What is the Christian Brothers Automotive tenant's entitlement to an abatement of rent for Christian Brothers Automotive?
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.
Source: Item 23 — RECEIPTS (FDD pages 76–372)
What This Means (2025 FDD)
Based on the 2025 Franchise Disclosure Document, the Christian Brothers Automotive lease agreement stipulates that the tenant's monthly rent will range from $22,000 to $36,000 for the initial year. This amount is subject to the provisions outlined in subsection (e) of the lease, which may address specific conditions affecting rent payments. After the first year, the rent will increase by 1.5% annually.
The lease specifies that rent payments are due in advance, without demand, on the first day of each month, commencing on the Commencement Date. Payments should be made at the lessor's office located at 17725 Katy Freeway, Houston, Texas 77094. Similar to the initial rent amount, these payments are also subject to the provisions of subsection (e).
However, the excerpt does not explicitly detail the conditions under which a tenant would be entitled to an abatement of rent. For a comprehensive understanding of any rent abatement clauses, a prospective Christian Brothers Automotive franchisee should review the full lease agreement, paying close attention to subsection (e), and consult with the franchisor about potential scenarios that could lead to rent abatement.