For Christian Brothers Automotive, what is the definition of 'CBAC franchise' in the context of the Acknowledgment Statement?
Christian_Brothers_Automotive Franchise · 2025 FDDAnswer from 2025 FDD Document
As you know, Christian Brothers Automotive Corporation (the "Franchisor") and you are preparing to enter into a franchise agreement (the "Franchise Agreement") for the establishment and operation of a Christian Brothers Automotive Corporation franchise ("CBAC franchise"). The purpose of this Questionnaire is to determine whether any statements or promises were made to you by employees or authorized representatives of the Franchisor, or by employees or authorized representatives of a broker acting on behalf of the Franchisor ("Broker") that have not been authorized, or that were not disclosed in the Franchise Disclosure Document or that may be untrue, inaccurate or misleading. The Franchisor, through the use of this document, desires to ascertain (a) that the undersigned, individually and as a representative of any legal entity established to acquire the franchise rights, fully understands and comprehends that the purchase of a franchise is a business decision, complete with its associated risks, and (b) that you are not relying upon any oral statement, representations, promises or assurances during the negotiations for the purchase of the franchise which have not been authorized by Franchisor. This acknowledgment does not waive any liability the franchisor may have under the Washington Franchise Investment Protection Act, RCW 19.100, and the rules adopted thereunder.
In the event that you are intending to purchase an existing CBAC franchise from an existing Franchisee, you may have received information from the transferring Franchisee, who is not an employee or representative of the Franchisor. The questions below do not apply to any communications that you had with the transferring Franchisee. Please review each of the following questions and statements carefully and provide honest and complete responses to each.
Source: Item 22 — CONTRACTS (FDD page 76)
What This Means (2025 FDD)
According to Christian Brothers Automotive's 2025 Franchise Disclosure Document, a 'CBAC franchise' is defined within the context of the Franchisee Disclosure Acknowledgment Statement as a Christian Brothers Automotive Corporation franchise. This acknowledgment is part of the process where the franchisee confirms they understand that purchasing a franchise is a business decision with associated risks and that they are not relying on unauthorized oral statements or promises made during negotiations.
The Acknowledgment Statement is designed to ensure that franchisees are making informed decisions based on the information provided in the Franchise Disclosure Document (FDD) and authorized communications from Christian Brothers Automotive. It helps Christian Brothers Automotive ascertain that the franchisee understands the risks involved and is not relying on any unauthorized representations. However, this acknowledgment does not waive any liability the franchisor may have under the Washington Franchise Investment Protection Act.
Furthermore, if a prospective franchisee is purchasing an existing Christian Brothers Automotive franchise from a transferring franchisee, the acknowledgment clarifies that communications with the transferring franchisee (who is not an employee or representative of Christian Brothers Automotive) are not covered by the questions in the Acknowledgment Statement. This distinction is important because the franchisor is only responsible for the information they or their authorized representatives provide, not information from a third-party seller.