 |
||||
Frequently Asked QuestionsHow do I apply to the Registry?Who Reviews my franchise agreement? How long does the review process take? How do lenders know that my system is on the Registry? What is the difference between a "non-material" and "material" change? Does one initial registration cover multiple programs? Does the SBA finance development agreements? How do I apply to the Registry?Applying to the Franchise Registry requires three steps:
Who reviews my franchise agreement?FRANdata conducts the initial review of the franchise agreement, and submits a recommendation to the SBA. The SBA makes all final eligibility determinations. Back to TopHow long does the review process take?The process will be completed at least 10 weeks from the time FRANdata receives the following: 1-Completed Worksheet, 2-Franchise Agreement in electronic format, 3-Application Fee. Back to TopHow do lenders know that my system is on The Registry?When a franchisee applies for SBA financing, you will need to provide the franchisee with a certification form. If the version of the agreement that the franchisee will sign is the same as or non-materially different from the version approved by the Franchise Registry, you will provide a "Certificate of No Change or Non-Material Change," accessible at: www.franchiseregistry.com/Forms/CertificationofNoChange.htm. The lender may then rely upon that certificate and your listing on the Franchise Registry as the SBA's determination that your franchise system is eligible. Approved lenders also have access to your franchise agreement through the Franchise Registry Web site. Back to TopWhat is the difference between a "non-material" and "material" change?A non-material change is one that does not concern the SBA eligibility guidelines. (The guidelines may be accessed by visiting www.franchiseregistry.com/worksheet, and clicking on the link where indicated.) Conversely, a material change is one that concerns any of the identified in the eligibility guidelines - control, leasing, renewal, transfer, default & termination. Back to TopDoes one initial registration cover multiple programs?No. The franchise system must submit a separate registration for each program. For example, a franchisor must register a cart/kiosk program, a co-branding program, and its standard program separately. Back to TopDoes the SBA finance development agreements?The SBA views development agreements for franchises as analogous to real estate developers which, according to 13 C.F.R. section 120.110, are ineligible for SBA financing. Development agreements are not eligible for SBA financing, and accordingly cannot be listed on the Franchise Registry. It does not matter what the franchisor calls the document; if the SBA deems it to be a development agreement, it cannot be listed. Back to Top |
||||
 |