What does the California Commissioner require Christian Brothers Automotive to amend in its franchise documents?
Christian_Brothers_Automotive Franchise · 2025 FDDAnswer from 2025 FDD Document
CALIFORNIA LAW MODIFICATIONS
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- The California Commissioner requires that certain provisions contained in franchise documents be amended to be consistent with California law, including the California Franchise Relations Act, Cal. Bus. Prof. Code, Division 8, Chapter 5.5, Section 20000-20043 (the "Act"). To the extent that the Disclosure Document and/or Agreement contains provisions that are inconsistent with the following, such provisions are hereby amended:
a. All appendices to the Disclosure Document are hereby amended to include the following provision: "THE CALIFORNIA FRANCHISE INVESTMENT LAW REQUIRES THAT A COPY OF ALL PROPOSED AGREEMENTS RELATING TO THE SALE OF THE FRANCHISE BE DELIVERED TOGETHER WITH THE DISCLOSURE DOCUMENT."
b. All appendices to the Disclosure Document are hereby amended to include the following provision: "SECTION 31125 OF THE FRANCHISE INVESTMENT LAW REQUIRES US TO GIVE YOU A DISCLOSURE DOCUMENT APPROVED BY THE COMMISSIONER OF FINANCIAL PROTECTION AND INNOVATION BEFORE WE ASK YOU TO CONSIDER A MATERIAL MODIFICATION OF YOUR FRANCHISE AGREEMENT."
c. THE CBAC WEBSITE (www.cbac.com) HAS NOT BEEN REVIEWED OR APPROVED BY THE CALIFORNIA DEPARTMENT OF FINANCIAL PROTECTION AND INNOVATION. ANY COMPLAINTS CONCERNING THE CONTENT OF THIS WEBSITE MAY BE DIRECTED TO THE CALIFORNIA DEPARTMENT OF FINANCIAL PROTECTION AND INNOVATION AT www.dfpi.ca.gov.
d. Item 3 of the Disclosure Document is supplemented by the addition of the following paragraph: "No person identified in Item 2 above is subject to any currently effective order of any national securities association or national securities exchange, as defined in the Securities Exchange Act of 1934, 15 U.S.C.A. 78a et seq., suspending or expelling these persons from membership in such association or exchange."
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Item 6 of the Disclosure Document is amended by adding the following to the Remarks in the "Late Fee and Interest on Overdue Payments" section: "The maximum allowable interest rate in California is 10% per annum."
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Item 17 of the Disclosure Document and the Agreement are hereby amended to include the following paragraph: "California Business and Professions Code Sections 20000 through 20043 provides rights to the franchisee concerning termination, transfer or nonrenewal of a franchise.
If the franchise agreement contains a provision that is inconsistent with the law, the law will control."
Source: Item 22 — CONTRACTS (FDD page 76)
What This Means (2025 FDD)
According to the 2025 Christian Brothers Automotive FDD, the California Commissioner requires specific amendments to the franchise documents to ensure compliance with California law, specifically the California Franchise Relations Act.
The required amendments include adding a provision to all appendices of the Disclosure Document stating that a copy of all proposed agreements relating to the sale of the franchise must be delivered with the disclosure document. Additionally, all appendices must include a statement that Section 31125 of the Franchise Investment Law requires Christian Brothers Automotive to provide a disclosure document approved by the Commissioner of Financial Protection and Innovation before asking a franchisee to consider a material modification of their franchise agreement. The FDD also states that the Christian Brothers Automotive website has not been reviewed or approved by the California Department of Financial Protection and Innovation, and any complaints about the website's content may be directed to that department.
Furthermore, Item 3 of the Disclosure Document must be supplemented to state that no person identified in Item 2 is subject to any currently effective order of any national securities association or national securities exchange suspending or expelling them from membership. Item 6 must be amended to state that the maximum allowable interest rate in California is 10% per annum in the "Late Fee and Interest on Overdue Payments" section. Finally, Item 17 of the Disclosure Document and the Agreement must be amended to include a paragraph stating that California Business and Professions Code Sections 20000 through 20043 provides rights to the franchisee concerning termination, transfer, or nonrenewal of a franchise, and if the franchise agreement contains a provision inconsistent with the law, the law will control.