For Christian Brothers Automotive, what is the role of a 'Broker' as defined in the Acknowledgment Statement?
Christian_Brothers_Automotive Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
Source: Item 22 — CONTRACTS (FDD page 76)
What This Means (2025 FDD)
According to Christian Brothers Automotive's 2025 Franchise Disclosure Document, a 'Broker' in the context of the Franchisee Disclosure Acknowledgment Statement refers to an employee or authorized representative of a broker acting on behalf of Christian Brothers Automotive. Their role is to communicate information to potential franchisees. Christian Brothers Automotive uses the Acknowledgment Statement to confirm that prospective franchisees are not relying on unauthorized or misrepresented information from these brokers or other representatives during negotiations.
This is important for prospective franchisees because it emphasizes the need to verify all information received from brokers or representatives with the official Franchise Disclosure Document provided by Christian Brothers Automotive. Franchisees should ensure that any promises or representations made by a broker are authorized by Christian Brothers Automotive and accurately reflected in the FDD. This helps protect the franchisee from potential misinformation or misinterpretations that could affect their business decision.
The acknowledgment statement serves to protect Christian Brothers Automotive from liability related to unauthorized representations made by brokers. However, it is important to note that in certain states like Washington, these acknowledgments do not waive any liability the franchisor may have under franchise investment protection laws. Franchisees should be aware of their rights under state laws and consult with an attorney if they have any concerns about the information they have received during the franchise process.