How does Christian Brothers Automotive define 'Principal Operator'?
Christian_Brothers_Automotive Franchise · 2025 FDDAnswer from 2025 FDD Document
The Principal Operator is completely responsible for assuring that the daily operations of the Franchised Business are managed so that the Franchised Business complies with all the requirements of the law, this Agreement and the Confidential Operations Manual. If Franchisee is a business entity, the Principal Operator must own or control at least fifty-one percent (51%) of the ownership interest of such business entity and must have and maintain control of the business entity for as long as such entity is the Franchisee pursuant to the terms of this Agreement. Franchisee agrees to open the Franchised Business to provide services to the public on or before five days after receipt of notice from Franchisor that the Franchised Business is operational. Franchisee, its Principal Operator, and the spouse of the Principal Operator each agree not to campaign for nor hold any public office. The failure of the Principal Operator to comply with the terms of this section will constitute a material breach of this Agreement.
Source: Item 23 — RECEIPTS (FDD pages 76–372)
What This Means (2025 FDD)
According to Christian Brothers Automotive's 2025 Franchise Disclosure Document, the Principal Operator is a key figure in ensuring the franchise operates according to legal and contractual requirements. The Principal Operator is responsible for the daily management of the Christian Brothers Automotive franchise, ensuring it complies with all laws, the franchise agreement, and the Confidential Operations Manual. This individual's role is critical for maintaining the standards and integrity of the franchise.
If the franchisee is a business entity, the Principal Operator must own or control at least 51% of the ownership interest in that entity. This requirement ensures that the Principal Operator has significant control over the business. They must maintain this level of control for as long as the entity remains the franchisee under the terms of the agreement.
Furthermore, the Principal Operator, along with their spouse, agrees not to campaign for or hold any public office. Failure to comply with this provision constitutes a material breach of the franchise agreement. This clause highlights the importance Christian Brothers Automotive places on the Principal Operator's commitment to the franchise and avoidance of potential conflicts of interest.