Does the Christian Brothers Automotive Franchise Disclosure Document include a General Release Agreement?
Christian_Brothers_Automotive Franchise · 2025 FDDAnswer from 2025 FDD Document
[Item 22: CONTRACTS]
EXHIBIT I GENERAL RELEASE
The following is Christian Brothers Automotive Corporation current general release agreement that Christian Brothers Automotive Corporation may require a Franchisee and/or transferor to sign as part of a renewal, an approved transfer or a termination.
THIS RELEASE AGREEMENT (this "Agreement") is made and entered into as of the day of, 20 (the "Effective Date"), by and between Christian Brothers Automotive Corporation, a Texas corporation ("CBAC") and, a ("Franchisee").
RECITALS
WHEREAS, Franchisee is a party to that certain Franchise Agreement executed between Franchisee and Franchisor, dated on or about ____________________ (such Franchise Agreement, together with all exhibits, amendments and addendums thereto, being collectively referred to in this Agreement as the "Franchise Agreement"), pursuant to which Franchisee was granted the right to operate a Christian Brothers Automotive business at __________________________________________.
NOW, THEREFORE, for and in consideration of the premises and the mutual promises and covenants contained herein, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto, intending to be legally bound, hereby agree as follows:
Source: Item 22 — CONTRACTS (FDD page 76)
What This Means (2025 FDD)
According to Christian Brothers Automotive's 2025 Franchise Disclosure Document, a General Release Agreement is included as Exhibit I. The document states that Christian Brothers Automotive may require a franchisee and/or transferor to sign this agreement as part of a renewal, an approved transfer, or a termination.
The General Release Agreement is a legally binding contract between Christian Brothers Automotive Corporation and the franchisee. It includes recitals that acknowledge the franchisee's existing Franchise Agreement and their right to operate a Christian Brothers Automotive business at a specific location.
This agreement requires careful review, as it can impact a franchisee's rights and obligations during renewal, transfer, or termination scenarios. Prospective franchisees should seek legal counsel to fully understand the implications of signing such a release, especially concerning their rights and potential liabilities.