Does the Christian Brothers Automotive Franchisee Disclosure Acknowledgment apply to communications with transferring franchisees?
Christian_Brothers_Automotive Franchise · 2025 FDDAnswer from 2025 FDD Document
In the event that you are intending to purchase an existing CBAC franchise from an existing Franchisee, you may have received information from the transferring Franchisee, who is not an employee or representative of the Franchisor. The questions below do not apply to any communications that you had with the transferring Franchisee. Please review each of the following questions and statements carefully and provide honest and complete responses to each.
Source: Item 22 — CONTRACTS (FDD page 76)
What This Means (2025 FDD)
According to the 2025 Christian Brothers Automotive Franchise Disclosure Document, the Franchisee Disclosure Acknowledgment Statement does not apply to communications with transferring franchisees. The document clarifies that if a prospective franchisee is purchasing an existing Christian Brothers Automotive franchise from a transferring franchisee, any information received from that transferring franchisee (who is not an employee or representative of Christian Brothers Automotive) is not covered by the acknowledgment.
This means that a new franchisee purchasing an existing location is not bound by the Franchisee Disclosure Acknowledgment regarding information received from the previous owner. The acknowledgment is designed to ensure that new franchisees are not relying on unauthorized or misleading statements from Christian Brothers Automotive representatives or brokers, but it specifically excludes communications with the transferring franchisee.
This distinction is important because it acknowledges that prospective franchisees may receive information from the current owner of the franchise during the transfer process. Christian Brothers Automotive does not want the acknowledgment to limit or affect those communications. However, prospective franchisees should still conduct their own due diligence and verify information with Christian Brothers Automotive directly to ensure accuracy and avoid potential misunderstandings.