Under what conditions does Christian Brothers Automotive establish liabilities in connection with legal actions?
Christian_Brothers_Automotive Franchise · 2025 FDDAnswer from 2025 FDD Document
and to carry on its business as presently conducted, and it is duly and properly qualified to carry on its business in those jurisdictions where qualification is necessary for the conduct of its business;
- h. Performance Authority. Franchisee has all necessary legal power to enter into this Agreement and to perform its obligations hereunder and the execution and delivery of this Agreement and the completion of the transactions contemplated in this Agreement have been duly authorized by all necessary organizational actions on its part; and
- i. Legal Obligation. This Agreement constitutes a legal, valid and binding obligation of Franchisee enforceable in accordance with its terms.
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- Departure from System. Franchisee agrees that upon termination of the Franchise Agreement, Franchisee and Guarantor shall remove themselves from the Christian Brothers Automotive System in all aspects and roles relating directly or indirectly to any part of the Christian Brothers Automotive franchise business, including, but not limited to, franchise owner, investor, manager, consultant or employee, unless Franchisee receives the prior written consent of Franchisor.
9. Remedies on Breach.
- a. Termination. In the event Franchisee breaches this Agreement, Franchisor shall have the right to immediately terminate this Agreement and the Franchise Agreement.
- b. Injunctive Relief. The parties agree and understand that any breach of this Agreement will result in irreparable harm to the other, for which monetary damages may be an inadequate remedy. In the enforcement of this Agreement or to remedy any breach, a party may seek injunctive or equitable relief without the necessity of proving irreparable harm or inadequate remedy at law and without the need to post a bond (other than its corporate bond without the need for a surety thereon). A request for injunctive relief does not foreclose Franchisor's ability to pursue other remedies, as provided hereunder or under applicable law.
- c. Fees.
Source: Item 23 — RECEIPTS (FDD pages 76–372)
What This Means (2025 FDD)
Based on the 2025 Christian Brothers Automotive Franchise Disclosure Document, the franchisee has certain obligations that are legally binding. The agreement specifies that the franchisee has the legal power and authority to enter into the Franchise Agreement and fulfill its obligations. This means the franchisee is expected to adhere to the terms outlined in the agreement, and failure to do so could result in legal consequences. The franchise agreement is considered a valid and binding obligation, enforceable under its terms.
If the franchisee breaches the agreement, Christian Brothers Automotive has remedies available. For example, if the franchisee fails to comply with the non-compete clause (Section 16), the duration of that clause can be extended by the amount of time the franchisee was in violation. This ensures that Christian Brothers Automotive can protect its interests and system standards.
The Franchise Disclosure Document also states that no delay in enforcing any breach of the agreement will be considered a waiver of any other breach. This means that Christian Brothers Automotive's decision not to immediately enforce a specific term or condition does not prevent them from enforcing it later or addressing other violations. The acceptance of payments from the franchisee does not waive any breaches of the agreement's terms. This protects Christian Brothers Automotive's right to take action against any violations, regardless of whether payments have been accepted.