For a Christian Brothers Automotive franchise, what is the permitted use of the premises by the tenant?
Christian_Brothers_Automotive Franchise · 2025 FDDAnswer from 2025 FDD Document
WHEREAS, Franchisee has applied to obtain a license to operate one Christian Brothers Automotive Corporation franchise in the Territory described in Section 2.01 of this Agreement for the purpose of offering and selling Franchisor's services and products under the Marks, Know- How and System; and
WHEREAS, the parties wish to enter into an Agreement upon the terms and subject to the conditions set forth in this Agreement.
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:
- 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
Source: Item 23 — RECEIPTS (FDD pages 76–372)
What This Means (2025 FDD)
According to the 2025 Christian Brothers Automotive Franchise Agreement, the franchisee is granted a non-exclusive license to operate one Christian Brothers Automotive franchise within a defined territory. This license allows the franchisee to use the franchisor's established system, know-how, and trademarks solely in connection with operating the franchised business. The agreement emphasizes that the franchisee must offer and sell the franchisor's services and products under the specified marks, know-how, and system, which may evolve over time.
The permitted use of the premises is explicitly for operating a Christian Brothers Automotive franchise. The franchisee is obligated to adhere to the franchisor's standards and guidelines in running the business. Any deviation from this, such as selling unauthorized products or services, or misuse of the franchisor's marks, is considered a breach of the agreement. The franchisee's use of the premises must align with the franchisor's established system and brand standards.
Upon termination of the franchise agreement, the franchisee must discontinue using the Christian Brothers Automotive marks and must not operate any business that gives the impression of being associated with Christian Brothers Automotive. This restriction ensures that the franchisee does not leverage the franchisor's brand recognition after the agreement ends. The agreement also includes clauses preventing the franchisee from operating a competitive business within a certain radius of the franchised location or other Christian Brothers Automotive franchises for a specified period after the agreement's termination or transfer.