Is the Christian Brothers Automotive franchisee allowed to use the Marks outside of the Territory?
Christian_Brothers_Automotive Franchise · 2025 FDDAnswer from 2025 FDD Document
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
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.
5.11 Online Use of Marks. Franchisee shall not, without the prior written approval of Franchisor, use the Marks or any abbreviation or other name associated with Franchisor and/or the System as part of any e-mail address, domain name, and/or other identification of Franchisee in any electronic medium. Franchisee agrees not to transmit or cause any other party to transmit advertisements, solicitations, marketing information, promotional information or any other information whatsoever regarding Christian Brothers Automotive businesses by e-mail or any other Electronic Media without Franchisor's prior written consent and in accordance with such specific programs, policies, terms and conditions as Franchisor may from time to time establish. "Electronic Media" shall include, but not be limited to, blogs, microblogs, social networking sites (such as Facebook, LinkedIn,
Franchisee will use the Marks only for the operation of the Franchised Business. Any unauthorized use of the Marks will constitute an infringement of Franchisor's rights and a material breach of this Agreement.
Source: Item 23 — RECEIPTS (FDD pages 76–372)
What This Means (2025 FDD)
According to the 2025 Christian Brothers Automotive Franchise Disclosure Document, a franchisee's rights to offer and sell services are limited to their designated territory. Specifically, the franchisee is prohibited from soliciting, selling, or performing any services outside of their territory without the express written consent of Christian Brothers Automotive. This restriction ensures that each franchise operates within its defined area and does not encroach upon the territories of other franchisees. The agreement emphasizes that the license to use and display the Marks is applicable only within the specified territory. This condition is in place to maintain market control and prevent conflicts between franchisees.
Christian Brothers Automotive grants franchisees a nonexclusive license to use and display the Marks in connection with the operation of the Franchised Business and the Services only within the Territory. The territory itself is defined in Exhibit A of the Franchise Agreement. This means a franchisee's ability to leverage the Christian Brothers Automotive brand, including its trademarks and service marks, is geographically restricted.
Unauthorized use of the Marks constitutes an infringement of Christian Brothers Automotive's rights and a material breach of the Franchise Agreement. This includes using the Marks in any manner not explicitly authorized or outside the designated territory. Franchisees are also restricted from using the Marks or any associated names in any electronic medium, such as email addresses or domain names, without prior written approval from Christian Brothers Automotive. This is to ensure brand consistency and control over the online representation of the franchise.