What is the Christian Brothers Automotive tenant's use of the premises conditioned upon?
Christian_Brothers_Automotive Franchise · 2025 FDDAnswer from 2025 FDD Document
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______ by and between Tenant and Christian Brothers Automotive Corporation (together with any amendments, modifications, or supplements thereto, the "Franchise Agreement").
- Possession. 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. For example, at the end of the first year of the Lease, the rent paid for the initial one year period will be multiplied by one hundred and one and one-half percent and the product will become the rent for the next one year period (x multiplied by 101.5% = y; where x = rent for previous one year period and y = rent for subsequent one year period); at the end of the second one year period, the rent for that period will be multiplied by one hundred and one and one-half percent and the product will become the r
Source: Item 23 — RECEIPTS (FDD pages 76–372)
What This Means (2025 FDD)
The 2025 Franchise Disclosure Document does not explicitly state what conditions the Christian Brothers Automotive tenant's use of the premises is subject to. However, it does mention a lease agreement between the tenant and Christian Brothers Automotive Corporation.
The FDD excerpt indicates that the tenant will take possession of the premises within five days of receiving notice that the premises are substantially completed, as defined in the Master Lease. Additionally, the tenant is obligated to pay rent, with the amount varying from $22,000 to $36,000 per month for the first year, subject to adjustments as outlined in the Lease Term Letter. The rent increases by one and one-half percent on each one-year anniversary of the lease.
To fully understand the conditions governing the tenant's use of the premises, a prospective Christian Brothers Automotive franchisee should review the full lease agreement and discuss specific details with the franchisor, including permitted uses, restrictions, maintenance responsibilities, and any other relevant terms outlined in the lease.