Does Christian Brothers Automotive have unrestricted discretion to change the automotive services offered by franchisees?
Christian_Brothers_Automotive Franchise · 2025 FDDAnswer from 2025 FDD Document
9.07 Sources of Supply. Franchisor agrees that where Franchisee is required to use a supplier or vendor designated by Franchisor, Franchisor will review any alternative supplier or product requested by Franchisee and determine whether Franchisee may use such supplier or product in lieu of the Franchisor designated supplier or product. Franchisor expressly reserves: (a) the right to test, analyze, inspect or randomly sample the product or service of any supplier including any supplier that is proposed by Franchisee, and (b) the right to modify the specifications for all equipment and supplies and qualifications for all service providers from time to time in its sole and exclusive discretion.
Source: Item 16 — RESTRICTIONS ON WHAT THE FRANCHISEE MAY SELL (FDD page 58)
What This Means (2025 FDD)
According to the 2025 Christian Brothers Automotive Franchise Disclosure Document, Christian Brothers Automotive retains the right to modify the specifications for equipment, supplies, and service provider qualifications. Specifically, Christian Brothers Automotive reserves the right to test, analyze, inspect, or randomly sample the product or service of any supplier, including those proposed by the franchisee. The franchisee is responsible for reimbursing Christian Brothers Automotive for the documented costs of this testing, analysis, inspection, or sampling, regardless of whether the supplier is ultimately approved.
This means that while franchisees can suggest alternative suppliers or products, Christian Brothers Automotive has the final say in approving them. Christian Brothers Automotive can also change the required equipment, supplies, and service providers at its discretion. This gives Christian Brothers Automotive significant control over the quality and consistency of services provided under the Christian Brothers Automotive brand.
While Christian Brothers Automotive retains the right to establish and periodically modify the System, the franchisee retains the right and sole responsibility for the day-to-day management and operation of the Franchised Business and the implementation and maintenance of System standards at the Franchised Business. Prospective franchisees should consider that Christian Brothers Automotive's ability to modify service offerings and supplier requirements could impact their operational costs and potentially require them to adapt to new standards or procedures.