What is the grace period for rent payments for a Christian Brothers Automotive franchise?
Christian_Brothers_Automotive Franchise · 2025 FDDAnswer from 2025 FDD Document
Rent is payable in advance and without demand at Lessor's offices located at 17725 Katy Freeway, Houston, Texas 77094, on or before the 1st day of each month commencing on the Commencement Date, without a grace period (subject, however, to the provisions of subsection (e), below).
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 payable in advance and without demand at the Lessor's offices located at 17725 Katy Freeway, Houston, Texas 77094, on or before the 1st day of each month commencing on the Commencement Date. The agreement specifies that there is no grace period for rent payments.
This means that a Christian Brothers Automotive franchisee is obligated to ensure that the rent is received by the Lessor on or before the first day of each month. Failure to pay on time could result in penalties or other actions as defined in the lease agreement.
Franchisees should be aware of this strict payment schedule and plan their finances accordingly to avoid any late payment issues. It is important to note that while there is no grace period, subsection (e) might contain provisions that could affect this, so franchisees should review that section carefully.