Franchiseregistry.com is the site for the Small Business Administration’s [SBA] national online listing of franchise systems [Franchise Registry]. The site is maintained by Frandata. Franchise systems listed on the Franchise Registry receive expedited loan process when franchisees and prospective franchisees are applying for financial assistance from the U.S. Small Business Administration SBA.
Click here to learn about comment period for SBA lending process or visit: https://gettinslaw.com/franchising/2015/01/05/what-do-you-think-about-the-sba-lending-process/
Here are benefits of being listed as SBA eligible on the Franchise Registry [per Frandata’s website]:
Benefits for Franchisors:
• Expedited loan processing. Eliminate weeks of processing time for new franchisees during purchase and existing franchisees looking to upgrade or remodel their existing location with an SBA loan. Help to ensure that loans will not be held up by a local SBA office and royalty streams will not be delayed.
• Minimize legal reviews and expenses. Have your franchise documents reviewed once, instead of being subjected to negotiations and different interpretations among local SBA offices.
• Service to franchisees. Demonstrate up-front to franchisees your commitment to a successful relationship by helping them to secure financing.
• SBA stamp of approval. Provides a feeling of security to franchisees because SBA has determined that there are no unacceptable franchisor control provisions in the franchise agreement. Franchisors can announce and market their listing on the Franchise Registry to prospective franchisees.
• Improves relationships with SBA lenders. Being listed decreases risks for PLP lenders and eases the approval process for local and regional lenders who are increasingly participating in SBA financing. This is particularly helpful for franchisees who prefer to continue their relationship with their own lender. It also raises awareness of your brand in the lending community.
Benefits for Franchisees & Potential Franchisees:
• Franchisors who are part of the Franchise Registry are doing their best to make your financing as easy and quick as possible. Need we say more?
Now inversely, not being on the franchise registry does not mean that SBA funding is not available. It simply means the loan process is going to be protracted [by 4-8 weeks] while the franchise disclosures and agreements are reviewed.
Click here to read What are the SBA’s Franchise Bug-a-Boos? or visit: https://gettinslaw.com/franchising/2015/01/21/what-are-the-sbas-franchise-bug-a-boos/
And, you can get a basic listing on Franchise Registry, without going the through the SBA Eligibility Review. As part of the Franchise Registry, FranData offers other services. They offer BCR service to assist franchisors in getting a Bank Credit Report. There is also a Find-A-Lender matchmaking service, which matches franchise and lenders.
A basic listing on the Franchise Registry is free, but the SBA eligibility review and other services cost money.
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