What are the conditions under which the franchisor of Christian Brothers Automotive will notify the franchisee of a default?

eement (Ver 04-14-2025)

Franchisee: ___________

Franchisor: Christian Brothers Automotive Corporation

nature incapable of being cured, this Agreement may be immediately terminated by

Franchisor.

14.02 Termination Without Right to Cure. Notwithstanding anything to the contrary contained

herein, Franchisee understands and agrees that the occurrence of any of the following

events, circumstances, or courses of conduct constitutes a material default under this

Agreement, and Franchisor will have the right, but not the obligation, to immediately

terminate this Agreement without giving any notice or opportunity to cure to the

Franchisee, except as specifically provided in the respective subsection:

(a) Franchisee or the Franchised Business is declared bankrupt or becomes insolvent;

or all or a substantial part of the assets thereof are assigned to or for the benefit of

any creditor; or Franchisee admits its inability to pay its debts as they become due;

or a petition in bankruptcy is filed against Franchisee which is not immediately

contested or which is not dismissed within 120 days from its filing.

(b) Franchisee fails to operate the business for five (5) consecutive days during which

the Franchisee is required to operate the business under the terms of this

Agreement.

(c) Franchisee fails to meet any Minimum Performance Requirement set forth in

Section 10.17 of this Agreement.

(d) Franchisor and the Franchisee agree in writing to terminate the Agreement.

(e) Franchisee makes any material misrepresentation relating to the acquisition of the

Franchised Business or engages in conduct which, in the exercise of Franchisor's

sole and exclusive business judgment, reflects materially and unfavorably upon the

Franchise Agreement (Ver 04-14-2025)

Franchisee: ___________

Franchisor: Christian Brothers Automotive Corporation

operation and reputation of the Franchised Business, Franchisor's reputation, the

Marks, the System, services and/or products.

(f) Franchisee knowingly makes a material misrepresentation relating to the operation

of the Franchised Business, knowingly maintains false books or records, or

knowingly submits any false statements or reports to Franchisor, including, without

limitation, any statement which knowingly results in a miscalculation of the Split

Profits.

(g) The Principal Operator accepts, receives, uses, distributes or misappropriates funds,

equipment, business assets or other resources to himself or herself personally, or

any other person, that were generated by, related to, or derived from the

Franchisee's operations. This does not include distributions of Split Profits made

in accordance with Section 4.05 herein.

Source: Item 23 — RECEIPTS (FDD pages 76–372)