Under what grounds can a Christian Brothers Automotive franchisee terminate the franchise agreement?
Christian_Brothers_Automotive Franchise · 2025 FDDAnswer from 2025 FDD Document
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- The following language replaces the "Summary" section of Item 17(d), titled "Termination by a franchisee": "You may terminate the agreement on any grounds available by law."
Source: Item 22 — CONTRACTS (FDD page 76)
What This Means (2025 FDD)
According to the 2025 Christian Brothers Automotive Franchise Disclosure Document, a franchisee can terminate the franchise agreement on any grounds available by law. This is according to an amendment to the standard franchise agreement, which replaces the "Summary" section of Item 17(d), titled "Termination by a franchisee".
This means that a Christian Brothers Automotive franchisee's ability to terminate the agreement is not limited to specific causes outlined in the franchise agreement itself. Instead, the franchisee can rely on any legal basis for termination that exists under applicable federal, state, or local laws. This could include breaches of contract by the franchisor, misrepresentation, or other legal grounds for ending an agreement.
This modification provides franchisees with broader protections and flexibility compared to a standard franchise agreement where termination rights are often narrowly defined and favor the franchisor. Prospective franchisees should consult with an attorney to fully understand their rights and options for termination under the laws governing their specific franchise agreement and location. This also means that the franchisee should be aware of the laws in their state regarding franchise agreements.