Does Christian Brothers Automotive allow franchisees to relocate their franchise location?
Christian_Brothers_Automotive Franchise · 2025 FDDAnswer from 2025 FDD Document
In conjunction with the establishment of your franchise you will be granted an exclusive geographic area, consisting of an identifiable geographic territory, which will be designated as your "Territory." You will operate from one location and must receive CBAC's permission before relocating; however, currently we do not allow relocation. You will not have the right to operate your franchise outside of your Territory. CBAC will not operate or grant franchises for a similar or competitive business within your area. Except when advertising cooperatively with appropriate franchisees, you may not advertise or solicit customers within another franchisee's territory. You may solicit customers outside of your Territory as long as you are not soliciting customers within another franchisee's territory. You must sell all products and services through your CBA location. You are prohibited from selling any products or services through alternative channels of distribution such as the Internet, catalog sales, telemarketing or other direct marketing sales. We reserve the right to sell products within and outside your Territory through alternative distribution channels, and you will not receive compensation for such sales. You do not receive the right to acquire additional franchises within your area. If your Franchise Agreement is terminated, you will lose all rights to your Territory. You maintain the rights to your area even though the population increases. The approximate size of a territory will be similar to the area that is in a circle with an approximate 3-mile radius around the location. Your exact territory size will not be a 3-mile radius, and instead will be set in Exhibit A to the Franchise Agreement you enter into with CBAC. The square footage within your franchise territory may vary significantly in size and shape depending on a number of different variables.
Source: Item 12 — TERRITORY (FDD pages 52–54)
What This Means (2025 FDD)
According to Christian Brothers Automotive's 2025 Franchise Disclosure Document, franchisees must receive permission from Christian Brothers Automotive before relocating their franchise. However, Christian Brothers Automotive currently does not allow franchisees to relocate. Franchisees operate from one location within their assigned exclusive geographic territory.
This policy means that a prospective Christian Brothers Automotive franchisee should carefully consider the initial location, as relocation is generally not an option. The franchisee's territory is defined in Exhibit A of the Franchise Agreement and is approximately a 3-mile radius around the location, though the exact size and shape can vary.
Christian Brothers Automotive also retains the right to establish company-owned locations outside the franchisee's territory. This could potentially impact a franchisee if a company-owned store is opened nearby, though it would be outside their exclusive territory. The franchisee is restricted from selling products or services through alternative channels like the Internet, and must operate solely from their physical location.