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12.16.20 | Sba Franchise Agreement Addendum

Yes, each year in order not to confirm the changes to a previously approved negotiated endorsement All applications for franchise approval and the list must be sent to For all franchised loans approved for the remainder of the calendar year, lenders must continue to follow the procedures described in THE SOP 50 10 5 (I). SBA indicated that technical corrections to SOP 50 10 5 (J) are being developed. We will inform you of any other changes or changes related to the new franchise review process. For more information, please contact Jennifer at 267-470-1206 or Before the SBA introduced the SBA franchise directory, a company called FRANdata kept the franchise register, the precursor to the SBA franchise directory. FRANdata maintains its franchise register. Although registration in the FRANdata franchise register is not necessary for a franchised brand to benefit from SBA financing, FRANdata provides support to potential lenders and more information than a listing in the SBA franchise directory. As a private company, FRANdata collects a fee for its services to franchisors. Form SBA 2462, Addendum to Franchise Agreement is a form filled out by a franchisee and franchisor when applying for funding supported by the Small Business Administration (SBA). The information provided in the form is used to ensure that no conditions of franchise agreements are applied to the franchisee during the term of the loan guaranteed by the SBA. If a franchisor is willing to use the standard SBA addendum, it may be useful for the franchisor to change its standard terms to include the provisions of the SBA additive.

On the one hand, some franchisees may be dissatisfied with the fact that only franchisees applying for SBA-guaranteed loans enjoy the benefits of the SBA addendum. Other franchisees will certainly experience franchise terms offered to some, but not to all franchisees, and this difference could create discord. For applicants from small businesses operating under more than one brand, Lenders must certify that all trademarks essential to the applicant`s business are on the list. Lenders must obtain copies of all franchised documents, form SBA 2462 or negotiated SBA addendum and any other agreement between the franchisor and the applicant prior to the first payment of the loan. If the applicant is a small business franchisor, the SBA verifies the franchise documents and determines if there is an affiliation. The SBA will then issue a global addendum on a case-by-case basis. Recently, the SBA revised its approach to franchise financing to tighten the franchise registry. The registry is an SBA program that lists the names of franchisees whose franchisees can benefit from an optimized verification process.

Prior to the new SBA program, effective January 2017, the SBA had created an SBA registry in which the Agency reviewed a franchisor`s franchise agreement and disclosure documents to determine whether its franchisees had sufficient independence as business owners to qualify for a loan guaranteed by SBA. The SBA addendum is a form that requires filling up spaces.