If the premises of a Christian Brothers Automotive location are destroyed, is there any abatement of rent?

According to Christian Brothers Automotive's 2025 Franchise Disclosure Document, in the event that the premises are partially or totally destroyed or damaged by fire or other casualty, whether or not covered by insurance, there will be no abatement of rent. The lease agreement stipulates that the Lessor has the discretion to either obligate the Tenant (the franchisee) to rebuild or restore the premises, or the Lessor may use available insurance proceeds to rebuild or restore the premises to its prior condition, according to the Lessor's plans and specifications.

Regardless of whether the franchisee or franchisor rebuilds or restores the premises, all insurance proceeds will be available to the Lessor or Tenant for such purpose, and rent payments will continue without abatement. This means that a Christian Brothers Automotive franchisee is responsible for paying rent even during the period when the premises are unusable due to damage or destruction, which could create a significant financial burden.

However, there is an exception: if the destruction or damage occurs during the last twelve months of the initial term or any extension term, the franchisee has the option to terminate the lease by providing written notice to the Lessor within sixty days of the event. In this case, the Lessor is entitled to all of the insurance proceeds. This provides some limited protection to the franchisee near the end of the lease term, allowing them to avoid continued rent payments on an unusable property, but forfeiting any claim to insurance funds.