What are a Christian Brothers Automotive franchisee's obligations upon termination or non-renewal of the franchise?
Christian_Brothers_Automotive Franchise · 2025 FDDAnswer from 2025 FDD Document
n, all amounts paid in connection with Franchisee's debt
service obligations, shall be subtracted from the purchase price.
- FURTHER OBLIGATIONS AND RIGHTS OF THE PARTIES UPON TERMINATION
OR EXPIRATION.
15.01 Discontinuance of Franchisor's Marks. Upon termination of this Agreement for any
reason, Franchisee shall discontinue the use of the Marks and any part of them, including,
but not limited to the Authorized Name and/or the words "Christian Brothers Automotive",
"Christian Brothers", "CBAC" and "CBA" and shall not thereafter operate or do business
under any name or in any manner that might reasonably give the general public the
impression that it is operating a franchise of Franchisor, or any business similar thereto.
Franchisee shall not thereafter use, in any manner, or for any purpose, directly or indirectly,
any of Franchisor's trade secrets, procedures, techniques, Confidential Information or
materials acquired by Franchisee by virtue of the relationship established by this
Agreement, including, without limitation, the information contained in Franchisor's
Franchise Agreement (Ver 04-14-2025)
Franchisee: ___________
Franchisor: Christian Brothers Automotive Corporation
Confidential Operations Manual, forms, advertising materials or strategies, Marks, devices,
signs, insignia, slogans and designs used from time to time in connection with the
Franchised Business, and any telephone number listed in any telephone directory under the
Authorized Name or any similar designation or directory listing which relates to the
Franchised Business. "Authorized Name" means the names set out on Exhibit "B" to this
Agreement and any other name which the Franchisor provides the Franchisee with written
authorization to use.
15.02 Execution of Documents. Franchisor may, if Franchisee fails or refuses to do so, execute
in Franchisee's name and on Franchisee's behalf, any and all documents necessary to
effectuate or administer Franchisor's Step-In Rights under Section 14.05, or cause
discontinuance of Franchisee's use of any Mark, including, but not limited to the name
"Christian Brothers Automotive," or any other related name used hereunder, and
Franchisee hereby irrevocably appoints Franchisor as Franchisee's attorney-in-fact to do
so.
15.03 Franchisor's Rights Not Prejudiced. The expiration or termination of this Agreement shall
be without prejudice to Franchisor's rights against Franchisee for obligations existing at
the time of expiration or termination, nor will it terminate the obligations of Franchisee
provided in Sections 5.01, 5.02, 5.05, 5.09, 6.04, 7.01, 10.06, 10.28, 15.01, 15.02, 15.03,
15.04, 15.05, 15.06, 15.07, 15.08, 15.09, 16.03, 16.05, 16.06, 20.03, 21.01, 23.01 and 24.01
of this Agreement, which specifically survive the expiration or termination of this
Agreement.
15.04 Franchisee's Cancellation of Names Incorporating Marks. Upon termination or expiration
of this Agreement, Franchisee shall take such action as may be necessary to cancel any
Franchise Agreement (Ver 04-14-2025)
Franchisee: ___________
Franchisor: Christian Brothers Automotive Corporation
assumed name or equivalent registration which contains any name or mark identical, or
confusingly similar with a Mark or any other name, trademark or service mark of
Franchisor, and Franchisee shall furnish Franchisor with proof of discharge of this
obligation within thirty (30) days following the termination or expiration of this
Agreement.
15.05 Franchisee's Cancellation of Telephone Listings and Numbers. Upon termination or
expiration of this Agreement, Franchisee shall immediately comply with the obligations
contained in Section 5.05.
15.06 Return of Franchisor's Property.
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 59–62)
What This Means (2025 FDD)
According to the 2025 Christian Brothers Automotive Franchise Disclosure Document, franchisees have several obligations upon termination or expiration of their franchise agreement. Christian Brothers Automotive franchisees must discontinue using Christian Brothers Automotive's marks, including the name and logos, and must not operate in a way that would suggest they are still affiliated with Christian Brothers Automotive. Franchisees also cannot use Christian Brothers Automotive's trade secrets or confidential information.
Christian Brothers Automotive franchisees must cancel any assumed names or registrations that contain names or marks similar to Christian Brothers Automotive's and provide proof of cancellation within 30 days of termination or expiration. Franchisees must also comply with obligations regarding telephone listings and numbers as outlined in Section 5.05 of the agreement. All files, records, documents, computer records, studies, strategic plans, compilations of information, collected data, customer information, pamphlets, brochures, and similar items related to confidential information must be returned in good condition.
Furthermore, for three years after termination or transfer, franchisees are restricted from engaging in any competitive business within a 10-mile radius of their former location or any other Christian Brothers Automotive franchise. This includes owning, operating, or being employed by a business that is the same or substantially similar to a Christian Brothers Automotive franchise. However, this restriction does not apply if the franchisee or a principal of the franchisee operates another business under the Christian Brothers Automotive system with the franchisor's approval. Christian Brothers Automotive's rights against the franchisee for obligations existing at the time of termination are not prejudiced by the termination or expiration of the agreement, and certain obligations of the franchisee, as detailed in specific sections of the agreement, survive termination or expiration.