In the event of a conflict of laws, which law prevails for a Christian Brothers Automotive franchise?

According to the 2025 Christian Brothers Automotive Franchise Disclosure Document, the laws of Texas govern the Letter Agreement. Specifically, in the event of any conflict of law, the laws of Texas prevail, without regard to, and without giving effect to, the application of Texas conflict of law rules.

This means that the interpretation and enforcement of the Letter Agreement will be based on Texas law, regardless of where the franchisee is located or any potential conflicts with other state laws. This is a common practice in franchising, as it provides the franchisor with a consistent legal framework across all franchise locations.

However, the FDD also includes amendments for franchisees in specific states like New York, Maryland, Minnesota, California, and Illinois, which modify the agreement to comply with local franchise laws. For example, these amendments often include provisions that protect a franchisee's rights under state franchise laws, prevent waivers of claims, and ensure compliance with state-specific disclosure requirements. Therefore, while Texas law generally governs the Letter Agreement, state-specific amendments may take precedence in certain situations to protect the franchisee's rights under local laws.