For Christian Brothers Automotive, what is the purpose of determining if unauthorized statements were made?
Christian_Brothers_Automotive Franchise · 2025 FDDAnswer from 2025 FDD Document
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As you know, Christian Brothers Automotive Corporation (the "Franchisor") and you are preparing to enter into a franchise agreement (the "Franchise Agreement") for the establishment and operation of a Christian Brothers Automotive Corporation franchise ("CBAC franchise"). The purpose of this Questionnaire is to determine whether any statements or promises were made to you by employees or authorized representatives of the Franchisor, or by employees or authorized representatives of a broker acting on behalf of the Franchisor ("Broker") that have not been authorized, or that were not disclosed in the Franchise Disclosure Document or that may be untrue, inaccurate or misleading. The Franchisor, through the use of this document, desires to ascertain (a) that the undersigned, individually and as a representative of any legal entity established to acquire the franchise rights, fully understands and comprehends that the purchase of a franchise is a business decision, complete with its associated risks, and (b) that you are not relying upon any oral statement, representations, promises or assurances during the negotiations for the purchase of the franchise which have not been authorized by Franchisor. This acknowledgment does not waive any liability the franchisor may have under the Washington Franchise Investment Protection Act, RCW 19.100, and the rules adopted thereunder.
In the event that you are intending to purchase an existing CBAC franchise from an existing Franchisee, you may have received information from the transferring Franchisee, who is not an employee or representative of the Franchisor. The questions below do not apply to any communications that you had with the transferring Franchisee. Please review each of the following questions and statements carefully and provide honest and complete responses to each.
| 1. Are you seeking to enter into the Franchise Agreement in connection with a purchase or transfer of an existing CBAC franchise from an existing Franchisee? |
|---|
| Yes |
| No |
| 2. |
Source: Item 22 — CONTRACTS (FDD page 76)
What This Means (2025 FDD)
According to the 2025 Christian Brothers Automotive Franchise Disclosure Document, the purpose of determining whether any unauthorized statements were made is to ensure that the prospective franchisee is not relying on any unauthorized, untrue, inaccurate, or misleading statements or promises made by employees or authorized representatives of Christian Brothers Automotive or brokers acting on their behalf. Christian Brothers Automotive aims to confirm that the franchisee understands that purchasing a franchise is a business decision with associated risks and that they are not depending on any oral statements, representations, promises, or assurances not authorized by the company. This is done through a questionnaire. However, this does not waive any liability the franchisor may have under the Washington Franchise Investment Protection Act.
This acknowledgment is crucial for Christian Brothers Automotive to protect itself from potential legal disputes arising from misunderstandings or misrepresentations made during the franchise sales process. By identifying any unauthorized statements, Christian Brothers Automotive can address them proactively and ensure that the franchisee's expectations are aligned with the information provided in the Franchise Disclosure Document. This process helps to establish a clear understanding of the terms and conditions of the franchise agreement and reduces the likelihood of future claims based on alleged misrepresentations.
It's important to note that if a prospective franchisee is purchasing an existing Christian Brothers Automotive franchise from a transferring franchisee, the questionnaire does not apply to communications with the transferring franchisee, as they are not employees or representatives of Christian Brothers Automotive. Prospective franchisees should carefully review the questionnaire and provide honest and complete responses to ensure transparency and avoid potential issues down the line. Franchisees in California, Maryland, and Washington do not sign the Acknowledgment Statement.