Does a Christian Brothers Automotive franchisee receive the right to use an item covered by a patent from Christian Brothers Automotive?
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.
Source: Item 14 — PATENTS, COPYRIGHTS AND PROPRIETARY INFORMATION (FDD pages 56–57)
What This Means (2025 FDD)
Based on the 2025 Franchise Disclosure Document, the Christian Brothers Automotive franchise agreement grants franchisees a limited, nonexclusive license to use the brand's marks in connection with operating their franchised business. This license allows franchisees to utilize the Christian Brothers Automotive system and know-how within their designated territory.
However, the agreement explicitly states that Christian Brothers Automotive retains all rights to the marks, including the right to use them, grant licenses to others, and develop other systems using similar marks without any obligation to the franchisee. This means that while franchisees can use the brand's trademarks and system, they do not have exclusive rights to them and cannot claim ownership or goodwill associated with these marks.
The FDD also specifies that upon termination of the franchise agreement, franchisees must discontinue using the marks and any related names, ensuring they do not give the impression of operating a Christian Brothers Automotive franchise. Furthermore, franchisees are prohibited from using any of the franchisor's trade secrets, procedures, techniques, or confidential information after termination. The franchise agreement does not specifically mention patents, so it is not possible to determine from the provided excerpts whether a franchisee receives the right to use an item covered by a patent. To clarify this, prospective franchisees should directly ask Christian Brothers Automotive about patent usage rights during their due diligence.