Under what circumstances can a Christian Brothers Automotive franchisee seek treble damages?
Christian_Brothers_Automotive Franchise · 2025 FDDAnswer from 2025 FDD Document
However, Franchisee may bring a lawsuit in Maryland for claims arising under the Maryland Franchise Registration and Disclosure Law.
- Acknowledgements. The following language is added as a new Section 22.01(i) of the Agreement:
All representations requiring prospective franchisees to assent to a release, estoppel or waiver of liability are not intended to nor shall they act as a release, estoppel or waiver of any liability incurred under the Maryland Franchise Registration and Disclosure Law.
The following language is added as a new Section 18 of Exhibit D (Store In Distress Support Program Agreement) of the Agreement:
All representations requiring prospective franchisees to assent to a release, estoppel or waiver of liability are not intended to nor shall they act as a release, estoppel or waiver of any liability incurred under the Maryland Franchise Registration and Disclosure Law.
6. Franchisee Disclosure Acknowledgment Statement.
The following language is added to amend the Disclosure Document and the Agreement:
No statement, questionnaire, or acknowledgment signed or agreed to by a franchisee in connection with the commencement of the franchise relationship shall have the effect of (i) waiving any claims under any applicable state franchise law, including fraud in the inducement, or (ii) disclaiming reliance on any statement made by any franchisor, franchise seller, or other person acting on behalf of the franchisor. This provision supersedes any other term of any document executed in connection with the franchise.
Source: Item 22 — CONTRACTS (FDD page 76)
What This Means (2025 FDD)
The 2025 Franchise Disclosure Document for Christian Brothers Automotive does not specify the circumstances in which a franchisee can seek treble damages. The document includes amendments to the franchise agreement for several states, including Maryland, Minnesota, Indiana and New York, addressing franchisees' rights and waivers, but it does not detail when treble damages would be applicable.
However, the FDD does state that franchisees may bring a lawsuit in Maryland for claims arising under the Maryland Franchise Registration and Disclosure Law. The agreement also 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 statements made by Christian Brothers Automotive. This provision is intended to supersede any other conflicting terms in the franchise agreement.
Because the FDD does not provide specific information regarding treble damages, prospective franchisees should seek clarification from Christian Brothers Automotive regarding the conditions under which such damages may be pursued. It would also be prudent to consult with a legal professional to understand their rights and potential remedies under applicable state and federal laws.