What happens to the franchisee's obligations if the Christian Brothers Automotive Franchise Agreement is terminated?
Christian_Brothers_Automotive Franchise · 2025 FDDAnswer from 2025 FDD Document
ing, 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. Upon the termination of this Agreement for any reason,
Franchisee shall return, in good condition, all 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.
15.07 Payment of Sums Due. Franchisee shall promptly pay all sums owing to Franchisor (and
its subsidiaries, affiliates or designees, if any). In the event of termination for any default
of Franchisee, such sums shall include all damages, costs, expenses (including reasonable
attorney's fees) and liquidated damages incurred by Franchisor as a result of the default.
15.08 Franchisor's Option to Purchase Franchisee's Business.
Source: Item 23 — RECEIPTS (FDD pages 76–372)
What This Means (2025 FDD)
According to the 2025 Christian Brothers Automotive Franchise Disclosure Document, termination of the Franchise Agreement does not release the franchisee from several ongoing obligations. Christian Brothers Automotive retains its rights against the franchisee for obligations existing at the time of termination. Certain sections of the agreement, including those related to confidentiality, indemnity, and dispute resolution, specifically survive the termination. This means that even after the agreement ends, the franchisee must continue to uphold these responsibilities.
Upon termination, the franchisee must discontinue using Christian Brothers Automotive's marks, including names like "Christian Brothers Automotive", "Christian Brothers", "CBAC" and "CBA", and must not operate any similar business that might confuse the public into thinking it is still a Christian Brothers Automotive franchise. The franchisee is also prohibited from using Christian Brothers Automotive's trade secrets, procedures, techniques, and confidential information.
Additionally, the franchisee is required to cancel any assumed names or equivalent registrations that contain names or marks identical or confusingly similar to Christian Brothers Automotive's marks and provide proof of this cancellation within 30 days of termination. The franchisee must also comply with obligations related to telephone listings and numbers as outlined in Section 5.05 of the agreement. Furthermore, all files, records, documents, and other materials related to confidential information must be returned to Christian Brothers Automotive in good condition.