Besides base rent, what other lease-related costs are Christian Brothers Automotive franchisees responsible for?
Christian_Brothers_Automotive Franchise · 2025 FDDAnswer from 2025 FDD Document
For new CBA stores, the initial term of the lease will be 15 years, and the initial monthly lease payment will be approximately $22,000 to $38,000 for base rent, plus all triple net costs (insurance, maintenance, property tax, sales tax, property owner association dues and common area maintenance, if applicable).
CBAC does not currently require you to give a security deposit to CBAC or an affiliate, but you will be required to pay all insurance premiums, property taxes, repairs & maintenance, association dues and utilities
owed in connection with your use and operation of the leased premises, plus all other costs, if any, specified in the Commercial Lease Agreement or the Commercial Sub-Lease Agreement. Each year the base rent will increase by 1.5% on the anniversary of your lease commencement for new CBA stores, or the existing date for transition stores (unless otherwise agreed by CBAC and the buyer). It will be your responsibility to monitor and appeal property tax assessments for your leased building. CBAC will advise or assist you upon request.
Source: Item 6 — OTHER FEES (FDD pages 17–25)
What This Means (2025 FDD)
According to Christian Brothers Automotive's 2025 Franchise Disclosure Document, in addition to the base rent, franchisees are responsible for several other lease-related costs. For new Christian Brothers Automotive stores, the initial monthly lease payment ranges from approximately $22,000 to $38,000 for base rent. This amount can fluctuate based on the cost of land, development, and construction.
Beyond the base rent, franchisees must cover all triple net costs, which include insurance, maintenance, property tax, sales tax, property owner association dues, and common area maintenance, if applicable. Franchisees are also responsible for paying all insurance premiums, property taxes, repairs and maintenance, association dues, and utilities connected with the use and operation of the leased premises, along with any other costs specified in the Commercial Lease Agreement or the Commercial Sub-Lease Agreement.
Christian Brothers Automotive franchisees should also be aware that the base rent for new stores increases by 1.5% annually on the anniversary of the lease commencement. Franchisees are responsible for monitoring and appealing property tax assessments for their leased building, although Christian Brothers Automotive will provide advice or assistance upon request. For transition stores, the initial term equals the remainder of the current term under the seller's lease agreement, and the rent equals the rent amount under the current term of the seller's lease agreement, unless Christian Brothers Automotive and the buyer agree otherwise.