Under what condition is a Christian Brothers Automotive tenant NOT entitled to exercise a renewal option?
Christian_Brothers_Automotive Franchise · 2025 FDDAnswer from 2025 FDD Document
Lessor grants Tenant three (3) consecutive options to extend the term of the Lease for five (5) year periods (each, a "Renewal Term"), provided that if the Lessor is unable to successfully obtain a necessary renewal of the Master Lease from the Owner, Tenant shall not be entitled to exercise any option where the renewal period will exceed the term of the Master Lease.
Source: Item 23 — RECEIPTS (FDD pages 76–372)
What This Means (2025 FDD)
According to Christian Brothers Automotive's 2025 Franchise Disclosure Document, a tenant may not be entitled to exercise a renewal option under specific circumstances related to the master lease.
Specifically, if the lessor (the party granting the lease to the Christian Brothers Automotive franchisee) is unable to successfully obtain a necessary renewal of their own master lease from the property owner, the Christian Brothers Automotive tenant will not be able to exercise any renewal option that would extend beyond the term of the master lease.
This condition is important for prospective franchisees to understand, as it directly impacts their ability to extend their lease and continue operating their Christian Brothers Automotive business at the same location beyond the initial term. Franchisees should inquire about the terms of the master lease and the likelihood of its renewal to assess the long-term security of their location.