Appeals Court Upholds Religious Franchise Requirements for Auto Repair Chain

A federal appeals court has ruled that Christian Brothers Automotive Corporation may legally restrict its franchise opportunities to professing Christians. The unanimous decision by a three-judge panel of the 5th U.S. Circuit Court of Appeals dismissed a lawsuit filed by Evan Domanic, a Jewish applicant who alleged that the company’s rejection of his 2020 application constituted ethnic discrimination.

The court rejected Domanic’s argument that his Jewish faith and ethnicity were inseparable under federal law. Writing for the panel, Circuit Judge Stuart Kyle Duncan stated that the company’s policy is based on religious criteria, which falls outside the scope of Section 1981 of the Civil Rights Act. The court noted that while the statute prohibits racial and ethnic discrimination in contractual relationships, it does not extend to religious discrimination.

Christian Brothers Automotive, which operates over 250 locations, maintains that its franchisees must be spiritually aligned with the company’s mission to glorify God. The company requires applicants to share a personal Christian testimony as part of its vetting process. The ruling affirms the lower court's summary judgment in favor of the auto repair chain.