Can Christian Brothers Automotive modify the IT support services it provides to franchisees?
Christian_Brothers_Automotive Franchise · 2025 FDDAnswer from 2025 FDD Document
(c) IT Support Fee. Franchisor may provide Franchisee with information technology ("IT") support such as web hosting and software/hardware support in return for a fee paid by Franchisee to Franchisor equal to an amount determined from time to time by Franchisor, in its sole discretion, and set forth in the Confidential Operations Manual. All fees paid in accordance with this Section are non- refundable, and subject to change in Franchisor's sole discretion. Franchisor may modify the IT support services it provides or discontinue the provision of such services at any time.
(d) Software Fees. Franchisor may provide Franchisee with certain software, including, without limitation, point-of-sale software, accounting software, and internet failover software, in return for fees to be established in Franchisor's discretion and set forth in the Confidential Operations Manual or otherwise in writing, and payable by Franchisee. Related to the foregoing, Franchisor may further charge Franchisee for annual licensing or maintenance fees established in Franchisor's discretion and set forth in the Confidential Operations Manual or otherwise in writing, and payable by Franchisee. All fees and charges paid in accordance with this Section 4.03(d) are non-refundable, and subject to change in Franchisor's sole discretion. Franchisor may modify any such software it provides or discontinue the provision of such software at any time.
Source: Item 23 — RECEIPTS (FDD pages 76–372)
What This Means (2025 FDD)
According to the 2025 Christian Brothers Automotive Franchise Agreement, Christian Brothers Automotive has the authority to modify or discontinue IT support services provided to franchisees. Specifically, Christian Brothers Automotive may offer IT support, including web hosting and software/hardware assistance, in exchange for a fee. The amount of this IT support fee is determined by Christian Brothers Automotive at its discretion and is detailed in the Confidential Operations Manual. These fees are non-refundable and subject to change at Christian Brothers Automotive's sole discretion.
This means that Christian Brothers Automotive franchisees could experience changes in the scope or nature of IT support they receive. They may also see adjustments in the fees charged for these services. The agreement states that Christian Brothers Automotive can modify or discontinue any software provided, such as point-of-sale, accounting, and internet failover software, at any time. Franchisees are obligated to pay any established annual licensing or maintenance fees for software, as outlined in the Confidential Operations Manual or in writing, and these fees are also subject to change at Christian Brothers Automotive's discretion.
For a prospective franchisee, this highlights the importance of carefully reviewing the Confidential Operations Manual to understand the current IT support services, associated fees, and the potential for these to change. It also underscores the need to budget for potential increases in IT support costs or the possibility of needing to find alternative IT solutions if Christian Brothers Automotive modifies or discontinues its services. This level of control allows Christian Brothers Automotive to maintain consistency and adapt to changing technological needs across the franchise system, but it also introduces a degree of uncertainty for franchisees regarding their ongoing IT support and expenses.