Does the Christian Brothers Automotive tenant need to comply with all terms and conditions of the Master Lease?
Christian_Brothers_Automotive Franchise · 2025 FDDAnswer from 2025 FDD Document
on | | | Property: | C-2 |
______ by and between Tenant and Christian Brothers Automotive Corporation (together with any amendments, modifications, or supplements thereto, the "Franchise Agreement").
- Possession. 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 rent for 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
Source: Item 23 — RECEIPTS (FDD pages 76–372)
What This Means (2025 FDD)
Based on the 2025 Franchise Disclosure Document, the Christian Brothers Automotive franchisee (referred to as "Tenant" in this context) is required to take possession of the premises within five days of receiving notice that the premises are substantially completed, as defined in the Master Lease. The franchisee is also obligated to pay rent to the lessor, with the specific amounts and payment terms detailed in the lease agreement.
The monthly rent for a Christian Brothers Automotive location ranges from $22,000 to $36,000 for the first year, with the exact amount to be specified in a Lease Term Letter. The rent increases by 1.5% annually. Rent is payable in advance, without demand, to the lessor's offices in Houston, Texas, on or before the first day of each month, without a grace period.
This arrangement means a prospective Christian Brothers Automotive franchisee needs to budget for these rent payments and understand the terms of the Master Lease to ensure compliance. The franchisee should carefully review the Lease Term Letter to confirm the exact monthly rent and be prepared for the annual rent increases. Understanding and adhering to these lease terms is crucial for maintaining a good relationship with the lessor and avoiding any potential breaches of the lease agreement.