Under what conditions does Christian Brothers Automotive have the option to purchase the franchised business?

According to the 2025 Christian Brothers Automotive Franchise Disclosure Document, Christian Brothers Automotive has the option to purchase the franchised business if the franchisee fails to fully comply with Section 4 of the Store In Distress Support Program agreement and the Franchise Agreement is terminated. In such a case, Christian Brothers Automotive may exercise its option to purchase the franchised business as described in Section 15.08 of the Franchise Agreement, in addition to any other post-termination contractual rights they may have.

This provision is part of the Store In Distress Support Program, which suggests it applies when a franchise location is underperforming or facing operational difficulties. The reference to Section 4 of the Store In Distress Support Program agreement indicates that specific compliance failures within that program trigger Christian Brothers Automotive's purchase option. Section 15.08 of the Franchise Agreement likely outlines the specific procedures and terms of the purchase option, which would include valuation methods and payment terms.

For a prospective franchisee, this means that failing to meet the requirements of the Store In Distress Support Program, should they enter into it, could lead to the termination of their franchise agreement and the potential sale of their business back to Christian Brothers Automotive. It is important for franchisees to understand the conditions under which this purchase option can be exercised and to ensure they are in compliance with both the Franchise Agreement and any additional agreements like the Store In Distress Support Program. Franchisees should seek legal counsel to fully understand their obligations and the potential consequences of non-compliance.