factual

Under what circumstances can a Christian Brothers Automotive franchisee disclose Confidential Information?

Christian_Brothers_Automotive Franchise · 2025 FDD

Answer from 2025 FDD Document

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.

  1. 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").

Source: Item 23 — RECEIPTS (FDD pages 76–372)

What This Means (2025 FDD)

According to the 2025 Christian Brothers Automotive Franchise Disclosure Document, franchisees are generally prohibited from disclosing Confidential Information. However, there are specific circumstances under which disclosure is permitted. Franchisees can disclose Confidential Information to their employees if the information is required for them to perform their job duties related to operating the franchised business.

To ensure confidentiality is maintained, Christian Brothers Automotive requires franchisees to take precautions, including having employees sign a Nondisclosure Agreement. This agreement, provided by Christian Brothers Automotive, must be executed when the employee starts working or training. The Nondisclosure Agreement has to comply with the laws of the state where the franchise is located to ensure it is valid and enforceable. Christian Brothers Automotive is also identified as a third-party beneficiary of this agreement, giving them the right to enforce it independently. Franchisees must provide copies of these executed agreements to Christian Brothers Automotive within ten days of execution.

In addition to employee disclosure, franchisees may be legally obligated to notify customers about data theft or loss. In such cases, the franchisee must promptly inform Christian Brothers Automotive in writing after determining they have a legal obligation to notify customers. The notices to customers must be limited to what is legally required or pre-approved by Christian Brothers Automotive. The franchisee is also expected to cooperate with Christian Brothers Automotive in sending these notices if requested. These measures are in place to protect sensitive information and maintain consistent communication regarding data security incidents.

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.