Does the Christian Brothers Automotive agreement specify that the franchisee may not disparage the franchisor's officers?
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)
Based on the 2025 Franchise Disclosure Document, the Christian Brothers Automotive franchise agreement does not explicitly state that a franchisee is prohibited from disparaging the franchisor's officers. However, the agreement does include a clause regarding the franchisee's responsibility to avoid actions detrimental to the franchisor's reputation and goodwill.
Specifically, during the term of the agreement, franchisees must expend their best efforts in operating the franchised business and are prohibited from engaging in any activities that could 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 officers if such actions are deemed harmful to the brand's reputation.
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 protecting the business from direct competition and actions that harm its goodwill with customers and vendors, it indirectly relates to the broader concept of maintaining a positive brand image, which could be affected by disparaging remarks against the franchisor's leadership.
Therefore, while there is no explicit mention of disparagement, franchisees should be aware of the implications of their actions and statements, particularly those that could negatively impact the reputation and goodwill of the Christian Brothers Automotive brand. It would be prudent for a prospective franchisee to seek clarification from the franchisor regarding the specific types of conduct that could be considered a breach of these clauses.