factual

What is the Christian Brothers Automotive franchisee's obligation regarding the confidentiality of Data?

Christian_Brothers_Automotive Franchise · 2025 FDD

Answer from 2025 FDD Document

that

Franchisee's employees are not employees of Franchisor or its affiliates.

Franchise Agreement (Ver 04-14-2025)

Franchisee: ___________

Franchisor: Christian Brothers Automotive Corporation

7. CONFIDENTIAL INFORMATION.

7.01 Non-Use and Non-Disclosure of Confidential Information. Except as otherwise stated herein, Franchisee shall not, during the term of this Agreement or at any time thereafter, communicate, divulge or use for the benefit of any other person, persons, partnership, association, corporation or entity the Confidential Operations Manual, any information, knowledge or Know-How concerning the systems of operation, products, services, procedures, policies, standards, criteria or Customers, Customer Information, Data and/or any other information which Franchisor designates in other sections of this Agreement or elsewhere as confidential (collectively "Confidential Information"). Franchisee may disclose Confidential Information that is required for the operation of the Franchised Business to its employees who must have access to it in order to perform their job duties for the operation of the Franchised Business. Franchisee shall take such precautions to ensure that its employees retain such information in confidence, including when Franchisor deems it appropriate, the execution by each such employee of a nondisclosure and noncompetition agreement provided by Franchisor (the "Nondisclosure Agreement"). If required by Franchisor, the Nondisclosure Agreement must (a) be executed at the earlier of the commencement of employment or the commencement of training of the respective employee, and (b) comply with the law of the state where the Franchised Business is located including without limitation all requirements pertaining to the validity and enforceability of the Nondisclosure Agreement. The Nondisclosure Agreement will be in a form prescribed by Franchisor and will include, without limitation, specific identification of Franchisor as a third-party beneficiary of the Nondisclosure Agreement with the

Franchise Agreement (Ver 04-14-2025) Franchisee: ___________

Franchisor: Christian Brothers Automotive Corporation

independent right to enforce it. Franchisee will submit copies of all such executed

Nondisclosure Agreements to Franchisor within ten (10) days of their execution.

  1. ADVERTISING AND MARKETING.

8.01 Advertising Standards. Franchisee will only use such advertising, identification and

promotional materials and programs (including, but not limited to, printed and broadcast

advertisements, stationery, business cards, press releases, signs, displays, leaflets,

newspaper inserts, promotional mail outs and promotional literature) which have been

furnished by Franchisor or been approved in advance by Franchisor in accordance with

Section 8.04. All advertising by Franchisee shall be conducted in a dignified manner, shall

conform to such standards, specifications and requirements as Franchisor may specify from

time to time in writing, in its Confidential Operations Manual or otherwise, and shall not

in any way detract from, reflect unfavorably upon, or denigrate the Marks, the System, the

products, or Franchisor.

8.02 Administration of Franchisor's Marketing Program. Franchisor or its designee may

administer Marketing Funds (as defined below) as follows:

(a) As provided in Section 4.02 of this Agreement, if Franchisor establishes any

Programs, Franchisee will pay to Franchisor a "Marketing Fee" of up to the

Maximum Annual Cost per Program fund per year. The Marketing Fee will be

combined with contributions made by all other franchisees of Franchisor that are

members of that Program to create marketing funds (the "Marketing Funds").

(b) Franchisor will have sole discretion over the creative concepts, materials and media

used in such Program, and the placement and allocation of advertising. Franchisee

acknowledges that the Marketing Funds are intended to further general public

Franchise Agreement (Ver 04-14-2025)

Franchisee: ___________

Franchisor: Christian Brothers Automotive Corporation

recognition and acceptance of the Marks for the benefit of the System and that

Franchisor and its designees undertake no obligation to make expenditures which

are equivalent or proportionate to Franchisee's contributions. Franchisor cannot

and does not represent or insure that each franchise member of a Program will

benefit directly or on a pro rata basis from the placement of advertising in

connection with a particular Program.

Source: Item 23 — RECEIPTS (FDD pages 76–372)

What This Means (2025 FDD)

According to the 2025 Christian Brothers Automotive Franchise Disclosure Document, franchisees have specific obligations regarding the confidentiality of data. Franchisees must not disclose or use Confidential Information, including the Confidential Operations Manual, systems of operation, products, services, procedures, policies, standards, criteria, Customer Information, and Data, for the benefit of any other entity. The franchisee can disclose Confidential Information to employees who need it to perform their job duties.

To ensure employee confidentiality, Christian Brothers Automotive franchisees must take precautions, including having employees execute a Nondisclosure Agreement. This agreement, provided by Christian Brothers Automotive, should be executed at the earlier of employment or training commencement and comply with state law. Christian Brothers Automotive is a third-party beneficiary of this agreement and has the right to enforce it. Franchisees must submit copies of these agreements to Christian Brothers Automotive within ten days of execution.

Furthermore, Christian Brothers Automotive may specify the Customer Information and other data that franchisees must collect and maintain. All data created or collected by the franchisee in connection with the System is owned by Christian Brothers Automotive. Franchisees must also comply with all applicable privacy laws, policies in the Confidential Operations Manual, and any privacy policies made to customers. They must maintain safeguards for Customer Information and take actions deemed necessary by Christian Brothers Automotive to comply with privacy laws. Franchisees must allow Christian Brothers Automotive access to their systems for audits or to mitigate security incidents and will indemnify Christian Brothers Automotive from losses arising from theft, misuse, or breach of these terms.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.