Can Christian Brothers Automotive decline to purchase land approved by the franchisee?
Christian_Brothers_Automotive Franchise · 2025 FDDAnswer from 2025 FDD Document
CBAC may not be able to purchase Land that you approve and CBAC has agreed to attempt to acquire. CBAC has the right to decline to purchase any Land for any reason whatsoever. CBAC agrees to notify you in writing if it determines, for any reason, that it will not purchase the Land. CBAC will then give you the option of either (a) choosing another location where CBAC is willing to attempt to acquire Land where your franchise will operate, or (b) terminating your relationship with CBAC and having your Down Payment (minus the $13,500 portion which is non-refundable) refunded to you.
Source: Item 5 — INITIAL FEES (FDD pages 14–17)
What This Means (2025 FDD)
According to Christian Brothers Automotive's 2025 Franchise Disclosure Document, Christian Brothers Automotive has the right to decline to purchase land approved by the franchisee for any reason. However, Christian Brothers Automotive agrees to notify the franchisee in writing if it decides not to purchase the land.
If Christian Brothers Automotive declines to purchase the land, the franchisee has two options. The franchisee can choose another location where Christian Brothers Automotive is willing to attempt to acquire land. Alternatively, the franchisee can terminate their relationship with Christian Brothers Automotive and receive a refund of their down payment, minus the $13,500 non-refundable portion.
This clause protects Christian Brothers Automotive from being forced to purchase land that it deems unsuitable for a franchise location. It also provides the franchisee with options if Christian Brothers Automotive declines to purchase the land they have approved, allowing them to either find an alternative location or exit the agreement with a partial refund. Prospective franchisees should carefully consider these terms and discuss site selection criteria with Christian Brothers Automotive to understand the factors that may influence their decision to approve or decline a particular location.