Does an increase in population affect a Christian Brothers Automotive franchisee's rights to their Territory?
Christian_Brothers_Automotive Franchise · 2025 FDDAnswer from 2025 FDD Document
You maintain the rights to your area even though the population increases.
Source: Item 12 — TERRITORY (FDD pages 52–54)
What This Means (2025 FDD)
According to Christian Brothers Automotive's 2025 Franchise Disclosure Document, an increase in population does not affect a franchisee's rights to their territory. The Franchise Agreement grants franchisees an exclusive geographic area.
The territory size is approximated as a circle with a 3-mile radius around the location, but the exact territory is defined in Exhibit A of the Franchise Agreement. The shape and square footage can vary based on different factors.
Christian Brothers Automotive will not operate or grant franchises for similar businesses within a franchisee's territory. Franchisees cannot operate outside their territory and must sell all products and services through their location. While franchisees can solicit customers outside their territory, they cannot solicit within another franchisee's territory. If the Franchise Agreement is terminated, the franchisee loses all rights to their territory.