How will disputes between parties related to the agreement with Christian Brothers Automotive be resolved?
Christian_Brothers_Automotive Franchise · 2025 FDDAnswer from 2025 FDD Document
You agree that any lawsuit brought by CBAC to enforce its rights under this Letter Agreement shall be brought in the courts of the county where CBAC has its then current principal place of business, and you agree and consent to the jurisdiction of such court to resolve all disputes which arise out of this Letter Agreement or any alleged breach thereof, regardless of your residency at the time such lawsuit is filed.
This Letter Agreement shall be governed by the laws of the State of Texas.
In the event of any conflict of law, the laws of Texas shall prevail, without regard to, and without giving effect to, the application of Texas conflict of law rules.
Source: Item 22 — CONTRACTS (FDD page 76)
What This Means (2025 FDD)
Based on the 2025 Franchise Disclosure Document, the Franchise Agreement with Christian Brothers Automotive specifies that lawsuits brought by Christian Brothers Automotive to enforce its rights under the Letter Agreement must be initiated in the courts of the county where Christian Brothers Automotive has its principal place of business. Franchisees agree and consent to the jurisdiction of that court for resolving disputes arising from the Letter Agreement or any alleged breach, regardless of the franchisee's residency when the lawsuit is filed. The Letter Agreement is governed by Texas law, which prevails in case of any conflict of law, without regard to Texas conflict of law rules.
For a prospective franchisee, this means that if Christian Brothers Automotive initiates a lawsuit to enforce its rights under the Letter Agreement, the franchisee may be required to litigate the matter in the county where Christian Brothers Automotive's principal place of business is located, which may be inconvenient for franchisees residing in other states. The application of Texas law could also impact the outcome of disputes, depending on the specific legal issues involved and how Texas law compares to the laws of the franchisee's state of residence.
It is important for potential franchisees to seek legal counsel to fully understand the implications of these provisions, including the specific venue and choice of law clauses, and how they might affect their rights and obligations under the Letter Agreement and Franchise Agreement with Christian Brothers Automotive. Understanding these dispute resolution mechanisms is a crucial part of assessing the overall risk and benefits of investing in a Christian Brothers Automotive franchise.