What is the Christian Brothers Automotive franchisee's responsibility if an employee breaches the Nondisclosure Agreement?
Christian_Brothers_Automotive Franchise · 2025 FDDAnswer from 2025 FDD Document
eement (Ver 04-14-2025)
Franchisee: ___________
Franchisor: Christian Brothers Automotive Corporation
7. CONFIDENTIAL INFORMATION.
7.01 Non-Use and Non-Disclosure of Confidential Information. Except as otherwise stated herein, Franchisee shall not, during the term of this Agreement or at any time thereafter, communicate, divulge or use for the benefit of any other person, persons, partnership, association, corporation or entity the Confidential Operations Manual, any information, knowledge or Know-How concerning the systems of operation, products, services, procedures, policies, standards, criteria or Customers, Customer Information, Data and/or any other information which Franchisor designates in other sections of this Agreement or elsewhere as confidential (collectively "Confidential Information"). Franchisee may disclose Confidential Information that is required for the operation of the Franchised Business to its employees who must have access to it in order to perform their job duties for the operation of the Franchised Business. Franchisee shall take such precautions to ensure that its employees retain such information in confidence, including when Franchisor deems it appropriate, the execution by each such employee of a nondisclosure and noncompetition agreement provided by Franchisor (the "Nondisclosure Agreement"). If required by Franchisor, the Nondisclosure Agreement must (a) be executed at the earlier of the commencement of employment or the commencement of training of the respective employee, and (b) comply with the law of the state where the Franchised Business is located including without limitation all requirements pertaining to the validity and enforceability of the Nondisclosure Agreement. The Nondisclosure Agreement will be in a form prescribed by Franchisor and will include, without limitation, specific identification of Franchisor as a third-party beneficiary of the Nondisclosure Agreement with the
Franchise Agreement (Ver 04-14-2025) Franchisee: ___________
Franchisor: Christian Brothers Automotive Corporation
independent right to enforce it.
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 take precautions to ensure their employees keep confidential information private. This includes having employees sign a Nondisclosure Agreement when Christian Brothers Automotive deems it appropriate.
The Nondisclosure Agreement must be executed when the employee starts working or training, whichever comes first. It also has to follow the laws of the state where the Christian Brothers Automotive location is, making sure it's valid and can be enforced. The agreement needs to specifically say that Christian Brothers Automotive can enforce it as a third party.
Christian Brothers Automotive franchisees are required to send copies of all signed Nondisclosure Agreements to Christian Brothers Automotive within 10 days of them being signed. The FDD does not explicitly state the franchisee's responsibility if an employee breaches the Non-disclosure Agreement. It is recommended that prospective franchisees ask Christian Brothers Automotive about the potential liabilities and responsibilities in case of a breach.