Community Loan Center FDD – Franchise Information, Costs and Fees
Type of Business
COMMUNITY LOAN CENTER CORPORATION, a Texas corporation (“CLC” or “Community Loan Center”), is a part of the Rio Grande Valley Multibank Corporation (“RGVMB”). RGVMB was founded in 1995 by six investing stockholder banks and its current operations cover the Rio Grande Valley. The Community Loan Center Corporation was established by RGVMB to administer its “Affordable Small Dollar Loan Program” to provide a community service in the form of an alternative to payday loans and other more costly loan programs. A “Community Loan Center” franchise gives you the right to offer small dollar loans (a cash advance of no more than $1000) in a designated geographic territory
Corporate Information
COMMUNITY LOAN CENTER was incorporated as a Texas corporation on August 26, 2010 and started operating small dollar loan businesses in 2011. Their principal business address is 642 E. Washington Street, Brownsville, TX 78521.
Investment
The total investment necessary to begin operation of a “Community Loan Center” franchise is approximately $265,000- $500,000. This includes a Franchise Fee of $10,000 that must be paid as set forth in the Franchise Agreement to the Subfranchisor and approximately $350,000 for the loan pool, at least $50,000 of which shall be maintained in a Community Loan Center escrow account with Frost Bank, a member bank of RGVMB. The franchised business may be conducted on the internet and by arrangement with participating employers; no office facility is required and accordingly no estimated expenses for office facilities are provided for herein, although franchisees who currently conduct any related financing or community investment business through existing office facilities may make use of such office facilities to the extent they elect.
