What is the definition of 'Lessor' in the context of the Christian Brothers Automotive Commercial Sub-lease agreement?
Christian_Brothers_Automotive Franchise · 2025 FDDAnswer from 2025 FDD Document
n. Tenant will take possession of the Premises within five days of receiving notice that the Premises are Substantially Completed (as such term is defined in the Master Lease).
5. Payment of Rent.
- a. Tenant will pay Lessor the following amounts during the following periods: (a) $22,000- $36,000 per month for the first one year period of this Lease (the exact amount will be as Lessor notifies Tenant in the Lease Term Letter) commencing on the Commencement Date (subject to the provisions of subsection (e), below) and on the first day of each calendar month thereafter; and (b) on each one year anniversary of this Lease, the rent for the next one year period of this Lease will be established by increasing the amount of the rent that was paid for the previous one year period by one and one-half percent. For example, at the end of the first year of the Lease, the rent paid for the initial one year period will be multiplied by one hundred and one and one-half percent and the product will become the rent for the next one year period (x multiplied by 101.5% = y; where x = rent for previous one year period and y = rent for subsequent one year p
Source: Item 23 — RECEIPTS (FDD pages 76–372)
What This Means (2025 FDD)
Based on the 2025 Franchise Disclosure Document, the Lessor in the Commercial Sub-Lease Agreement for a Christian Brothers Automotive franchise is Christian Brothers Automotive Corporation. The franchisee, as the tenant, will be required to make payments to Christian Brothers Automotive, the Lessor, according to the terms outlined in the lease agreement.
The document specifies that the tenant (franchisee) will pay the lessor (Christian Brothers Automotive) a monthly rent amount ranging from $22,000 to $36,000 for the first year of the lease. The exact amount will be communicated to the tenant in the Lease Term Letter. This payment is due on the first day of each calendar month, starting from the commencement date.
Furthermore, the lease agreement includes a provision for annual rent increases. Each year, the rent will increase by one and one-half percent (1.5%) of the previous year's rent. This increase will be applied at the end of each one-year period throughout the lease term, including any renewals or extensions, to determine the rent for the subsequent year. This ensures that the rental payments keep pace with market conditions and maintain the value of the lease for Christian Brothers Automotive.