How a Franchisor Should Determine Which Certification to Give Their Franchisee

If there have been no changes to the franchise agreement and all other agreements the franchisee must sign ("Franchise Documents") since the date of registration or last update or re-certification, then the franchisor's counsel should check the appropriate box on the "Certification of No Change or Non-Material Change" and provide a copy of the certification to the franchisee.

If there has been a change to an agreement that does not affect the eligibility guidelines (and therefore does not require recertification), an update is required. The franchisor must submit the following to FRANdata, SBA's Registry representative, and provide a copy of the certification to the franchisee.

• A new worksheet if any contract references have changed. For example, a new worksheet must be submitted if the contract provisions have been renumbered.
• Amended documents, electronically or on disk
• Redlined versions of documents, electronically, on disk or by hard copy
• A Certification of No Change or Non-Material Change and a $300 fee

If an eligible franchise program makes changes to their franchise agreement or related documents that affect the eligibility guidelines and require a change to their worksheet responses, they need to apply for a re-certification. The franchisor must submit the following to FRANdata, SBA's Registry representative, and provide a copy of the certification to the franchisee.

• A new worksheet
• Amended documents, electronically or on disk
• Redlined versions of documents, electronically, on disk or by hard copy
• A Certification of Material Change and a $300 fee

When a franchise program becomes eligible, these forms are provided to the person who submitted the worksheet to the Franchise Registry. The forms can also be accessed by clicking on the appropriate link below and then using the print feature of your internet browser.