What does Exhibit D of the Christian Brothers Automotive FDD contain?
Christian_Brothers_Automotive Franchise · 2025 FDDAnswer from 2025 FDD Document
The following language is added as a new Section 18 of Exhibit D (Store In Distress Support Program Agreement) of the Agreement:
All representations requiring prospective franchisees to assent to a release, estoppel or waiver of liability are not intended to nor shall they act as a release, estoppel or waiver of any liability incurred under the Maryland Franchise Registration and Disclosure Law.
Source: Item 22 — CONTRACTS (FDD page 76)
What This Means (2025 FDD)
According to the 2025 Christian Brothers Automotive FDD, Exhibit D contains the Store In Distress Support Program Agreement. In the state of Maryland, the following language is added as a new Section 18 of Exhibit D: All representations requiring prospective franchisees to assent to a release, estoppel or waiver of liability are not intended to nor shall they act as a release, estoppel or waiver of any liability incurred under the Maryland Franchise Registration and Disclosure Law. This amendment ensures that franchisees in Maryland retain their rights under the state's franchise laws, preventing any waivers of liability related to the Maryland Franchise Registration and Disclosure Law.
This provision specifically addresses acknowledgments and waivers within the Store In Distress Support Program Agreement, clarifying that these do not release Christian Brothers Automotive from liabilities under Maryland franchise law. This is particularly relevant for franchisees who may require support due to financial or operational difficulties, ensuring they are not inadvertently forfeiting legal protections. The inclusion of such stipulations reflects a commitment to compliance with state-specific regulations and protection of franchisee rights.
For a prospective Christian Brothers Automotive franchisee in Maryland, this means that any agreements or acknowledgments signed as part of the Store In Distress Support Program will not waive their rights under the Maryland Franchise Registration and Disclosure Law. This offers an additional layer of protection, ensuring that franchisees can seek legal recourse if they believe their rights have been violated, even if they have participated in the support program. This is a beneficial provision that promotes transparency and fairness in the franchise relationship, especially during challenging times.