factual

For Christian Brothers Automotive, what is the definition of 'Franchisor' in the context of the Acknowledgment Statement?

Christian_Brothers_Automotive Franchise · 2025 FDD

Answer 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 Christian Brothers Automotive's 2025 Franchise Disclosure Document, the 'Franchisor' in the Franchisee Disclosure Acknowledgment Statement refers to Christian Brothers Automotive Corporation. The acknowledgment statement is used to confirm that the prospective franchisee understands 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.

Christian Brothers Automotive uses this statement to ascertain that the franchisee understands the risks involved and isn't basing their decision on unverified information. However, this acknowledgment doesn't waive any liability the franchisor may have under the Washington Franchise Investment Protection Act. This is to ensure that franchisees are making informed decisions and are aware of the documented information provided by Christian Brothers Automotive.

Prospective franchisees should carefully review the Franchise Disclosure Document and all related agreements. They should also consult with an attorney or financial advisor to fully understand the implications of the franchise agreement and the acknowledgment statement before signing.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.