In the Christian Brothers Automotive general release agreement, who are the parties involved, and what are their roles?
Christian_Brothers_Automotive Franchise · 2025 FDDAnswer from 2025 FDD Document
ELEASE
The following is Christian Brothers Automotive Corporation current general release agreement that Christian Brothers Automotive Corporation may require a Franchisee and/or transferor to sign as part of a renewal, an approved transfer or a termination.
THIS RELEASE AGREEMENT (this "Agreement") is made and entered into as of the day of, 20 (the "Effective Date"), by and between Christian Brothers Automotive Corporation, a Texas corporation ("CBAC") and, a ("Franchisee").
RECITALS
WHEREAS, Franchisee is a party to that certain Franchise Agreement executed between Franchisee and Franchisor, dated on or about _________________ (such Franchise Agreement, together with all exhibits, amendments and addendums thereto, being collectively referred to in this Agreement as the "Franchise Agreement"), pursuant to which Franchisee was granted the right to operate a Christian Brothers Automotive business at ____________________________.
Source: Item 22 — CONTRACTS (FDD page 76)
What This Means (2025 FDD)
According to the 2025 Christian Brothers Automotive Franchise Disclosure Document, the parties involved in the general release agreement are Christian Brothers Automotive Corporation ("CBAC"), identified as a Texas corporation, and the Franchisee. CBAC, as the franchisor, may require the franchisee to sign this agreement as part of a renewal, approved transfer, or termination of the franchise agreement. The agreement is effective as of a specific date in 20, as defined within the document.
The agreement references a Franchise Agreement already in place between the franchisee and franchisor, which grants the franchisee the right to operate a Christian Brothers Automotive business at a specified location. The general release agreement is made in consideration of the promises and covenants outlined within it, as well as other valuable considerations, with both parties intending to be legally bound by its terms.
For a prospective franchisee, this means that under certain circumstances such as renewal, transfer, or termination, Christian Brothers Automotive may require them to sign a release agreement. This agreement would likely involve the franchisee releasing Christian Brothers Automotive from certain liabilities or claims. It is important for franchisees to carefully review such agreements with legal counsel to fully understand their rights and obligations before signing.