What California law governs the franchise relationship for Christian Brothers Automotive franchisees?
Christian_Brothers_Automotive Franchise · 2025 FDDAnswer from 2025 FDD Document
Section 31512 might void a waiver of your rights under the Franchise Investment Law (California Corporations Code Section 31000 – 31516).
Business and Professions Code Section 20010 might void a waiver of your rights under the Franchise Relations Act (Business and Professions Code Sections 20000 – 20043).
- m. No statement, questionnaire, or acknowledgment signed or agreed to by a franchisee in connection with the commencement of the franchise relationship shall have the effect of (i) waiving any claims under any applicable state franchise law, including fraud in the inducement, or (ii) disclaiming reliance on any statement made by any franchisor, franchise seller, or other person acting on behalf of the franchisor. This provision supersedes any other term of any document executed in connection with the franchise.
- n. Any provision of a franchise agreement, franchise disclosure document, acknowledgement, questionnaire, or other writing, including any exhibit thereto, disclaiming or denying any of the following shall be deemed contrary to public policy and shall be void and unenforceable:
- (a) Representations made by the franchisor or its personnel or agents to a prospective franchisee.
- (b) Reliance by a franchisee on any representations made by the franchisor or its personnel or agents.
- (c) Reliance by a franchisee on the franchise disclosure document, including any exhibit thereto.
- (d) Violations of any provision of this division.
Source: Item 22 — CONTRACTS (FDD page 76)
What This Means (2025 FDD)
According to the 2025 Christian Brothers Automotive Franchise Disclosure Document, two California laws may affect the franchise relationship. The Franchise Investment Law (California Corporations Code Section 31000 – 31516) is referenced, with Section 31512 potentially voiding any waiver of rights under this law. Additionally, the Franchise Relations Act (Business and Professions Code Sections 20000 – 20043) is mentioned, with Business and Professions Code Section 20010 possibly voiding waivers of rights under that act.
These stipulations mean that certain clauses or agreements within the franchise agreement that might seem to waive a franchisee's rights under these California laws could be deemed invalid. This is designed to protect franchisees from unknowingly relinquishing legal protections afforded to them under California state law.
Christian Brothers Automotive also states that any provision disclaiming representations made by the franchisor, reliance on those representations by the franchisee, or violations of the division are against public policy and unenforceable. This ensures franchisees can rely on information provided by Christian Brothers Automotive and the FDD itself.
Prospective franchisees in California should carefully review these sections with a legal professional to fully understand their rights and protections under California franchise law. It is important to understand which specific provisions of the franchise agreement might be affected and how these protections could impact their investment and operation of a Christian Brothers Automotive franchise.