When is the loan administration fee payable to CBAC for a Christian Brothers Automotive franchise?
Christian_Brothers_Automotive Franchise · 2025 FDDAnswer from 2025 FDD Document
If you elect to utilize CBAC's in-house loan administration services, a $2,500 loan administration fee will be payable to CBAC upon the closing and funding of your startup loan, which generally occurs upon receiving your Certificate of Occupancy. If you elect to obtain and facilitate your own startup financing, you will be charged a $4,000 loan administration fee due to the increased administrative burden. If you elect to utilize CBAC's in-house loan administration services in order to refinance your loan, you will be subject to the $2,500 fee payable to CBAC at the close of that transaction.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 33–36)
What This Means (2025 FDD)
According to the 2025 Christian Brothers Automotive Franchise Disclosure Document, the timing of the loan administration fee payment depends on whether the franchisee uses Christian Brothers Automotive's in-house loan administration services or secures their own financing.
If a franchisee elects to use Christian Brothers Automotive's in-house loan administration services, a $2,500 loan administration fee is payable to CBAC upon the closing and funding of the startup loan. This typically occurs when the franchisee receives their Certificate of Occupancy. Alternatively, if a franchisee chooses to obtain their own startup financing, they will be charged a $4,000 loan administration fee due to the increased administrative burden on Christian Brothers Automotive.
Furthermore, if a franchisee utilizes Christian Brothers Automotive's in-house loan administration services to refinance their loan, they will be subject to the $2,500 fee payable to CBAC at the close of that transaction. Therefore, franchisees should consider these fees and their timing when making decisions about financing their Christian Brothers Automotive franchise.