What are the 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. These obligations are designed to protect Christian Brothers Automotive's brand, confidential information, and business interests. Specifically, franchisees must discontinue using Christian Brothers Automotive's marks, including names like "Christian Brothers Automotive" or "CBAC", and must not operate any business that could give the impression of being a Christian Brothers Automotive franchise. Franchisees also agree to remove themselves from the Christian Brothers Automotive System in all aspects and roles relating directly or indirectly to any part of the Christian Brothers Automotive franchise business, including, but not limited to, franchise owner, investor, manager, consultant or employee, unless Franchisee receives the prior written consent of Franchisor.
Additionally, franchisees are required to cancel any assumed names or equivalent registrations that contain names or marks similar to Christian Brothers Automotive's trademarks and provide proof of cancellation within 30 days of termination or expiration. They must also comply with obligations regarding telephone listings and numbers as outlined in Section 5.05 of the agreement. Furthermore, franchisees must return all of Christian Brothers Automotive's property, including files, records, documents, computer records, studies, strategic plans, compilations of information, collected data, Customer Information, Data, pamphlets, brochures and similar items copying, embodying, derived from, or related to the Confidential Information that are in Franchisee's possession or under Franchisee's control.
Christian Brothers Automotive also stipulates that for a period of three years after termination or expiration, franchisees are restricted from engaging in any competitive business within a 10-mile radius of their former franchise location or any other Christian Brothers Automotive franchise. This includes owning, operating, or being employed by a business that offers similar services. These obligations remain in effect even after the agreement's termination or expiration, ensuring continued protection of Christian Brothers Automotive's interests. 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.
These post-termination obligations are fairly standard in franchising to protect the brand and prevent unfair competition. Prospective franchisees should carefully review these sections of the Franchise Agreement to understand the full scope of their responsibilities and restrictions upon leaving the Christian Brothers Automotive system. Franchisee's obligations in this Section will continue in full force and effect subsequent to and notwithstanding this Agreement's expiration or termination for any reason.