If a franchisee does not understand parts of the Christian Brothers Automotive Franchise Agreement, what are they instructed to do?
Christian_Brothers_Automotive Franchise · 2025 FDDAnswer from 2025 FDD Document
IN WITNESS WHEREOF, the parties acknowledge that they have read and understand the contents of this Amendment, that they have had the opportunity to obtain the advice of counsel. Intending to be legally bound, the parties have fully and duly executed, sealed and delivered this Amendment on the day of, 20 CHRISTIAN BROTHERS AUTOMOTIVE CORPORATION a Texas corporation
Source: Item 22 — CONTRACTS (FDD page 76)
What This Means (2025 FDD)
Based on the 2025 Christian Brothers Automotive Franchise Disclosure Document, franchisees in New York are advised to seek legal counsel to review and understand the Amendment to the Disclosure Document and Franchise Agreement. This is highlighted in the IN WITNESS WHEREOF clause, which states that the parties acknowledge they have read and understand the contents of the Amendment and have had the opportunity to obtain advice of counsel. This suggests that Christian Brothers Automotive emphasizes the importance of franchisees fully understanding the legal implications of the agreement before signing.
For prospective franchisees, this means they should budget for legal fees to have an attorney review the franchise agreement and any related documents. This is especially important in states like New York, where specific amendments to the standard agreement may exist. Engaging legal counsel can help franchisees identify potential risks, understand their obligations, and negotiate more favorable terms if possible.
While the FDD excerpt focuses on the acknowledgement of understanding and opportunity to seek counsel, it does not explicitly detail the consequences of failing to understand the agreement. Therefore, franchisees should prioritize due diligence and seek professional advice to make informed decisions. Christian Brothers Automotive encourages franchisees to fully grasp the agreement's terms, protecting both the franchisor and franchisee in the long term.