What is the Christian Brothers Automotive tenant's obligation regarding the delivery of instructions for automatic payments?
Christian_Brothers_Automotive Franchise · 2025 FDDAnswer from 2025 FDD Document
If requested by Lessor, Tenant agrees to execute and deliver to Lessor the authorizations, agreements and other documents and instructions necessary or appropriate to authorize automatic payment from Tenant's bank account of the rent due under this Lease each month.
If the amount of the rent payment changes at any time during the term of this Lease or renewals, Lessor agrees to notify Tenant of the change and the amount of the new payment, and Tenant agrees to execute and deliver to Lessor any and all authorizations and agreements necessary to adjust the amount of such automatic payment, if needed.
Source: Item 23 — RECEIPTS (FDD pages 76–372)
What This Means (2025 FDD)
According to the 2025 Christian Brothers Automotive Franchise Disclosure Document, if the lessor requests it, the tenant (franchisee) must provide the necessary authorizations, agreements, and instructions to allow for automatic rent payments from their bank account.
Furthermore, if the rent amount changes during the lease term or any renewals, the lessor will notify the tenant of the new payment amount. The tenant is then obligated to provide any additional authorizations or agreements needed to adjust the automatic payment accordingly.
This clause ensures that Christian Brothers Automotive can enforce a consistent and reliable payment method for rent, reducing the risk of late or missed payments. It also places the onus on the franchisee to actively manage and update their payment authorizations whenever changes occur, ensuring compliance with the lease agreement.