Driving by your local Arby’s, you can’t tell who the owner is, how many locations they own, or how to reach them for their business. Forty franchisees own more than 70% of Arby’s franchised locations (refer to the pie chart). That’s right – forty franchisees own 1500 Arby’s restaurants. If you could secure business with […]
The Small Business Administration (SBA) has recently announced significant changes to how it deals with franchise lending, signaling its departure from the messiness of franchise oversight and eligibility. These changes aim to simplify and expand the program, aligning it with the success of the Paycheck Protection Program (PPP) that provided loans to small businesses during […]
Franchise Disclosure Documents (FDD) (previously called UFOCs) are crucial legal documents that franchisors in the United States must provide to prospective franchisees as required by the Federal Trade Commission (FTC). The FDD contains vital information about the franchisor, the franchise system, and the franchise agreement. As such, it serves several essential purposes, including due diligence, […]
Well… we saw this coming. What we alerted you about in our last communication is about to happen. SBA will no longer be in the business of determining franchise affiliation. The deadline for the comment period is December 27th, 2022. Read the proposed rule here – https://www.federalregister.gov/documents/2022/10/26/2022-23167/affiliation-and-lending-criteria-for-the-sba-business-loan-programs “SBA proposes to remove paragraph (f)(5), affiliation based on franchise and […]
We are deep enough into the pandemic to more clearly see consumer patterns. The initial brunt of inflation has been absorbed and its implications are better understood. Labor shortages and supply chain issues coursing through the economy are revealing their impact. We’re far enough into 2022 to start seeing a picture of how franchise development […]