Is the Christian Brothers Automotive franchise license exclusive or non-exclusive?
Christian_Brothers_Automotive Franchise · 2025 FDDAnswer from 2025 FDD Document
CONTAINED HEREIN AND FOR OTHER GOOD AND VALUABLE
CONSIDERATION, THE RECEIPT AND SUFFICIENCY OF WHICH IS HEREBY
ACKNOWLEDGED, FRANCHISOR AND FRANCHISEE AGREE AS FOLLOWS:
- GRANT OF FRANCHISE AND LICENSE.
1.01 Grant of Franchise. Franchisor hereby grants to Franchisee, and Franchisee accepts, a non-
exclusive license to operate one (1) Christian Brothers Automotive Corporation franchise
(the "Franchised Business") and, to use solely in connection therewith, the Know-How and
System (as they may be changed or developed from time to time), in the Territory (as
defined in Section 2.01 hereof) pursuant to the terms of this Agreement.
1.02 Grant of License to Use Marks. Franchisor grants to Franchisee, and Franchisee accepts,
a nonexclusive license to use and display the Marks in connection with the operation of the
Franchised Business, and the Services (as defined below) in and only in the Territory
described below pursuant to the terms of this Agreement. "Services" shall mean the
services authorized by Franchisor to be offered or provided by Franchisee in connection
with the Franchised Business, including the sale of products authorized by Franchisor.
Franchise Agreement (Ver 04-14-2025)
Franchisee: ___________
Franchisor: Christian Brothers Automotive Corporation
- TERRITORY.
2.01 Territorial Grant. The territory granted to Franchisee by Franchisor which is subject to the
terms of this Agreement shall be the area designated on Exhibit "A" attached to this
Agreement (the "Territory"). Except as expressly provided to the contrary herein,
Franchisee shall have the sole and exclusive right to solicit the sale of the Services within
the Territory.
2.02 Franchisor Restrictions. Franchisor will not operate a Franchisor-owned outlet of the type
franchised hereunder or grant a franchise for the operation of a similar or competitive
business in the Territory, except as provided in Section 2.04 of this Agreement ("Rights
Reserved By Franchisor").
2.03 Franchisee Restrictions. During the term hereof, Franchisee's rights hereunder shall be
limited to offering and selling only the Services in the Territory, in accordance with the
terms of this Agreement. Franchisee shall not, without Franchisor's express written
consent, solicit, sell or perform any Services outside the Territory. Should Franchisee
receive an inquiry 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.
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 granted is non-exclusive. Specifically, the franchisee receives a non-exclusive license to operate a Christian Brothers Automotive franchise within a defined territory and to use the brand's intellectual property, including trademarks, know-how, and systems. This means that Christian Brothers Automotive retains the right to operate or franchise other businesses, potentially even similar ones, under different brands or systems without any obligation to the franchisee. However, Christian Brothers Automotive agrees not to operate a company-owned outlet or grant a franchise for a similar or competitive business within the franchisee's territory, with some exceptions as detailed in Section 2.04 of the agreement.
Despite the non-exclusive nature of the license, the franchisee is granted the "sole and exclusive right" to solicit sales within their designated territory. This implies that while Christian Brothers Automotive could theoretically operate other businesses or franchises outside of the Christian Brothers Automotive brand, they cannot solicit customers for those businesses within the franchisee's territory. The franchisee is restricted to offering and selling only the services approved by Christian Brothers Automotive within their territory and cannot solicit or perform services outside of it without written consent.
Christian Brothers Automotive also retains significant rights regarding the use of its marks. The franchisee's right to use the marks is limited and nonexclusive, and Christian Brothers Automotive reserves the right to use the marks themselves, grant other licenses, and develop other systems using similar marks. The franchisee is prohibited from using the marks in connection with any unauthorized product or service and must obtain prior written approval for any online use of the marks. This ensures that Christian Brothers Automotive maintains control over its brand and can adapt its strategies as needed without being overly restricted by individual franchise agreements.