What is the Christian Brothers Automotive franchisee's obligation regarding the confidentiality of procedures, policies, standards, and criteria for Christian Brothers Automotive?
Christian_Brothers_Automotive Franchise · 2025 FDDAnswer from 2025 FDD Document
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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.
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 strict obligations regarding the confidentiality of the brand's operational information. Franchisees cannot disclose or use the Confidential Operations Manual or any information, knowledge, or know-how related to the systems of operation, products, services, procedures, policies, standards, criteria, or customer information for the benefit of any other person or entity. This restriction applies both during the term of the Franchise Agreement and at any time thereafter. This is a standard practice in franchising to protect the brand's competitive advantage and proprietary information.
Christian Brothers Automotive franchisees can only disclose confidential information to their employees who need access to it to perform their job duties. Franchisees must take precautions to ensure that their employees maintain the confidentiality of this information. This includes, if Christian Brothers Automotive deems it appropriate, requiring employees to sign a non-disclosure and non-competition agreement provided by Christian Brothers Automotive. If required, these agreements must be executed at the earlier of the commencement of employment or training and comply with the laws of the state where the franchised business is located. Christian Brothers Automotive is identified as a third-party beneficiary of these agreements and has the independent right to enforce them. Franchisees must submit copies of all executed non-disclosure agreements to Christian Brothers Automotive within ten days of their execution.
These confidentiality obligations extend to data security and privacy of customer information. Franchisees must comply with all applicable privacy laws and mandatory policies in the Confidential Operations Manual related to privacy and security. They must also maintain reasonable safeguards for customer information in their possession to protect it from unauthorized use. Franchisees must immediately notify Christian Brothers Automotive upon discovering any theft, loss, or misuse of customer information and cooperate with any remediation efforts directed by Christian Brothers Automotive. Franchisees are prohibited from making any public comment regarding a data security incident without Christian Brothers Automotive's approval, ensuring that any communication is handled consistently by the franchisor.