Where will arbitration occur according to the Christian Brothers Automotive agreement?
Christian_Brothers_Automotive Franchise · 2025 FDDAnswer from 2025 FDD Document
You agree that any lawsuit brought by CBAC to enforce its rights under this Letter Agreement shall be brought in the courts of the county where CBAC has its then current principal place of business, and you agree and consent to the jurisdiction of such court to resolve all disputes which arise out of this Letter Agreement or any alleged breach thereof, regardless of your residency at the time such lawsuit is filed.
This Letter Agreement shall be governed by the laws of the State of Texas.
In the event of any conflict of law, the laws of Texas shall prevail, without regard to, and without giving effect to, the application of Texas conflict of law rules.
Source: Item 22 — CONTRACTS (FDD page 76)
What This Means (2025 FDD)
The 2025 Franchise Disclosure Document for Christian Brothers Automotive does not specify where arbitration will occur. However, the Letter Agreement included as Exhibit H states that any lawsuit brought by Christian Brothers Automotive to enforce its rights must occur in the courts of the county where Christian Brothers Automotive has its principal place of business. The franchisee agrees and consents to the jurisdiction of that court to resolve disputes arising from the Letter Agreement or any alleged breach, regardless of the franchisee's residency. The Letter Agreement is governed by Texas law, and in the event of a conflict of law, Texas law prevails.
Since the FDD does not explicitly state where arbitration would occur, prospective franchisees should clarify with Christian Brothers Automotive where arbitration proceedings would be held. Understanding the location of arbitration is crucial, as it can significantly impact the cost and convenience of resolving potential disputes.
It is important to note that legal and dispute resolution processes can be complex and vary based on jurisdiction. Therefore, consulting with a legal professional is advisable to fully understand the implications of the franchise agreement and related documents.