Category Archives: General

The New SBA Addendum

Effective January 1, 2017, any franchisor that wants to offer SBA guaranteed financing for its franchisees will use a single, two-page form addendum.   In a notice issued just before Thanksgiving, the SBA announced that it will no longer review franchise agreements to determine whether affiliation exists between the franchisor and franchisee in any specific franchise system.  Previously negotiated SBA addenda will no longer be accepted. SBA loans are only available to independent small businesses as defined in the SBA regulations.  Some franchisors impose a level of control in the franchise agreements that the SBA considers to create “affiliation” between the franchisor and …

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Welcome to Franchise Alchemy

Welcome to Franchise Alchemy, a blog that magically transforms franchise business and law news into golden concepts.  Of course, we make no promises about the gold or the magic.  But we’ll do our best. We are lawyers at the national law firm of LeClairRyan.  We hope to make real contributions to the conversation with franchisors, franchisees and franchise consultants, and with legislators, judges, franchise law administrators and individuals and businesses considering franchising.  In sum, our audience is comprised of people in the franchise business and those who deal with franchise companies or simply have an interest in the subject. Why …

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