An excerpt of an article by Mary Jo Larson of the Franchise Times.
All the gnashing of teeth over the SBA Registry rule change may be for naught, since the four points the SBA has pulled out into an addendum are best practices most franchisors are already doing. Or so said a panel of franchisors and lenders that discussed the rule change on a webinar today presented by BoeFly, a national online marketplace that connects small business borrowers with banks and lenders…
As Franchise Times covered in an earlier blog in November, the SBA issued a rule change that will no longer require franchisors to submit their franchise agreement for SBA review, or require them to be listed on the Franchise Registry.
Under the new rule, both the franchisee and franchisor sign a two-page addendum to the franchise agreement that covers four provisions: change of ownership; forced sale of assets; covenants; and employment.