Does a Christian Brothers Automotive franchisee receive the right to use an item covered by a copyright from Christian Brothers Automotive?
Christian_Brothers_Automotive Franchise · 2025 FDDAnswer from 2025 FDD Document
WHEREAS, Franchisor as the result of great expenditure of time and effort has developed an effective system of establishing and operating an automotive repair business including business forms; software; bookkeeping and accounting materials and techniques; management and control systems; pricing and purchasing systems; office procedures; site selection techniques; staffing procedures; and, in general, a style, system, technique and method of business operation and procedure developed through and by reason of Franchisor's business experience (collectively the "System"); and
WHEREAS, Franchisor is the owner of all trademarks, trade names, service marks, copyrights and logo-types related to the System, including, but not limited to, those listed in Exhibit "B" (the "Marks"); and of certain techniques, know-how, trade secrets and procedures (the "Know-How"), all of which are used in connection with the establishment and operation of an automotive repair business including processes and techniques for selling and marketing such services, and quality control techniques and training programs; and
WHEREAS, Franchisor continues to expend time, skill and money to investigate and, if Franchisor deems it desirable, to develop and integrate into the System new procedures, systems, products, and services; and
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 14 — PATENTS, COPYRIGHTS AND PROPRIETARY INFORMATION (FDD pages 56–57)
What This Means (2025 FDD)
According to the 2025 Christian Brothers Automotive Franchise Disclosure Document, Christian Brothers Automotive grants franchisees a non-exclusive license to operate a Christian Brothers Automotive franchise and to use the "Know-How" and "System." The "System" includes items protected by copyright.
Specifically, Christian Brothers Automotive owns all copyrights related to the System, which includes business forms, software, bookkeeping and accounting materials, techniques, management and control systems, pricing and purchasing systems, office procedures, site selection techniques, and staffing procedures. The franchise agreement grants the franchisee a non-exclusive license to use these copyrighted materials solely in connection with operating their Christian Brothers Automotive franchise.
Upon termination of the franchise agreement, the franchisee must discontinue the use of any of Christian Brothers Automotive's trade secrets, procedures, techniques, confidential information, or materials, including those found in the Confidential Operations Manual, forms, advertising materials or strategies, marks, devices, signs, insignia, slogans and designs. This obligation ensures that the franchisee does not continue to use Christian Brothers Automotive's copyrighted materials or system after the franchise relationship ends.