In the event of a dispute with Christian Brothers Automotive, what method of resolution is required?
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)
The 2025 Christian Brothers Automotive Franchise Disclosure Document does not explicitly state the required method of dispute resolution, such as arbitration or mediation. However, it does specify that lawsuits brought by Christian Brothers Automotive to enforce its rights under a Letter Agreement must be brought 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 to resolve disputes arising from the Letter Agreement or any alleged breach. This Letter Agreement is governed by Texas law, which prevails in the event of any conflict of law.
For franchisees in Maryland and Minnesota, certain amendments to the franchise agreement address waivers and acknowledgments. Specifically, no statement or acknowledgment signed by a franchisee can waive claims under state franchise law, including fraud in the inducement, or disclaim reliance on statements made by Christian Brothers Automotive or its representatives. These provisions supersede any conflicting terms in other documents.
Prospective franchisees should note that while the FDD outlines where Christian Brothers Automotive can bring a lawsuit, it does not detail the process for resolving disputes initiated by the franchisee. It is important for potential franchisees to seek clarification from Christian Brothers Automotive regarding the specific dispute resolution methods, such as mediation or arbitration, that would be required in other circumstances. Understanding these procedures is crucial for assessing the potential costs and time involved in resolving conflicts.