At what point must a Christian Brothers Automotive franchisee's employee execute a Nondisclosure Agreement?
Christian_Brothers_Automotive Franchise · 2025 FDDAnswer from 2025 FDD Document
r Customers, Customer Information, Data and/or any other information which Franchisor designates in other sections of this Agreement or elsewhere as confidential (collectively "Confidential Information"). Franchisee may disclose Confidential Information that is required for the operation of the Franchised Business to its employees who must have access to it in order to perform their job duties for the operation of the Franchised Business. Franchisee shall take such precautions to ensure that its employees retain such information in confidence, including when Franchisor deems it appropriate, the execution by each such employee of a nondisclosure and noncompetition agreement provided by Franchisor (the "Nondisclosure Agreement"). If required by Franchisor, the Nondisclosure Agreement must (a) be executed at the earlier of the commencement of employment or the commencement of training of the respective employee, and (b) comply with the law of the state where the Franchised Business is located including without limitation all requirements pertaining to the validity and enforceability of the Nondisclosure Agreement. The Nondisclosure Agreement will be in a form prescribed by Franchisor and will include, without limitation, specific identification of Franchisor as a third-party beneficiary of the Nondisclosure Agreement with the
Franchise Agreement (Ver 04-14-2025) Franchisee: ___________
Franchisor: Christian Brothers Automotive Corporation
independent right to enforce it.
Source: Item 23 — RECEIPTS (FDD pages 76–372)
What This Means (2025 FDD)
According to the 2025 Christian Brothers Automotive Franchise Disclosure Document, a franchisee's employee must execute a Nondisclosure Agreement at the earlier of the commencement of employment or the commencement of training, if required by Christian Brothers Automotive. The agreement must also comply with the law of the state where the franchised business is located.
Christian Brothers Automotive requires franchisees to ensure their employees keep confidential information secure. This includes having employees sign a Nondisclosure Agreement, if Christian Brothers Automotive deems it appropriate. The Nondisclosure Agreement protects Christian Brothers Automotive's confidential information and systems.
The Nondisclosure Agreement will be in a form prescribed by Christian Brothers Automotive and will identify Christian Brothers Automotive as a third-party beneficiary with the right to enforce it. The franchisee must provide copies of all executed Nondisclosure Agreements to Christian Brothers Automotive within ten days of their execution.
This requirement ensures that Christian Brothers Automotive's proprietary information remains protected, which is a common practice in franchising to maintain brand standards and operational consistency across all locations. Franchisees must adhere to these requirements to remain in compliance with the franchise agreement.