Does the Christian Brothers Automotive agreement specify that the franchisee may not disparage the franchisor's suppliers?
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.
Source: Item 23 — RECEIPTS (FDD pages 76–372)
What This Means (2025 FDD)
The 2025 Franchise Disclosure Document for Christian Brothers Automotive does not explicitly state that a franchisee is prohibited from disparaging the franchisor's suppliers. However, the agreement does state that franchisees must expend their best efforts in the operation of the franchised business and shall not engage in any 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 indirectly restrict disparagement of suppliers, as such actions could potentially harm the reputation or goodwill of the Christian Brothers Automotive brand. Additionally, franchisees are required to adhere to advertising standards set by Christian Brothers Automotive and must use approved advertising and promotional materials. This suggests that all communications, including those involving suppliers, are subject to the franchisor's oversight.
While there is no explicit prohibition, franchisees should exercise caution in their interactions with and statements about suppliers to avoid violating the general obligations to protect the brand's reputation and goodwill. It would be prudent for a prospective franchisee to seek clarification from Christian Brothers Automotive regarding the specific limitations on communications with suppliers to ensure compliance with the franchise agreement.