factual

What does the Nonuse, Nondisclosure and Non-Competition Agreement prevent the Franchisee Candidate from doing with Christian Brothers Automotive's Confidential Information?

Christian_Brothers_Automotive Franchise · 2025 FDD

Answer from 2025 FDD Document

provide access to the Confidential Information to any Person who is not a signatory to this Agreement without CBAC's prior written consent, which consent may be withheld in CBAC's sole and exclusive discretion. The Franchisee Candidate is responsible for any breach of this Agreement by any Person who receives any of the Confidential Information, either directly or indirectly, from the Franchisee Candidate. The Franchisee Candidate will promptly notify CBAC of any unauthorized access to, misuse or misappropriation of the Confidential Information that comes to the Franchisee Candidate's attention. For purposes of this Agreement, the term "Person" means any person, persons, partnership, entity, association, or corporation (other than CBAC).

Additional Nondisclosure Obligations.

Without CBAC's prior written consent, except where otherwise required by law (such requirements to be confirmed by a written legal opinion of the Franchisee Candidate's counsel), the Franchisee Candidate will not disclose to any Person the fact that the Confidential Information has been made available to the Franchisee Candidate.

If Franchisee Candidate is required by law to disclose all or any of the Confidential Information and such requirements are confirmed by a written legal opinion of the Franchisee Candidate's counsel, Franchisee Candidate shall reasonably cooperate with CBAC in any effort to seek a protective order or otherwise contest such required disclosure, at CBAC's expense.

The Franchisee Candidate shall give CBAC prompt notice of any such legal or governmental demand for the Confidential Information.

Non-Competition Obligations.

Franchisee Candidate acknowledges and agrees that the training required by CBAC of Franchisee Candidate will give Franchisee Candidate access to Confidential Information, including, without limitation, to vendors and customers of CBAC and CBAC franchise businesses.

Franchisee Candidate covenants and agrees that during the term of this Agreement, unless CBAC gives Franchisee Candidate its prior written approval, Franchisee Candidate shall not, either directly or indirectly, for Franchisee Candidate, or through, on behalf of, or in conjunction with any Person: (i) divert or attempt to divert any current or potential business account or customer of CBAC (or of any CBAC franchise business) to any Person, whether by direct or indirect suggestion, referral, inducement, or otherwise; (ii) do or perform, directly or indirectly, any act that might injure or be harmful to the goodwill associated with CBAC; and/or (iii) directly or indirectly for Franchisee Candidate or on behalf of, or in conjunction with any Person, own, maintain, operate, engage in, be employed by, or have any interest in any business that is the same as or similar to a CBAC franchise business.

Franchisee Candidate further covenants and agrees that for a period of three (3) years following the termination of this Agreement, unless CBAC gives Franchisee Candidate its prior written approval, Franchisee Candidate shall not, either directly or indirectly, for Franchisee Candidate, or through, on behalf of, or in conjunction with any Person, own, maintain, operate, engage in, be employed by, or have any interest in any business that is the same as or similar to a CBAC franchise business, if that business is located (or if it is intended to be located) within a radius of ten (10) miles of any CBAC franchise business located anywhere at that time.

Source: Item 22 — CONTRACTS (FDD page 76)

What This Means (2025 FDD)

According to Christian Brothers Automotive's 2025 Franchise Disclosure Document, the Nonuse, Nondisclosure, and Non-Competition Agreement places several restrictions on a Franchisee Candidate's use of confidential information. Specifically, the Franchisee Candidate cannot provide access to the Confidential Information to any person who is not a signatory to the agreement without Christian Brothers Automotive's prior written consent. Christian Brothers Automotive retains sole discretion on granting this consent. The Franchisee Candidate is responsible for any breach of the agreement by anyone who receives Confidential Information from them, either directly or indirectly, and must promptly notify Christian Brothers Automotive of any unauthorized access, misuse, or misappropriation of the Confidential Information. The term "Person" is defined broadly to include any individual, partnership, entity, association, or corporation other than Christian Brothers Automotive.

Additionally, without prior written consent from Christian Brothers Automotive, the Franchisee Candidate cannot disclose to any person that the Confidential Information has been made available to them, unless required by law. If such disclosure is legally required, confirmed by a written legal opinion from the Franchisee Candidate's counsel, the Franchisee Candidate must cooperate with Christian Brothers Automotive in seeking a protective order or contesting the disclosure, at Christian Brothers Automotive's expense. The Franchisee Candidate must also provide prompt notice to Christian Brothers Automotive of any legal or governmental demand for the Confidential Information.

The Franchisee Candidate also agrees that during the term of the agreement, unless Christian Brothers Automotive provides prior written approval, the Franchisee Candidate will not divert or attempt to divert any current or potential business account or customer of Christian Brothers Automotive (or any Christian Brothers Automotive franchise business) to any person. They also cannot perform any act that might injure the goodwill associated with Christian Brothers Automotive. Furthermore, the Franchisee Candidate cannot own, maintain, operate, engage in, be employed by, or have any interest in any business that is the same as or similar to a Christian Brothers Automotive franchise business, either directly or indirectly. These non-competition obligations extend for three years following the termination of the agreement within a ten-mile radius of any Christian Brothers Automotive franchise business.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.