Are Christian Brothers Automotive franchisees required to offer all services designated as required by CBAC?
Christian_Brothers_Automotive Franchise · 2025 FDDAnswer from 2025 FDD Document
10.03 Compliance With this Agreement, Laws, Rules and Regulations. Franchisee will:
(a) comply with the terms and conditions included in this Agreement;
(b) operate the Franchised Business in strict compliance with all applicable laws, rules
and regulations of all governmental authorities;
(c) comply with all applicable wage, hour and other laws and regulations of federal,
state and/or local governments;
(d) prepare and file all necessary tax returns and pay all taxes imposed upon
Franchisee, Franchised Business, and Franchisee's property; and
(e) obtain and keep in good standing all necessary licenses, permits or other required
forms of governmental approval required of Franchisee to offer and sell those
products and services which are part of the System or which may, in the future, be
made a part of the System.
Source: Item 16 — RESTRICTIONS ON WHAT THE FRANCHISEE MAY SELL (FDD page 58)
What This Means (2025 FDD)
According to Christian Brothers Automotive's 2025 Franchise Disclosure Document, franchisees must offer products and services that are part of the Christian Brothers Automotive system, including those that may be added in the future. Specifically, franchisees are required to obtain all necessary licenses, permits, or other required forms of governmental approval to offer and sell the products and services that are part of the system or which may, in the future, be made a part of the system. This indicates that if Christian Brothers Automotive designates certain services as required, franchisees must offer them, provided they obtain the necessary approvals.
Christian Brothers Automotive retains the right to modify the system periodically, and franchisees agree to implement and maintain these changes. This includes modifications to specifications for equipment, supplies, and qualifications for service providers, which Christian Brothers Automotive can change at its sole discretion. Franchisees are responsible for the day-to-day management and operation of the franchised business, including maintaining system standards.
Christian Brothers Automotive also reserves the right to establish a schedule of minimum and maximum pricing for services and products. If such a schedule is established, Christian Brothers Automotive will advise franchisees, who must then utilize this pricing when providing services and products to customers. This ensures consistency across all Christian Brothers Automotive locations and adherence to brand standards.
While franchisees retain responsibility for day-to-day operations and implementing system standards, they must comply with the terms and conditions outlined in the Franchise Agreement and operate in strict compliance with all applicable laws, rules, and regulations. This includes offering the services that are part of the Christian Brothers Automotive system and adhering to pricing schedules set by the franchisor.