What systems of operation are considered Confidential Information for a Christian Brothers Automotive franchise?
Christian_Brothers_Automotive Franchise · 2025 FDDAnswer from 2025 FDD Document
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Franchisee's employees are not employees of Franchisor or its affiliates.
Franchise Agreement (Ver 04-14-2025)
Franchisee: ___________
Franchisor: Christian Brothers Automotive Corporation
7. CONFIDENTIAL INFORMATION.
7.01 Non-Use and Non-Disclosure of Confidential Information. Except as otherwise stated herein, Franchisee shall not, during the term of this Agreement or at any time thereafter, communicate, divulge or use for the benefit of any other person, persons, partnership, association, corporation or entity the Confidential Operations Manual, any information, knowledge or Know-How concerning the systems of operation, products, services, procedures, policies, standards, criteria or Customers, Customer Information, Data and/or any other information which Franchisor designates in other sections of this Agreement or elsewhere as confidential (collectively "Confidential Information"). Franchisee may disclose Confidential Information that is required for the operation of the Franchised Business to its employees who must have access to it in order to perform their job duties for the operation of the Franchised Business. Franchisee shall take such precautions to ensure that its employees retain such information in confidence, including when Franchisor deems it appropriate, the execution by each such employee of a nondisclosure and noncompetition agreement provided by Franchisor (the "Nondisclosure Agreement"). If required by Franchisor, the Nondisclosure Agreement must (a) be executed at the earlier of the commencement of employment or the commencement of training of the respective employee, and (b) comply with the law of the state where the Franchised Business is located including without limitation all requirements pertaining to the validity and enforceability of the Nondisclosure Agreement. The Nondisclosure Agreement will be in a form prescribed by Franchisor and will include, without limitation, specific identification of Franchisor as a third-party beneficiary of the Nondisclosure Agreement with the
Franchise Agreement (Ver 04-14-2025) Franchisee: ___________
Franchisor: Christian Brothers Automotive Corporation
independent right to enforce it. Franchisee will submit copies of all such executed
Nondisclosure Agreements to Franchisor within ten (10) days of their execution.
- ADVERTISING AND MARKETING.
8.01 Advertising Standards. Franchisee will only use such advertising, identification and
promotional materials and programs (including, but not limited to, printed and broadcast
advertisements, stationery, business cards, press releases, signs, displays, leaflets,
newspaper inserts, promotional mail outs and promotional literature) which have been
furnished by Franchisor or been approved in advance by Franchisor in accordance with
Section 8.04. All advertising by Franchisee shall be conducted in a dignified manner, shall
conform to such standards, specifications and requirements as Franchisor may specify from
time to time in writing, in its Confidential Operations Manual or otherwise, and shall not
in any way detract from, reflect unfavorably upon, or denigrate the Marks, the System, the
products, or Franchisor.
8.02 Administration of Franchisor's Marketing Program. Franchisor or its designee may
administer Marketing Funds (as defined below) as follows:
(a) As provided in Section 4.02 of this Agreement, if Franchisor establishes any
Programs, Franchisee will pay to Franchisor a "Marketing Fee" of up to the
Maximum Annual Cost per Program fund per year. The Marketing Fee will be
combined with contributions made by all other franchisees of Franchisor that are
members of that Program to create marketing funds (the "Marketing Funds").
(b) Franchisor will have sole discretion over the creative concepts, materials and media
used in such Program, and the placement and allocation of advertising.
Source: Item 23 — RECEIPTS (FDD pages 76–372)
What This Means (2025 FDD)
According to the 2025 Christian Brothers Automotive Franchise Disclosure Document, Confidential Information includes the Confidential Operations Manual and any information, knowledge, or know-how concerning the systems of operation, products, services, procedures, policies, standards, criteria, Customers, Customer Information, and Data. This also extends to any other information that Christian Brothers Automotive designates as confidential within the agreement or elsewhere. Franchisees must not disclose or use this information for the benefit of any other person or entity during the term of the agreement or at any time thereafter.
Christian Brothers Automotive grants franchisees online access to its Confidential Operations Manual to maintain uniform service and operational standards, promote goodwill, and protect its reputation. The manual's subject matter includes standards, procedures, policies, and specifications pertaining to the System and the operation of the franchised business. Christian Brothers Automotive retains the right to modify the manual, with changes becoming effective upon the franchisee's receipt of notice, typically delivered via electronic mail.
Franchisees are allowed to disclose Confidential Information to their employees who need access to it for their job duties, provided they take precautions to ensure the information remains confidential. Christian Brothers Automotive may require employees to sign a Nondisclosure Agreement, identifying Christian Brothers Automotive as a third-party beneficiary with the right to enforce it. Franchisees must submit copies of these agreements to Christian Brothers Automotive within ten days of execution.
Upon termination of the Franchise Agreement, franchisees are prohibited from using any of Christian Brothers Automotive's trade secrets, procedures, techniques, Confidential Information, or materials acquired during the franchise relationship. This includes information in the Confidential Operations Manual, forms, advertising materials, strategies, Marks, devices, signs, insignia, slogans, designs, and any telephone numbers associated with the franchised business.