Does Christian Brothers Automotive have the right to grant other franchises outside the franchisee's territory?
Christian_Brothers_Automotive Franchise · 2025 FDDAnswer from 2025 FDD Document
2.04 Rights Reserved by Franchisor. The Franchisor has the right to grant other franchises outside of the Territory as Franchisor deems appropriate. Franchisor reserves the right to offer and sell at wholesale all products which comprise, or may in the future comprise a part of the Services and System, which products may be resold at retail to the general public by Franchisor both within and outside of the Territory. Franchisor further reserves the
Source: Item 23 — RECEIPTS (FDD pages 76–372)
What This Means (2025 FDD)
According to the 2025 Christian Brothers Automotive Franchise Disclosure Document, Christian Brothers Automotive retains the right to grant other franchises outside of a franchisee's designated territory as it deems appropriate. The franchisee's rights are specifically limited to offering and selling services within their defined territory, and they are prohibited from soliciting, selling, or performing any services outside of this territory without express written consent from Christian Brothers Automotive. If a franchisee receives an inquiry for services outside their territory, they are obligated to refer the customer to Christian Brothers Automotive or another franchisee assigned to that area.
This means that while a Christian Brothers Automotive franchisee is granted an exclusive territory to operate within, Christian Brothers Automotive maintains control over expansion and market coverage by being able to establish new franchises in other areas. This allows Christian Brothers Automotive to strategically grow its brand presence without being restricted by existing franchisees' territories.
For a prospective franchisee, this implies that their focus must remain within their assigned territory, and they cannot expand beyond it without explicit approval. While they have an exclusive right to solicit sales within their territory, Christian Brothers Automotive can still develop the brand elsewhere. This also means that Christian Brothers Automotive can manage potential conflicts between franchisees by controlling territory assignments and ensuring franchisees direct out-of-territory requests appropriately.