Under the Christian Brothers Automotive Franchise Agreement, what is the Franchisee licensed to operate?
Christian_Brothers_Automotive Franchise · 2025 FDDAnswer from 2025 FDD Document
AS, Franchisor continues to expend time, skill and money to investigate and, if Franchisor deems it desirable, to develop and integrate into the System new procedures, systems, products, and services; and
WHEREAS, Franchisee has applied to obtain a license to operate one Christian Brothers
Automotive Corporation franchise in the Territory described in Section 2.01 of this Agreement for
the purpose of offering and selling Franchisor's services and products under the Marks, Know-
How and System; and
WHEREAS, the parties wish to enter into an Agreement upon the terms and subject to the
conditions set forth in this Agreement.
NOW, THEREFORE, FOR AND IN CONSIDERATION OF THE COVENANTS AND
AGREEMENTS CONTAINED HEREIN AND FOR OTHER GOOD AND VALUABLE
CONSIDERATION, THE RECEIPT AND SUFFICIENCY OF WHICH IS HEREBY
ACKNOWLEDGED, FRANCHISOR AND FRANCHISEE AGREE AS FOLLOWS:
- GRANT OF FRANCHISE AND LICENSE.
1.01 Grant of Franchise. Franchisor hereby grants to Franchisee, and Franchisee accepts, a non-
exclusive license to operate one (1) Christian Brothers Automotive Corporation franchise
(the "Franchised Business") and, to use solely in connection therewith, the Know-How and
System (as they may be changed or developed from time to time), in the Territory (as
defined in Section 2.01 hereof) pursuant to the terms of this Agreement.
1.02 Grant of License to Use Marks. Franchisor grants to Franchisee, and Franchisee accepts,
a nonexclusive license to use and display the Marks in connection with the operation of the
Franchised Business, and the Services (as defined below) in and only in the Territory
described below pursuant to the terms of this Agreement. "Services" shall mean the
services authorized by Franchisor to be offered or provided by Franchisee in connection
with the Franchised Business, including the sale of products authorized by Franchisor.
Franchise Agreement (Ver 04-14-2025)
Franchisee: ___________
Franchisor: Christian Brothers Automotive Corporation
- TERRITORY.
2.01 Territorial Grant. The territory granted to Franchisee by Franchisor which is subject to the
terms of this Agreement shall be the area designated on Exhibit "A" attached to this
Agreement (the "Territory"). Except as expressly provided to the contrary herein,
Franchisee shall have the sole and exclusive right to solicit the sale of the Services within
the Territory.
2.02 Franchisor Restrictions.
Source: Item 23 — RECEIPTS (FDD pages 76–372)
What This Means (2025 FDD)
According to the 2025 Christian Brothers Automotive Franchise Disclosure Document, the franchisee is granted a non-exclusive license to operate one Christian Brothers Automotive franchise. This license allows the franchisee to use the brand's Know-How and System, which may be updated over time, within a defined territory. The franchisee also receives a nonexclusive license to use and display the Christian Brothers Automotive Marks in connection with the operation of the franchised business and the services authorized by the franchisor, including the sale of approved products.
The territory granted to the franchisee is specified in Exhibit "A" of the Franchise Agreement, giving the franchisee the sole and exclusive right to solicit sales of services within that territory. Christian Brothers Automotive agrees not to operate a company-owned outlet or grant another franchise for a similar business within the franchisee's territory, with some exceptions as detailed in Section 2.04 of the agreement. The franchisee's rights are limited to offering and selling only the authorized services within the designated territory, and they must obtain written consent from Christian Brothers Automotive to solicit, sell, or perform services outside of this area.
This arrangement provides the franchisee with the rights to operate under the Christian Brothers Automotive brand, utilize their established systems and knowledge, and market their services within a specific geographic area. However, it also imposes restrictions to ensure brand consistency and prevent market saturation. Prospective franchisees should carefully review Exhibit A to understand the exact boundaries of their territory and Section 2.04 to understand any exceptions to the franchisor's territorial restrictions.