What is the Christian Brothers Automotive franchisee's obligation regarding the use of promotional programs?
Christian_Brothers_Automotive Franchise · 2025 FDDAnswer from 2025 FDD Document
orporation
independent right to enforce it. Franchisee will submit copies of all such executed
Nondisclosure Agreements to Franchisor within ten (10) days of their execution.
- 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.
Source: Item 23 — RECEIPTS (FDD pages 76–372)
What This Means (2025 FDD)
According to the 2025 Christian Brothers Automotive Franchise Disclosure Document, franchisees must adhere to specific standards regarding advertising and promotional materials. Franchisees are required to use only advertising, identification, and promotional materials and programs that have either been furnished by Christian Brothers Automotive or have received prior approval from them. This includes a wide range of materials, such as printed and broadcast advertisements, stationery, business cards, press releases, signs, displays, leaflets, newspaper inserts, promotional mail outs, and promotional literature.
Christian Brothers Automotive maintains the right to specify standards, specifications, and requirements for all advertising in writing, either in its Confidential Operations Manual or otherwise. The advertising must be conducted in a dignified manner and must not detract from, reflect unfavorably upon, or denigrate the Christian Brothers Automotive marks, the system, or the products.
Christian Brothers Automotive, or its designee, administers marketing funds collected from franchisees through a Marketing Fee, which is capped at a Maximum Annual Cost per Program fund per year. Christian Brothers Automotive has sole discretion over the creative concepts, materials, media, placement, and allocation of advertising using these funds. The marketing funds are intended to enhance general public recognition and acceptance of the marks for the benefit of the entire Christian Brothers Automotive system. Franchisees acknowledge that there is no obligation for Christian Brothers Automotive to ensure that expenditures are equivalent or proportionate to each franchisee's contributions, nor is there a guarantee that each franchise member will directly benefit on a pro rata basis from advertising placements.