What documents related to insurance must a Christian Brothers Automotive tenant deliver to the Lessor?
Christian_Brothers_Automotive Franchise · 2025 FDDAnswer from 2025 FDD Document
Tenant must deliver to Lessor copies of the insurance policies, any endorsements required by Lessor or Owner, and certificates of such insurance certifying that the same is in full force and effect.
The types of insurance required by Lessor hereunder can be expanded and the amounts of insurance required by Lessor hereunder can be increased at any time by Lessor notifying Tenant of the type and amount of insurance that must be obtained and/or the amount by which an existing policy must be increased.
Tenant must obtain such increased insurance coverage (type and/or amount) as promptly as is reasonably possible.
If Tenant fails to acquire or maintain the insurance required pursuant to this Lease or to pay the premiums for such insurance and deliver the certificates of coverage after notice from Lessor, such failure is a default hereunder and Lessor may, in addition to other rights and remedies available to Lessor, acquire such insurance and/or pay the requisite premiums therefor.
Such premiums so paid by Lessor will be reimbursable and payable by Tenant immediately upon written demand therefor made to Tenant by Lessor.
Source: Item 23 — RECEIPTS (FDD pages 76–372)
What This Means (2025 FDD)
According to the 2025 Franchise Disclosure Document, a Christian Brothers Automotive tenant is required to provide the Lessor with specific insurance-related documents. These include copies of the insurance policies themselves, any endorsements that the Lessor or Owner might require, and certificates of insurance. These certificates must verify that the insurance is currently active and in full force.
This requirement ensures that the Lessor is fully informed about the insurance coverage in place for the property. By having copies of the policies and endorsements, the Lessor can verify the specifics of the coverage, including the types of risks covered, the coverage amounts, and any conditions or exclusions. The certificates of insurance provide ongoing confirmation that the required coverage remains in effect.
Christian Brothers Automotive also has the right to increase the types and amounts of insurance required at any time by notifying the tenant. The tenant is then responsible for obtaining the increased coverage as promptly as reasonably possible. This flexibility allows Christian Brothers Automotive to adapt insurance requirements to changing circumstances or increased risks, ensuring adequate protection for all parties involved.
If a tenant fails to provide the required insurance documentation or maintain the necessary coverage, it constitutes a default under the lease agreement. In such cases, the Lessor has the right to acquire the insurance and pay the premiums, with the tenant being responsible for reimbursing the Lessor immediately upon written demand. This provision protects the Lessor's interests and ensures that the property remains adequately insured, even if the tenant fails to fulfill their obligations.