Franchise Findings

SBA attorneys have assembled a listing of Issues of Eligibility they have identified in various franchise/license/dealer/jobber or similar agreements (Agreements), which SBA calls Franchise Findings.  This list contains the names of those franchises and systems that have requirements in their Agreements that could cause the business to be ineligible for SBA Financial Assistance.  This list is made available for use by Lenders/CDCs in evaluating the eligibility of a small business that operates under an Agreement. This list is only a guide and is not a substitute for a full review of the Agreement.

The issues listed on the Franchise Findings list reflect SBA's rules, regulations and SOPs in effect at the time of the attorney's review. Agreements are constantly updated and changed; therefore, the items on the list may no longer be an issue in the current version of an Agreement. There may, however, be other issues that have not been identified on the list. If you have a specific issue which you need to discuss please contact local SBA District Counsel.

As a reminder, if a Lender/CDC is processing an application under its delegated authority, it is responsible for reviewing the Agreement and making the eligibility determination in accordance with SBA's policies and procedures in effect when the application was filed unless 1) the Agreement is listed on the Franchise Registry and 2) the Lender/CDC has obtained a Certification of Non-Material Change from the Franchisor which states that the Agreement under consideration is the same as the one approved on the Registry.

SBA expects to update the Franchise Findings list monthly.