factual

What is the approximate size of a Christian Brothers Automotive franchise territory?

Christian_Brothers_Automotive Franchise · 2025 FDD

Answer 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 the 2025 Christian Brothers Automotive Franchise Disclosure Document, a franchisee is granted an exclusive geographic area designated as their "Territory." Franchisees operate from a single location within this territory and are not permitted to operate outside of it without permission. Christian Brothers Automotive will not operate or grant franchises for similar businesses within the franchisee's designated area. While franchisees can solicit customers outside their territory, they cannot target customers within another franchisee's territory.

The approximate size of a Christian Brothers Automotive territory is similar to the area within a circle with an approximate 3-mile radius around the franchise location. However, the FDD specifies that the exact territory size will be defined in Exhibit A of the Franchise Agreement and will not necessarily be a perfect 3-mile radius. The actual square footage within a franchise territory can vary significantly in size and shape, depending on various factors.

Prospective franchisees should note that they do not automatically gain the right to acquire additional franchises within their territory. If the Franchise Agreement is terminated, all rights to the territory are lost, but the franchisee retains rights to their area even if the population increases. It is important for potential franchisees to carefully review Exhibit A of the Franchise Agreement to understand the specific boundaries and characteristics of their designated territory, as the 3-mile radius is only an approximation and the actual territory may differ.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.