When is the startup loan for a Christian Brothers Automotive franchise typically closed?
Christian_Brothers_Automotive Franchise · 2025 FDDAnswer from 2025 FDD Document
The second installment is in the amount of $50,000 and is due 30 days
prior to receiving your Certificate of Occupancy, which is generally assumed to be approximately six weeks prior to store opening. If you are allowed to finance the second installment, depending on your personal circumstances and credit worthiness, it will be paid to CBAC upon the closing of your startup loan, which is typically closed 30 days prior to receiving your Certificate of Occupancy as this coincides with initial working capital needs. $13,500 of the Down Payment will be fully earned when paid and non-refundable in consideration of administrative and other expenses CBAC incurs and for lost or deferred opportunities to enter into the Franchise Agreement with others.
Within 30 days of you and CBAC's execution of the Letter Agreement, and before you sign the Franchise Agreement, CBAC will provide you with a Non-Use, Non-Disclosure and Non-Competition Agreement, a copy of which is attached as Exhibit F, for execution.
Source: Item 5 — INITIAL FEES (FDD pages 14–17)
What This Means (2025 FDD)
According to the 2025 Christian Brothers Automotive Franchise Disclosure Document, if a franchisee is allowed to finance the second installment of the franchise fee, the startup loan typically closes 30 days prior to receiving the Certificate of Occupancy. This timing coincides with the franchisee's initial working capital needs. The second installment of the franchise fee is $50,000 and is due 30 days prior to receiving the Certificate of Occupancy, which is generally assumed to be approximately six weeks prior to store opening.
Christian Brothers Automotive also offers in-house loan administration services. If a franchisee elects to use these services, a $2,500 loan administration fee is payable to Christian Brothers Automotive upon the closing and funding of the startup loan, which generally occurs upon receiving the Certificate of Occupancy. If the franchisee chooses to obtain their own startup financing, they will be charged a $4,000 loan administration fee due to the increased administrative burden.
It's important for prospective franchisees to understand the timing of these fees and loan closures, as they directly impact the franchisee's initial investment and working capital. Franchisees should discuss financing options and the Certificate of Occupancy timeline with Christian Brothers Automotive to ensure they are prepared for these financial obligations.