What are prospective Christian Brothers Automotive franchisees encouraged to consult regarding arbitration venue restrictions?
Christian_Brothers_Automotive Franchise · 2025 FDDAnswer from 2025 FDD Document
Section 31512 might void a waiver of your rights under the Franchise Investment Law (California Corporations Code Section 31000 – 31516).
Business and Professions Code Section 20010 might void a waiver of your rights under the Franchise Relations Act (Business and Professions Code Sections 20000 – 20043).
- m. No statement, questionnaire, or acknowledgment signed or agreed to by a franchisee in connection with the commencement of the franchise relationship shall have the effect of (i) waiving any claims under any applicable state franchise law, including fraud in the inducement, or (ii) disclaiming reliance on any statement made by any franchisor, franchise seller, or other person acting on behalf of the franchisor. This provision supersedes any other term of any document executed in connection with the franchise.
- n. Any provision of a franchise agreement, franchise disclosure document, acknowledgement, questionnaire, or other writing, including any exhibit thereto, disclaiming or denying any of the following shall be deemed contrary to public policy and shall be void and
Source: Item 22 — CONTRACTS (FDD page 76)
What This Means (2025 FDD)
Based on the 2025 Christian Brothers Automotive Franchise Disclosure Document, specific details about consulting regarding arbitration venue restrictions are not mentioned. However, the document includes several references to state laws that may impact the franchise agreement.
For franchisees in California, the document notes that Section 31512 of the California Corporations Code might void a waiver of rights under the Franchise Investment Law, and Business and Professions Code Section 20010 might void a waiver of rights under the Franchise Relations Act. Similarly, for franchisees in Maryland and Washington, the Franchisee Disclosure Acknowledgment Statement advises against signing if they are residents of those states or if the business is to be operated there. Additionally, the agreement specifies that Texas law governs and any lawsuit brought by Christian Brothers Automotive to enforce its rights shall be brought in the courts of the county where Christian Brothers Automotive has its principal place of business.
Given the lack of explicit guidance on consulting about arbitration venue restrictions, prospective Christian Brothers Automotive franchisees should seek independent legal counsel to understand how these state-specific laws and the franchise agreement's choice of law provision might affect their rights and obligations, particularly concerning dispute resolution and venue selection. This is especially important for franchisees located in or planning to operate in California, Maryland, or Washington, due to the specific legal considerations mentioned for those states.