What is the consequence for a Christian Brothers Automotive tenant if rent is not paid on time?
Christian_Brothers_Automotive Franchise · 2025 FDDAnswer from 2025 FDD Document
rent shall be due on the Commencement Date (subject to the provisions of subsection (e), below), and shall be prorated for the actual number of days in such calendar month following the Commencement Date. If all rent is not paid on or before the 10th day of each month thereafter, Tenant must pay a late charge of $200.00 plus $10 per day until all past due rent is paid, and for the avoidance of doubt, Tenant shall be responsible for any late fees due under the Master Lease, to the extent that Tenant's delinquency causes Lessor to be delinquent in payment of rent under the Master Lease. Tenant further agrees to pay a $20.00 charge for each rent check returned unpaid, and delinquent charges will accrue as if no check had been given until such check is made good. Notwithstanding any notations on a check, all payments by Tenant will be applied first to non-rent items due, if any, and then to rent.
- c. Lessor may require that all sums due under this Lease be paid in cash, money order, cashier's check or by automatic payment from Tenant's account. If requested by Lessor, Tenant agrees to execute and deliver to Lessor the authorizations, agreements and other documents and instructions necessary or appropriate to authorize automatic payment from Tenant's bank account of the rent due under this Lease each month. If the amount of the
rent payment changes at any time during the term of this Lease or renewals, Lessor agrees to notify Tenant of the change and the amount of the new payment, and Tenant agrees to execute and deliver to Lessor any and all authorizations and agreements necessary to adjust the amount of such automatic payment, if needed.
- d. Tenant and Lessor agree that all rights of Tenant and all duties and obligations of Lessor in this Lease are conditioned on rent bein
Source: Item 23 — RECEIPTS (FDD pages 76–372)
What This Means (2025 FDD)
According to the 2025 Christian Brothers Automotive Franchise Disclosure Document, rent is due in advance without demand at the Lessor's offices on or before the 1st day of each month, without a grace period. If rent is not paid by the 10th day of the month, the tenant must pay a late charge of $200 plus $10 per day until all past due rent is paid.
Furthermore, the Christian Brothers Automotive tenant is responsible for any late fees due under the Master Lease, to the extent that the tenant's delinquency causes the Lessor to be delinquent in payment of rent under the Master Lease. There is also a $20 charge for each rent check returned unpaid, and delinquent charges will accrue as if no check had been given until the check is made good.
Christian Brothers Automotive may require that all sums due under the lease be paid in cash, money order, cashier's check, or by automatic payment from the tenant's account. All rights of the tenant and all duties and obligations of the Lessor in the lease are conditioned on rent being paid on time. The tenant's right of possession and all of the Lessor's obligations are expressly conditioned on prompt payment of rent, and use of the premises by the tenant is conditioned on prompt payment of rent.