What is the Christian Brothers Automotive tenant's obligation regarding the delivery of other documents for automatic payments?
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 franchisee's obligations regarding the delivery of documents for automatic payments are not explicitly detailed in the provided excerpts. However, the FDD does mention the payment of rent under the Commercial Sub-Lease Agreement.
Specifically, the franchisee, as a tenant, is obligated to pay rent to the lessor, with the monthly rent falling in the range of $22,000 to $36,000 for the first year. The exact amount is determined by the Lessor and communicated to the Tenant in the Lease Term Letter. Rent payments are due in advance, without demand, on the first day of each month at the lessor's office located at 17725 Katy Freeway, Houston, Texas 77094. The rent increases by 1.5% on each one-year anniversary of the lease.
While the excerpts outline the amount, timing, and location for rent payments, they do not specify the documentation or procedures required for setting up automatic payments. A prospective franchisee should seek clarification from Christian Brothers Automotive regarding the specific requirements for automatic payment setup, including necessary forms, bank details, and any other relevant documentation.