What are 'Services' as defined in the Christian Brothers Automotive franchise agreement?

According to the 2025 Christian Brothers Automotive Franchise Disclosure Document, the term 'Services' is defined within the context of a 'Competitive Business' and the franchisee's covenant not to compete. A 'Competitive Business' includes any business that offers or sells any product or service that is part of the Services or the Franchised Business, or that competes directly or indirectly with the Franchised Business or any franchise of Christian Brothers Automotive.

Specifically, a 'Competitive Business' is defined as any business which generates substantially all of its revenue from the sale of services or other products and services similar to the Services or those offered in the Franchised Business, or a franchisee of Christian Brothers Automotive under the System. This definition is crucial because it restricts the franchisee from engaging in any business that could potentially draw customers away from Christian Brothers Automotive, either during the term of the agreement or for a specified period after its termination or transfer.

This definition ensures that franchisees focus solely on operating their Christian Brothers Automotive franchise and do not divert resources or expertise to competing ventures. The non-compete clause, coupled with the definition of 'Services', protects Christian Brothers Automotive's market position and prevents franchisees from using the franchisor's proprietary information and training to benefit a competing business. Franchisees should carefully consider these restrictions and how they might impact their future business opportunities before entering into the franchise agreement.