For Christian Brothers Automotive, on what date does the agreement become effective, regardless of the execution date?
Christian_Brothers_Automotive Franchise · 2025 FDDAnswer from 2025 FDD Document
ation.
THIS RELEASE AGREEMENT (this "Agreement") is made and entered into as of the day of, 20 (the "Effective Date"), by and between Christian Brothers Automotive Corporation, a Texas corporation ("CBAC") and, a ("Franchisee").
RECITALS
WHEREAS, Franchisee is a party to that certain Franchise Agreement executed between Franchisee and Franchisor, dated on or about _________________ (such Franchise Agreement, together with all exhibits, amendments and addendums thereto, being collectively referred to in this Agreement as the "Franchise Agreement"), pursuant to which Franchisee was granted the right to operate a Christian Brothers Automotive business at ____________________________.
NOW, THEREFORE, for and in consideration of the premises and the mutual promises and covenants contained herein, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto, intending to be legally bound, hereby agree as follows:
With the exception of the Continuing Obligations, CBAC and Franchisee hereby release, relinquish, discharge and waive any and all claims, demands, actions, causes of actions, suits, debts, costs, dues, sums of money, accounts, covenants, contracts, controversies, agreements, promises, trespasses, dama
Source: Item 22 — CONTRACTS (FDD page 76)
What This Means (2025 FDD)
According to the 2025 Christian Brothers Automotive Franchise Disclosure Document, several agreements and amendments refer to an "Effective Date," which determines when the agreement is considered active. However, the specific date is not pre-defined within the standard clauses and is instead marked by a blank space to be filled in upon execution.
For instance, the General Release agreement states that it is made and entered into as of the "day of , 20 (the 'Effective Date')." Similarly, the Transaction Fee Agreement indicates that it is made and entered into as of "(the 'Effective Date')." Amendments to the Disclosure Document and Franchise Agreement for states like New York, Maryland, Minnesota, and Indiana also follow this pattern, noting that the agreement is dated " , 20 (the 'Agreement')."
This approach means the effective date is determined on a case-by-case basis when the documents are finalized and signed. Prospective Christian Brothers Automotive franchisees should pay close attention to these dates when signing agreements, as they mark the commencement of their contractual obligations and rights.