What is the Christian Brothers Automotive tenant's obligation regarding the execution of agreements for automatic payments?
Christian_Brothers_Automotive Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee agrees to perform any and all acts and to execute and deliver any and all documents that may be reasonably necessary to carry out this provision of this Agreement.
Franchise Agreement (Ver 04-14-2025)
Franchisee: __________________
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 specify any obligation for the tenant to execute agreements for automatic payments. The FDD excerpts discuss various obligations of the franchisee, including those related to sublease agreements, data security, and adherence to system standards, but it does not explicitly mention automatic payment agreements. The franchisee is obligated to deliver a commercial sublease agreement to the Franchisor and to perform all acts and execute documents necessary to carry out the agreement.
While the FDD outlines the franchisee's responsibilities regarding financial matters such as rent payments and transfer fees, it does not detail any requirements for automatic payments. The franchisee is responsible for paying rent in advance without demand at the Lessor's specified office, but the method of payment (e.g., check, electronic transfer, automatic payment) is not mandated in the provided excerpts. The franchisee must also pay a transfer fee of $30,000 in the event of an assignment of the agreement or a change of control, with specific payment terms outlined.
Therefore, a prospective Christian Brothers Automotive franchisee should directly inquire with the franchisor about any expectations or requirements related to automatic payment agreements. Specifically, they should ask if automatic payments are a preferred or mandatory method for rent, royalties, or other fees, and if there are any specific agreements or forms required for setting up such payments. This will ensure they are fully informed about all financial obligations and payment procedures associated with operating a Christian Brothers Automotive franchise.