What is the Christian Brothers Automotive tenant entitled to if they are occupying the premises and not in default of the lease?
Christian_Brothers_Automotive Franchise · 2025 FDDAnswer from 2025 FDD Document
n. Tenant will take possession of the Premises within five days of receiving notice that the Premises are Substantially Completed (as such term is defined in the Master Lease).
5. Payment of Rent.
- a. Tenant will pay Lessor the following amounts during the following periods: (a) $22,000- $36,000 per month for the first one year period of this Lease (the exact amount will be as Lessor notifies Tenant in the Lease Term Letter) commencing on the Commencement Date (subject to the provisions of subsection (e), below) and on the first day of each calendar month thereafter; and (b) on each one year anniversary of this Lease, the rent for the next one year period of this Lease will be established by increasing the amount of the rent that was paid for the previous one year period by one and one-half percent. For example, at the end of the first year of the Lease, the rent paid for the initial one year period will be multiplied by one hundred and one and one-half percent and the product will become the rent for the next one year period (x multiplied by 101.5% = y; where x = rent for previous one year period and y = rent for subsequent one year period); at the end of the second one year period, the rent for that period will be multiplied by one hundred and one and one-half percent and the product will become the r
Source: Item 23 — RECEIPTS (FDD pages 76–372)
What This Means (2025 FDD)
Based on the 2025 Christian Brothers Automotive Franchise Disclosure Document, the document does not explicitly state what a tenant is entitled to if they are occupying the premises and not in default of the lease. However, the FDD does provide information regarding the tenant's responsibilities, such as taking possession of the premises within five days of receiving notice of substantial completion and paying rent, which ranges from $22,000 to $36,000 per month for the first year, with annual increases of 1.5%.
Additionally, the FDD outlines conditions under which the franchise agreement can be terminated, including instances of default. It also mentions a dispute resolution agreement for conflicts arising from the lease or franchise agreement. The franchisee is expected to maintain insurance coverage and provide copies of the policies to the franchisor.
To fully understand the rights and entitlements of a tenant in good standing, a prospective Christian Brothers Automotive franchisee should consult the specific lease agreement and seek clarification from the franchisor regarding tenant rights, lease renewal options, and any benefits or protections afforded to tenants who are compliant with the lease terms.