For Christian Brothers Automotive franchisees with officers, what information about the officers must be provided?
Christian_Brothers_Automotive Franchise · 2025 FDDAnswer from 2025 FDD Document
operation of the Franchised Business, Franchisee retains the right and sole responsibility for the day-to-day management and operation of the Franchised Business and the implementation and maintenance of System standards at the Franchised Business. Franchisee acknowledges that it is solely responsible for all aspects of the Franchised Business's operations, including employee and human resources matters. Franchisee further acknowledges that any controls implemented by Franchisor are for the protection of the System and the Marks and not to exercise any control over the day-to-day operation of the Franchised Business. The Principal Operator is completely responsible for assuring that the daily operations of the Franchised Business are managed so that the Franchised Business complies with all the requirements of the law, this Agreement and the Confidential Operations Manual. If Franchisee is a business entity, the Principal Operator must own or control at least fifty-one percent (51%) of the ownership interest of such business entity and must have and maintain control of the business entity for as long as such entity is the Franchisee pursuant to the terms of this Agreement. Franchisee agrees to open the Franchised Business to provide services to the public on or before five days after receipt of notice from Franchisor that the Franchised Business is operational. Franchisee, its Principal Operator, and the spouse of the Principal Operator each agree not to campaign for nor hold any public office. The failure of the Principal Operator to comply with the terms of this section will constitute a material breach of this Agreement.
Source: Item 23 — RECEIPTS (FDD pages 76–372)
What This Means (2025 FDD)
Based on the 2025 Franchise Disclosure Document, the Christian Brothers Automotive franchise agreement stipulates that if the franchisee is a business entity, a Principal Operator must be designated. This Principal Operator is required to own or control at least 51% of the ownership interest in the business entity and must maintain this control for the duration of the franchise agreement.
This requirement ensures that a specific individual is accountable for the daily operations of the Christian Brothers Automotive franchise and its compliance with all legal requirements, the franchise agreement, and the Confidential Operations Manual. The Principal Operator, along with their spouse, also agrees not to campaign for or hold any public office, with failure to comply considered a material breach of the agreement.
For a prospective franchisee, this means that if you plan to operate your Christian Brothers Automotive franchise through a corporation, LLC, or other business entity, you must identify a Principal Operator who meets the ownership and control criteria. This person will bear significant responsibility for the franchise's performance and adherence to brand standards. The franchisor needs this information to ensure someone is accountable for the franchise's operation.