FRUNS (FRANdata Unique Numbering System) is a coding system that uniquely identifies every brand in the U.S.A. that is associated with franchising.
Franchise Brand Tracking The FRUNS is the backbone of the FRANdata’s databases and is the only system of its kind to organize and understand franchised brands accurately. Why is this important? There are roughly 150 to over 250 new franchise brands created every year, we add new brands to our database at the rate of 1-2 per day. Over the past couple of years alone there have been 6000+ cases of franchisors changing their Inc name or brand name – our unique numbering system enables us and our clients to track every brand as it evolves through brand name changes linking the new name to the previous name, something that was very hard to track in the past. The FRUNS number is similar in concept to the DUNS numbering system provided by Dun & Bradstreet, meant to uniquely identify incorporated businesses. A FRUNS number replaces previous coding references to brands used by SBA lenders and is necessary for all SBA loans.
Verifying that the Franchise is Active In order to issue a FRUNS number for a brand, FRANdata has created a verification system by which we confirm that a company is an active business and meets the US Small Business Administration's definition of a franchise. For business format franchise brands, verification requires submission and review of a Franchise Disclosure Document. For other types of affiliated business systems, such as distributorships and licensees, verification depends on submission of appropriate documentation.
providing FRANdata with as much information about the brand as you have.
FRUNS and the SBA
This initiative grew out of the desire to improve the SBA Loan Loss Data reported on every franchise whose franchisees get SBA-guaranteed loans. Though the SBA themselves recommend that lenders do NOT use their data for risk assessment, and even though far more accurate and complete tools exist to assist the lender in underwriting franchise loans, such as the Bank Credit Report, still too many lenders use this data as part of their credit policy.
One of the most basic reasons for the inaccurate data is that there was no "master list" of franchise brands that would allow lenders to properly code loans. The SBA asked FRANdata, as the only research company whose mission is to study all franchise companies, to produce just such a list.
What if the brand you are lending to is not listed?
Complete this form, providing FRANdata with as much information about the brand as you have. FRANdata will immediately research the company and, if we can verify that it is a franchise, will issue you a FRUNS number. If you would like more information about the information provided on the Franchise Registry, especially about SBA eligibility of franchises, go here.
Getting a FRUNS number and maintaining your franchise listing is free and easy to do. If your franchise is not already listed, simply complete this form and FRANdata will review your information and add you to the list. You will be given a login to the site and will be able to update your info, add your logo, and marketing information. If you are listed but do not know your login, call us at 800.485.9570 or email email@example.com and will provide you with your username and password.