Can Christian Brothers Automotive discontinue the provision of software to franchisees?
Christian_Brothers_Automotive Franchise · 2025 FDDAnswer from 2025 FDD Document
(d) Software Fees. Franchisor may provide Franchisee with certain software, including, without limitation, point-of-sale software, accounting software, and internet failover software, in return for fees to be established in Franchisor's discretion and set forth in the Confidential Operations Manual or otherwise in writing, and payable by Franchisee. Related to the foregoing, Franchisor may further charge Franchisee for annual licensing or maintenance fees established in Franchisor's discretion and set forth in the Confidential Operations Manual or otherwise in writing, and payable by Franchisee. All fees and charges paid in accordance with this Section 4.03(d) are non-refundable, and subject to change in Franchisor's sole discretion. Franchisor may modify any such software it provides or discontinue the provision of such software at any time.
Source: Item 23 — RECEIPTS (FDD pages 76–372)
What This Means (2025 FDD)
According to the 2025 Christian Brothers Automotive Franchise Disclosure Document, Christian Brothers Automotive has the right to discontinue providing software to franchisees. Specifically, Christian Brothers Automotive may provide software such as point-of-sale, accounting, and internet failover software, in return for fees from the franchisee. These fees are established at Christian Brothers Automotive's discretion and are detailed in the Confidential Operations Manual or in writing. These fees are non-refundable and subject to change at Christian Brothers Automotive's sole discretion.
Christian Brothers Automotive retains the right to modify or discontinue the provision of any software at any time. This means that while franchisees may rely on certain software to run their business, Christian Brothers Automotive can change or stop providing that software.
For a prospective franchisee, this indicates a potential risk. If Christian Brothers Automotive discontinues a critical software, the franchisee may need to find and pay for alternative solutions, potentially impacting their operational efficiency and profitability. It is important for a prospective franchisee to understand what software Christian Brothers Automotive currently provides, the costs associated with it, and the potential implications if that software is discontinued.