What is the document referred to as the 'Agreement' in the context of a Christian Brothers Automotive franchise?
Christian_Brothers_Automotive Franchise · 2025 FDDAnswer from 2025 FDD Document
LINOIS
| The Christian Brothers Automotive Corporation Disclosure Document (the "Disclosure | |
|---|---|
| Document") and Franchise Agreement between ("Franchisee") and Christian | |
| Brothers Automotive Corporation, a Texas corporation ("CBAC"), dated, | |
| 20 (the "Agreement") shall be amended by the addition of the following language, which shall | |
| be considered an integral part of the Disclosure Document and Agreement (this "Amendment"): |
ILLINOIS LAW MODIFICATIONS
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- The Illinois Attorney General requires that certain provisions contained in franchise documents be amended to be consistent with Illinois law, including the Franchise Disclosure Act of 1987, 815 ILCS 705/1 – 705/44 (the "Act"), specifically section 705/41 of the Act. To the extent that the Disclosure Document and/or Agreement contain provisions that are inconsistent with the following, such provisions are hereby amended:
- a. The Agreement requires the Franchisee to execute a release of claims or to acknowledge facts that would negate or remove from judicial review any statement, misrepresentation or action of CBAC that would violate the Act, or a rule or order under the Act. Such release shall exclude claims arising under the Act, and such acknowledgments shall be void with respect to claims under the Act. Section 41 of the Act states that any condition, stipulation, or provision (in our Agreement) purporting to waive compliance with any provision of this Act or any other law of this State is void.
- b. The Agreement and Item 17 of the Disclosure Document designate a jurisdiction, forum and venue and choice of law outside of Illinois. This requirement shall not be interpreted to limit any rights that Franchisee may have under Sec. 705/4 of the Act, to bring suit in the state of Illinois. Applicable sections of the Franchise Agreement and Item 17v and 17w of the Disclosure Document are hereby amended to indicate Illinois as the governing law and choice of forum.
- c. The Agreement contains certain provisions regarding termination and non-renewal of franchise and notice and opportunity to cure. To the extent any provision of the Agreement and/or the Disclosure Document are inconsistent with Sections 705/19 - 705/20 of the Act, those provisions of the Agreement and/or Disclosure Document are hereby amended accordingly.
- d. Exhibit G of the Agreement, titled "Franchisee Disclosure Acknowledgment Statement," is hereby deleted and shall have no force or effect.
- e. No statement, questionnaire, or acknowledgment signed or agreed to by a franchisee in connection with the commencement of the franchise relationship shall have the effect of (i) waiving any claims under any applicable state franchise law, including fraud in the inducement, or (ii) disclaiming reliance on any statement made by any franchisor, franchise seller,
IN WITNESS WHEREOF, the parties hereto have fully executed, sealed and delivered this Amendment to the Disclosure Document and Agreement on the ___ day of ______________, 20__. FRANCHISOR:
or other person acting on behalf of the franchisor.
Source: Item 22 — CONTRACTS (FDD page 76)
What This Means (2025 FDD)
According to the 2025 Christian Brothers Automotive Franchise Disclosure Document, the term "Agreement" can refer to multiple documents depending on the context. Primarily, it refers to the Franchise Agreement itself, which is the core contract between the franchisee and Christian Brothers Automotive Corporation. This agreement grants the franchisee the right to operate a Christian Brothers Automotive business.
However, the term "Agreement" also appears in the context of amendments to the Disclosure Document and Franchise Agreement, particularly when state laws require modifications. For example, amendments for states like Minnesota, New York, Indiana, and Virginia are explicitly referred to as amendments to both the Disclosure Document and the Franchise Agreement, with the entire package being termed the "Agreement." These amendments are considered integral parts of both the Disclosure Document and the Franchise Agreement.
Additionally, a "Release Agreement" may be required as part of a renewal, transfer, or termination, and this is also referred to as "this Agreement." This Release Agreement is made between Christian Brothers Automotive Corporation and the franchisee and references the original Franchise Agreement. Therefore, prospective franchisees should pay close attention to the specific context to understand which "Agreement" is being referenced, as it could be the original Franchise Agreement, a state-specific amendment, or a general release agreement.