factual

What state's laws govern the Christian Brothers Automotive franchise agreement?

Christian_Brothers_Automotive Franchise · 2025 FDD

Answer from 2025 FDD Document

  • (e) Choice of Law. This Agreement shall be construed and interpreted in under and in accordance with the laws of the State of Texas.

Source: Item 22 — CONTRACTS (FDD page 76)

What This Means (2025 FDD)

According to Christian Brothers Automotive's 2025 Franchise Disclosure Document, the franchise agreement is generally governed by the laws of the State of Texas. This means that the agreement's construction and interpretation will be under and in accordance with Texas law.

However, the FDD includes amendments for franchisees in specific states like Minnesota, New York, Virginia, Indiana, and Illinois. These amendments modify the standard agreement to comply with state-specific franchise laws. For example, these amendments often include provisions that ensure franchisees do not waive rights granted to them under state franchise laws, regardless of what the standard agreement might say. These amendments also address issues such as the timing of providing the Franchise Disclosure Document to prospective franchisees, as seen in the requirements for New York, Rhode Island, and Michigan.

Prospective franchisees should carefully review the specific amendment (if any) that applies to their state to understand how it modifies the general terms of the franchise agreement. Franchisees should also be aware that Christian Brothers Automotive reserves the right to challenge the enforceability of any state law that declares a provision in the agreement void or unenforceable. This highlights the importance of consulting with a legal professional to fully understand their rights and obligations under both the franchise agreement and applicable state laws.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.