Under what circumstances should the Franchisee Disclosure Acknowledgment Statement NOT be signed for a Christian Brothers Automotive franchise?

According to Christian Brothers Automotive's 2025 Franchise Disclosure Document, the Franchisee Disclosure Acknowledgment Statement should not be signed if the prospective franchisee is a resident of California, Maryland, or Washington, or if the business is to be operated in those states. This instruction is explicitly stated within the document to ensure that franchisees in these states are aware of their rights and protections under state-specific franchise laws. This is because certain provisions within the standard franchise agreement might conflict with the franchise laws of these states.

This instruction is crucial for potential Christian Brothers Automotive franchisees in California, Maryland, and Washington because these states have franchise laws that provide specific protections to franchisees. Signing the Acknowledgment Statement could potentially lead to unintended waivers of rights or misinterpretations of the franchisee's legal standing under these state laws. By advising against signing in these states, Christian Brothers Automotive aims to ensure compliance with local regulations and protect the franchisee's interests.

It is important to note that even if the Franchisee Disclosure Acknowledgment Statement is signed, the FDD states that no statement, questionnaire, or acknowledgment signed by a franchisee can waive claims under any applicable state franchise law, including fraud in the inducement, or disclaim reliance on any statement made by Christian Brothers Automotive or its representatives. This provision is intended to supersede any other conflicting terms in any document executed in connection with the franchise, further safeguarding the franchisee's rights.

Prospective franchisees should carefully review the franchise agreement and disclosure document with legal counsel to fully understand their rights and obligations, especially in states with specific franchise laws like California, Maryland, and Washington. Understanding these nuances can help ensure a smooth and legally sound franchise relationship with Christian Brothers Automotive.