For Christian Brothers Automotive, what is the definition of 'Franchise Agreement' 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.
Source: Item 22 — CONTRACTS (FDD page 76)
What This Means (2025 FDD)
According to the 2025 Christian Brothers Automotive Franchise Disclosure Document, the Franchise Agreement is the agreement that the franchisor, Christian Brothers Automotive Corporation, and the franchisee are preparing to enter into. This agreement is for the establishment and operation of a Christian Brothers Automotive Corporation franchise, referred to as a "CBAC franchise."
The Acknowledgment Statement is used by Christian Brothers Automotive to confirm that the prospective franchisee understands that purchasing a franchise is a business decision with associated risks. It also verifies that the franchisee is not relying on any unauthorized oral statements, representations, promises, or assurances made during negotiations that were not disclosed in the Franchise Disclosure Document.
This acknowledgment is important for protecting Christian Brothers Automotive from potential misrepresentation claims. However, it's crucial to note that 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. This ensures that franchisees in Washington retain their legal rights despite signing the acknowledgment.