What FRANdata Thinks

The overall message we received was that franchise lenders have robust volume and are looking for more deals.  Below are four key questions and answers from the lender’s conference with over 450 of the most active lenders will help you understand how lenders are thinking. Q:  How lose are SBA lender’s credit boxes? A:  Deferments […]

Until May 11, 2023, the US Small Business Administration (SBA) facilitated franchise financing by authenticating brand eligibility through its directory. However, the SBA directory has been discontinued, and lenders now bear the burden of determining eligibility. This shift has led to banks reassessing their underwriting processes, causing delays and increased denials due to uncertainty. Lenders […]

What does 2024 hold for franchisor M&A? During a time of economic uncertainty, it’s especially hard to make forecasts. However, there are some emerging trends that suggest that there will be some deal activity in 2024. Data from Boston Consulting Group shows that through the end of August 2023, companies had announced approximately 21,500 deals […]

Representations and Warranties Insurance (“RWI”) has become a mainstream tool that is used in most M&A transactions, including transactions in which franchisors change hands. This type of insurance is not new, but as deals get more competitive it has emerged as a regular way to shift risk from the seller to an insurer, and thereby […]

  SBA lenders have been faced with unprecedented changes in the way they finance SBA loans.  These changes are unwelcome and, for the most part are causing significant uncertainty for both lenders and borrowers. The key takeaway for you as franchisors are to do whatever you can to help provide lenders certainty and speed because they have less […]

 

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