If a franchisee does not understand parts of the Christian Brothers Automotive Disclosure Document, what are they instructed to do?
Christian_Brothers_Automotive Franchise · 2025 FDDAnswer from 2025 FDD Document
| 4. Have you received and personally reviewed the Franchisor's Franchise Disclosure Document ("Disclosure Document") that was provided to you? |
|---|
| Yes |
| No |
| 5. |
| Did you sign a receipt for the Disclosure Document indicating the date you received |
| it? |
| Yes |
| No |
| 6. |
| Do you understand all of the information contained in the Disclosure Document |
| and any state-specific Addendum to the Disclosure Document? |
| Yes |
| No |
| If No, what parts of the Disclosure Document and/or Addendum do you not understand? |
| (Attach additional pages, if necessary.) |
Source: Item 22 — CONTRACTS (FDD page 76)
What This Means (2025 FDD)
According to the 2025 Christian Brothers Automotive Franchise Disclosure Document, prospective franchisees are expected to acknowledge their understanding of the information contained within the document and any state-specific addenda. Specifically, the Franchisee Disclosure Acknowledgment Statement includes a question asking if the franchisee understands all the information in the Disclosure Document. If the franchisee answers 'No', they are prompted to specify which parts they do not understand, with space provided to attach additional pages if necessary.
This acknowledgment is part of a broader effort by Christian Brothers Automotive to ensure that franchisees enter the agreement with a clear understanding of their rights, responsibilities, and the potential risks and benefits involved. The FDD emphasizes that purchasing a franchise is a significant business decision with associated risks, and franchisees should not rely on unauthorized oral statements or promises made during negotiations.
Prospective franchisees should carefully review the Franchise Disclosure Document and any addenda. If there are any sections that are unclear, they should document those areas and seek clarification from Christian Brothers Automotive. Additionally, Christian Brothers Automotive encourages franchisees to discuss the benefits and risks of establishing and operating a franchise with an attorney, accountant, or other professional advisor before making a final decision.
By requiring this acknowledgment, Christian Brothers Automotive aims to minimize misunderstandings and ensure that franchisees are fully informed before committing to the franchise agreement. This process protects both the franchisee and the franchisor by promoting transparency and informed decision-making.