or any other of Franchisor's franchisees.
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)
The Christian Brothers Automotive 2025 Franchise Disclosure Document does not explicitly state that a franchisee is prohibited from disparaging the franchisor's employees. However, the agreement does include a clause regarding best efforts and potential actions that could be detrimental to the Christian Brothers Automotive brand.
Specifically, during the term of the agreement, the franchisee must expend their best efforts in operating the franchised business and cannot engage in activities that would be detrimental to the operation, reputation, or goodwill of the franchised business, the franchisor, the system, or any other of Christian Brothers Automotive's franchisees. This clause could be interpreted to include disparaging remarks or actions against the franchisor's employees if such actions were deemed harmful to the brand's reputation or goodwill.
Additionally, franchisees are prohibited from diverting or attempting to divert any present or prospective vendor or customer of any Christian Brothers Automotive branded business to any competitor, or performing any act injurious or prejudicial to the goodwill associated with the marks and the system. While this section focuses on vendors and customers, it reinforces the franchisee's obligation to protect the brand's reputation, which could extend to interactions involving the franchisor's employees. A prospective franchisee should clarify with Christian Brothers Automotive what specific actions or statements could be considered detrimental or injurious under these clauses.