What happens if Christian Brothers Automotive designates new required goods and services?
Christian_Brothers_Automotive Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee will:
(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.
Franchisee agrees that Franchisor may modify the specifications for all equipment and supplies and qualifications for all service providers from time to time in its sole and exclusive discretion.
Franchisee must at all times during the term of this Agreement, and at its sole expense, maintain such equipment as designated in writing by Franchisor including the requirements that are set forth in the Confidential Operations Manual. Franchisee must maintain all equipment used in the Franchised Business in good repair and must regularly service and maintain such equipment so as to keep it continually in safe and good working order. Lifts must be serviced by a qualified lift inspector at least as often as required by the then-current ANSI/ALI standards. Franchisee's failure to maintain the equipment as required by Franchisor will constitute a material breach of this Agreement.
Section 9.07, Franchisor has expressly reserved the right to test, analyze, inspect or randomly sample the product or service of any supplier including any supplier that is proposed by Franchisee, and Franchisee agrees to reimburse Franchisor for its documented costs of testing, analyzing, inspecting or sampling the service or product of any supplier proposed by Franchisee regardless of whether such supplier is subsequently approved or rejected by Franchisor as an approved source of supply.
Source: Item 16 — RESTRICTIONS ON WHAT THE FRANCHISEE MAY SELL (FDD page 58)
What This Means (2025 FDD)
According to the 2025 Christian Brothers Automotive Franchise Disclosure Document, franchisees must obtain and maintain all necessary licenses, permits, or other required forms of governmental approval needed to offer and sell products and services that are part of the Christian Brothers Automotive system, or which may be made a part of the system in the future. This means that if Christian Brothers Automotive introduces new required goods or services, franchisees are responsible for ensuring they have the proper authorization to provide them.
Christian Brothers Automotive retains the right to modify the specifications for all equipment and supplies and qualifications for all service providers from time to time in its sole and exclusive discretion. Franchisees must also maintain such equipment as designated in writing by Christian Brothers Automotive, including requirements in the Confidential Operations Manual, and keep it in good repair. Failure to maintain the equipment as required by Christian Brothers Automotive will constitute a material breach of the Franchise Agreement.
Christian Brothers Automotive also reserves the right to test, analyze, inspect, or randomly sample the product or service of any supplier, including those proposed by the franchisee. The franchisee agrees to reimburse Christian Brothers Automotive for its documented costs of testing, analyzing, inspecting, or sampling any supplier proposed by the franchisee, regardless of whether the supplier is approved. This ensures Christian Brothers Automotive maintains control over the quality and standards of goods and services offered under its brand name, even if new requirements are introduced.