What is the dependency for CBAC's consent to the assignment of the Assigned Interest in the Christian Brothers Automotive agreement?

According to the 2025 Christian Brothers Automotive Franchise Disclosure Document, Christian Brothers Automotive's consent to the assignment of the Assigned Interest is contingent upon certain conditions. Specifically, Christian Brothers Automotive requires the Assignee to agree to assume all liabilities, duties, and obligations of the Assignor under the Franchise Agreement related to the Assigned Interest. Additionally, both the Assignor and Assignee must comply with all the terms and conditions outlined in the Assignment and Assumption Agreement. Finally, the Assignee must agree to enter into a Restated Franchise Agreement with Christian Brothers Automotive.

These stipulations ensure that the new franchisee, or Assignee, is fully committed to upholding the original franchise agreement's responsibilities and obligations. This protects Christian Brothers Automotive's interests and maintains consistency across its franchise network. The requirement for a Restated Franchise Agreement further allows Christian Brothers Automotive to update the agreement to current standards and practices, ensuring that the franchise operates under the most relevant and effective terms.

For a prospective franchisee, this means that if they are looking to acquire an existing Christian Brothers Automotive franchise, they must be prepared to meet these conditions to secure the franchisor's approval. This includes a thorough review and acceptance of the existing obligations, adherence to the assignment agreement terms, and willingness to sign a new franchise agreement with updated terms. Understanding these requirements is crucial for a smooth transition and continued operation of the franchise under the Christian Brothers Automotive brand.