How many options to extend the lease term does Christian Brothers Automotive grant to the tenant?
Christian_Brothers_Automotive Franchise · 2025 FDDAnswer from 2025 FDD Document
- b. Renewals: Lessor grants Tenant three (3) consecutive options to extend the term of the Lease for five (5) year periods (each, a "Renewal Term"), provided that if the Lessor is unable to successfully obtain a necessary renewal of the Master Lease from the Owner, Tenant shall not be entitled to exercise any option where the renewal period will exceed the term of the Master Lease. To exercise an option, Tenant shall deliver written notice to Lessor of its intention to renew the Term (an "Exercise Notice") on or before one hundred and eighty days (180 days) prior to the expiration of the Initial Term or then current Renewal Term. The Initial Term, together with any Renewal Term exercised pursuant to this Section 2, may be referred to herein as the "Term."
Source: Item 23 — RECEIPTS (FDD pages 76–372)
What This Means (2025 FDD)
According to the 2025 Christian Brothers Automotive Franchise Disclosure Document, Christian Brothers Automotive grants the tenant three consecutive options to extend the lease term. Each extension is for a period of five years. These periods are referred to as "Renewal Terms."
However, there is a condition attached to these renewal options. If Christian Brothers Automotive, as the lessor, cannot successfully obtain a necessary renewal of the Master Lease from the Owner, the tenant will not be able to exercise any option where the renewal period would exceed the term of the Master Lease. This means that the franchisee's ability to extend the lease depends on Christian Brothers Automotive's own lease agreement with the property owner.
To exercise any of these renewal options, the tenant must provide written notice to Christian Brothers Automotive of their intention to renew the term. This notice, called an "Exercise Notice," must be delivered at least 180 days prior to the expiration of the current term, whether it's the initial term or a subsequent Renewal Term. The initial term, along with any exercised Renewal Terms, is collectively referred to as the "Term."