What is the Christian Brothers Automotive tenant's obligation regarding the form of rent payments?
Christian_Brothers_Automotive Franchise · 2025 FDDAnswer from 2025 FDD Document
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Lessor may require that all sums due under this Lease be paid in cash, money order, cashier's check or by automatic payment from Tenant's account.
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, the tenant's obligation regarding the form of rent payments is that the lessor may require all sums due under the lease to be paid in cash, money order, cashier's check, or by automatic payment from the tenant's account. If requested by the lessor, the tenant agrees to execute and deliver the authorizations, agreements, and other documents necessary to authorize automatic payment from the tenant's bank account of the rent due under the lease each month.
If the amount of the rent payment changes at any time during the term of the lease or renewals, the lessor agrees to notify the tenant of the change and the amount of the new payment. The tenant agrees to execute and deliver to the lessor any and all authorizations and agreements necessary to adjust the amount of such automatic payment, if needed.
This means that Christian Brothers Automotive has the right to dictate the method of rent payment, which could include more secure and easily traceable methods like cashier's checks or automatic payments. This protects Christian Brothers Automotive from bounced checks and ensures timely rent collection. For a prospective franchisee, this means being prepared to adapt to the franchisor's preferred payment methods and providing the necessary banking information if automatic payments are required.