Where are rent payments for a Christian Brothers Automotive location to be sent?
Christian_Brothers_Automotive Franchise · 2025 FDDAnswer from 2025 FDD Document
r the third one year period. This process will be continued at the end of each one year period of the Lease (including all renewals and extensions) to establish the rent for the next one year period.
- b. 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). If the Commencement Date occurs on a date other than the 1st day of a calendar month, then the first installment of rent shall be due on the Commencement Date (subject to the provisions of subsection (e), below), and shall be prorated for the actual number of days in such calendar month following the Commencement Date. If all rent is not paid on or before the 10th day of each month thereafter, Tenant must pay a late charge of $200.00 plus $10 per day until all past due rent is paid, and for the avoidance of doubt, Tenant shall be responsible for any late fees due under the Master Lease, to the extent that Tenant's delinquency causes Lessor to be delinquent in payment of rent under the Master Lease. Tenant further agrees to pay a $20.00 charge for each rent check returned unpaid, and delinquent charges will accrue as if no check had been given until such check is made good. Notwithstanding any notations on a check, all payments by Tenant will be applied first to non-rent items due, if any, and then to rent.
- c. Lessor may require that all sums due under this Lease be paid in cash, money order, cashier's check or by automatic payment from Tenant's account.
Source: Item 23 — RECEIPTS (FDD pages 76–372)
What This Means (2025 FDD)
According to the 2025 Christian Brothers Automotive Franchise Agreement, rent payments are to be sent to the Lessor's offices. The address for these payments is 17725 Katy Freeway, Houston, Texas 77094. These payments are to be made in advance and without demand on or before the 1st day of each month, commencing on the Commencement Date. There is no grace period for these payments, although subsection (e) may contain further provisions.
The monthly rent for a Christian Brothers Automotive franchise ranges from $22,000 to $36,000 for the first year of the lease. The exact amount will be specified by the Lessor in the Lease Term Letter. Each subsequent year, the rent will increase by one and one-half percent of the previous year's rent. This increase will be applied at the end of each one-year period of the lease, including all renewals and extensions, to determine the rent for the following year.
For a prospective Christian Brothers Automotive franchisee, it is crucial to note the specific rental amount in the Lease Term Letter, as it falls within a significant range. Franchisees should also factor in the annual rent increase of 1.5% when projecting their operating expenses. Ensuring timely rent payments to the specified address is essential to avoid any lease violations or penalties. Understanding and adhering to these payment terms are vital for maintaining a good standing with the Lessor and the franchisor.