What does the Christian Brothers Automotive franchise agreement consider as sufficient consideration for the agreement?
Christian_Brothers_Automotive Franchise · 2025 FDDAnswer from 2025 FDD Document
NOW, THEREFORE, FOR AND IN CONSIDERATION OF THE COVENANTS AND AGREEMENTS CONTAINED HEREIN AND FOR OTHER GOOD AND VALUABLE CONSIDERATION, THE RECEIPT AND SUFFICIENCY OF WHICH IS HEREBY ACKNOWLEDGED, FRANCHISOR AND FRANCHISEE AGREE AS FOLLOWS:
Source: Item 23 — RECEIPTS (FDD pages 76–372)
What This Means (2025 FDD)
According to the 2025 Christian Brothers Automotive Franchise Disclosure Document, the franchise agreement is based on the covenants and agreements outlined within the document, along with other valuable considerations. The receipt and sufficiency of these considerations are acknowledged by both Christian Brothers Automotive and the franchisee. This means that both parties agree that what they are giving and receiving is adequate to support the agreement.
In simpler terms, the "consideration" includes the promises each party makes to the other in the franchise agreement. For Christian Brothers Automotive, this involves granting the franchisee a license to operate under their brand, providing access to their system, know-how, and marks, and offering support. For the franchisee, this includes agreeing to operate the business according to Christian Brothers Automotive's standards, paying fees, and upholding the brand's reputation. The mutual promises and benefits form the basis of the agreement.
This clause is standard in franchise agreements. It ensures that there is a legal basis for the contract, with each party receiving something of value. Prospective Christian Brothers Automotive franchisees should carefully review the entire franchise agreement to understand all the covenants, agreements, and obligations they are undertaking, as these constitute part of the consideration for the franchise.