What does the Christian Brothers Automotive franchise agreement refer to as 'Rights Reserved By Franchisor'?
Christian_Brothers_Automotive Franchise · 2025 FDDAnswer from 2025 FDD Document
or request for the performance of any Services outside of the Territory,
it must promptly refer such customer to the Franchisor or to any franchisee of Franchisor
to whom such territory has been assigned.
2.04 Rights Reserved by Franchisor. The Franchisor has the right to grant other franchises
outside of the Territory as Franchisor deems appropriate. Franchisor reserves the right to
offer and sell at wholesale all products which comprise, or may in the future comprise a
part of the Services and System, which products may be resold at retail to the general public
by Franchisor both within and outside of the Territory.
Source: Item 23 — RECEIPTS (FDD pages 76–372)
What This Means (2025 FDD)
According to the 2025 Christian Brothers Automotive Franchise Disclosure Document, 'Rights Reserved By Franchisor' refers to specific rights that Christian Brothers Automotive retains, even after awarding a franchise to a franchisee.
Specifically, Christian Brothers Automotive retains the right to grant other franchises outside of a franchisee's designated territory as the company deems appropriate. This means that while a franchisee has an exclusive or sole right to solicit sales within their territory, Christian Brothers Automotive is not restricted from expanding its franchise network in other areas.
Additionally, Christian Brothers Automotive reserves the right to sell all products that are part of the Services and System at wholesale. These products can then be resold at retail to the general public by Christian Brothers Automotive, both within and outside the franchisee's territory. Christian Brothers Automotive also retains the right to sell at both wholesale and retail all products and services that do not comprise a part of the System, both within and outside of the franchisee's territory. This could include different types of products or services that Christian Brothers Automotive might introduce in the future that are not part of the standard franchise offering.