Does the Christian Brothers Automotive franchise agreement require the commission of any act contrary to law?
Christian_Brothers_Automotive Franchise · 2025 FDDAnswer from 2025 FDD Document
supply. Franchisee agrees that Franchisor
may modify the specifications for all equipment and supplies and qualifications for all
service providers from time to time in its sole and exclusive discretion.
10.03 Compliance With this Agreement, Laws, Rules and Regulations. Franchisee will:
(a) comply with the terms and conditions included in this Agreement;
(b) operate the Franchised Business in strict compliance with all applicable laws, rules
and regulations of all governmental authorities;
(c) comply with all applicable wage, hour and other laws and regulations of federal,
state and/or local governments;
(d) prepare and file all necessary tax returns and pay all taxes imposed upon
Franchisee, Franchised Business, and Franchisee's property; and
(e) obtain and keep in good standing all necessary licenses, permits or other required
forms of governmental approval required of Franchisee to offer and sell those
products and services which are part of the System or which may, in the future, be
made a part of the System.
10.04 Franchisee and Principal Operator Participation in and Responsibility for the Operation of
the Franchised Business. Although Franchisor retains the right to establish and periodically
modify the System, which Franchisee has agreed to implement and maintain in the
Franchise Agreement (Ver 04-14-2025)
Franchisee: ___________
Franchisor: Christian Brothers Automotive Corporation
operation of the Franchised Business, Franchisee retains the right and sole responsibility
for the day-to-day management and operation of the Franchised Business and the
implementation and maintenance of System standards at the Franchised Business.
Franchisee acknowledges that it is solely responsible for all aspects of the Franchised
Business's operations, including employee and human resources matters. Franchisee
further acknowledges that any controls implemented by Franchisor are for the protection
of the System and the Marks and not to exercise any control over the day-to-day operation
of the Franchised Business.
Source: Item 23 — RECEIPTS (FDD pages 76–372)
What This Means (2025 FDD)
According to Christian Brothers Automotive's 2025 Franchise Disclosure Document, the franchise agreement explicitly requires franchisees to operate their businesses in compliance with all applicable laws, rules, and regulations. This includes adhering to wage and hour laws, preparing and filing necessary tax returns, and obtaining and maintaining all required licenses and permits. Franchisees are also responsible for ensuring their employees comply with all applicable federal, state, and local laws, rules, and regulations related to employment.
Christian Brothers Automotive also emphasizes the importance of protecting customer information and complying with all applicable privacy laws. Franchisees must maintain reasonable safeguards for customer information and refrain from any actions that could cause Christian Brothers Automotive to breach any privacy laws. The agreement specifies that franchisees will indemnify and defend Christian Brothers Automotive from any losses arising from the theft, loss, or misuse of customer information or any breach of privacy laws.
Furthermore, the Principal Operator of the franchise is responsible for ensuring the daily operations comply with all legal requirements, the franchise agreement, and the Confidential Operations Manual. The agreement also states that franchisees, their Principal Operators, and their spouses agree not to campaign for or hold any public office. Overall, the Christian Brothers Automotive franchise agreement focuses on adherence to legal and regulatory standards, rather than mandating any unlawful actions.