Can Christian Brothers Automotive contest the validity of laws or regulations related to the franchise agreement?
Christian_Brothers_Automotive Franchise · 2025 FDDAnswer from 2025 FDD Document
14.04 Notice Required by Law. Notwithstanding anything to the contrary contained in this Section 14, if applicable law or regulation limits Franchisor's rights of rescission or termination or requires longer notice periods than those set forth above, this Agreement shall be deemed amended to conform to the minimum notice periods or restrictions upon rescission or termination required by such laws and regulations. Franchisor shall not, however, be precluded from contesting the validity, enforceability or application of such laws or regulations in any action, arbitration, hearing or dispute relating to this Agreement or the rescission or termination thereof.
Source: Item 23 — RECEIPTS (FDD pages 76–372)
What This Means (2025 FDD)
According to the 2025 Christian Brothers Automotive Franchise Disclosure Document, Christian Brothers Automotive retains the right to contest the validity, enforceability, or application of laws or regulations that may impact the franchise agreement. This right is not limited by any notice periods or restrictions on rescission or termination that may be required by applicable law or regulation.
This means that even if a law or regulation seems to limit Christian Brothers Automotive's ability to terminate or rescind the agreement, they are not prevented from challenging the law itself in a legal setting. This could include actions, arbitrations, hearings, or disputes related to the agreement's rescission or termination.
For a prospective franchisee, this clause indicates that Christian Brothers Automotive is prepared to defend its franchise agreement against legal challenges and does not automatically concede to new laws or regulations that may arise. Franchisees should be aware that the franchisor may take legal action to contest laws they believe are detrimental to the franchise agreement.