Does the release of claims against Christian Brothers Automotive include unknown claims?
Christian_Brothers_Automotive Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchise Agreement (Ver 04-14-2025)
Franchisee: __________
Franchisor: Christian Brothers Automotive Corporation
behalf of itself, its agents, officers and owners, hereby waives and releases all claims, if any, that it has been fraudulently induced to enter into this Agreement and/or the Commercial Sub-Lease Agreement. Nothing in Section 18.01 is intended to disclaim any of the information contained in Franchisor's Franchise Disclosure Document or its
18.02 No Oral Amendments. This Agreement may not be amended orally, but may be amended only by a written instrument signed by the parties to this Agreement. Franchisee expressly acknowledges that no oral promises or declarations were made to it and that the obligations of the Franchisor are confined exclusively to those set forth in this Agreement. Franchisee understands and assumes the business risks inherent in this enterprise.
Source: Item 23 — RECEIPTS (FDD pages 76–372)
What This Means (2025 FDD)
The 2025 Franchise Disclosure Document for Christian Brothers Automotive states that the franchisee, on behalf of itself, its agents, officers, and owners, waives and releases all claims, if any, that it has been fraudulently induced to enter into the Franchise Agreement and/or the Commercial Sub-Lease Agreement. This waiver is a standard legal protection for the franchisor.
This waiver means that the franchisee gives up the right to sue Christian Brothers Automotive for claims of fraudulent inducement based on information (or lack thereof) that led them to sign the agreement. However, the FDD clarifies that this waiver does not disclaim any of the information contained in Christian Brothers Automotive's Franchise Disclosure Document or its attachments or exhibits. This is an important distinction, as the franchisee is still entitled to rely on the information provided in the FDD itself.
As a prospective franchisee, it is crucial to carefully review the entire Franchise Disclosure Document and any related agreements with legal counsel before signing. Understanding the scope and implications of this waiver is essential to making an informed decision about investing in a Christian Brothers Automotive franchise. While the waiver covers fraudulent inducement, it does not negate the franchisee's right to hold the franchisor accountable for the information presented in the FDD.