Some Franchises Are Not Qualified for SBA Guaranteed Loans

SBA

By William Bruce

The following information and long list of franchises that are are ineligible for SBA financing are taken directly from the Small Business Administration website at http://www.sba.gov/content/franchise-findings.  Note that franchise transfer issues are the most commonly cited problem in disqualifying franchises for SBA financing.

(For franchises that are qualified for SBA-guaranteed loans ranked best to worst by loan defaults, please see our article here.)

Quoting the SBA on those franchises that are ineligible for loans:

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.

Agreement Name Type of Agreement ISSUES
10 til 2 Franchising Franchise Agreement 1. Transfer
1-800 Home Services Franchise Agreement 1. Transfer 2. Appraiser Issue
1-800 Plumber Franchise Agreement 1. Transfer; 2 Appraiser Issue;3. Franchisor determines permenant disability
7-Eleven Franchise Agreement 1. Transfer   2. Excessive Fees  3. Require receipts to be deposited in Franchisor Account.  4 Franchisor owns assets of business. 5. Franchisor provides payroll services for franchisee and employess. 6. Appraiser Issue
Aaron’s Rent Franchise Agreement 1. Transfe 2. Possible passive business
Ace Hardware Brand Agreement 1. Transfer
ADECCO Franchise Agreement 1. Franchisor controls hiring of franchisee’s employees. 2. Franchisor provides payroll services franchisee’s employees
Affiliated Foods Franchise Agreement 1. Transfer
AKP International, Inc. Franchise Agreement 1. Transfer
Al & Ed’s Autosound Franchise Agreement 1. Step In; 2. Apprasial; 3. Right of First Refusal on a Partial Transfer
Alamo Drafthouse Cinema Franchise Agreement 1. Franchisor determines permenant disability
Alfy’s (Olsen Franchise Group) Franchise Agreement 1. Transfer
All American Finance Franchise Agreement 1. Franchisor controls the receipts and billing
Allen Oil Co Dealer Agreement (Gas) 1, Transfer
Allstate Agent Agreement 1. Transfer
AmCheck Franchise Agreement 1. Step In Issue ;2. Franchisee remains liable after transfer.
American Express Franchise Agreement 1. Transfer; 2. Franchisor contorls the hiring of franchisee’s employees in some cases
American Family Insurance Agent Agreement 1. Franchisor controls hiring of franchisee’s employees. 2. Transfer
American Honda Dealer Agreement 1.Transfer
Ameriprise Financial Franchise Agreement 1. Transfer
Anago franchising Franchise Agreement 1. Transfer
Anytime Fitness, Inc. Franchise Agreement Franchisor controls the receipts and billing services for the franchisee
Apple Spice Junction Franchise Agreement 1. Transfer. 2. Appraiser Issue
ARCO/AM PM Dealer Agreement (Gas) 1. Transfer; 2. Step In Rights; 3. In Real Estate Transactions, ARCO records a Deed Restriction which requires that the property only be used for the Sale of ARCO Branded Gasoline –
Arena Sport License Agreement 1. Transfer
Arizona Fuel Distributors Dealer Agreement (Gas) 1. Transfer
Arizona Pizza Company Franchise Agreement 1. Appraiser Issue
Ashland Petroleum LLC Dealer Agreement (Gas) 1. Purchase Option for real estate
Ashley Homestore Franchise Agreement 1. Transfer
Assist-2-Sell, Inc. Franchise Agreement 1. Transfer
Associated Wholesale License Agreement 1. Transfer
AT&T Exclusive Dealer Agreement Dealer Agreement 1. Transfer
Atlanta Bread Company Franchise Agreement 1. Appraiser Issue
Atlas Oil Co Dealer Agreement (Gas) 1. Transfer
Atlas Van Lines Dealer Agreement 1. Transfer
Auto Apprasial Network Franchise Agreement 1. Transfer; 2 Step In; 3. Franchisor determines permanent disability; 4. Right of First Refusal on a partial transfer
Auto Check Franchise Agreement 1. Transfer
Auto Driveaway Co. Agency Agreement Franchise Agreement 1. Required receipts to be deposited into franchisor’s account
Auto Star Licensing License Agreement 1. Transfer
Avon License Agreement 1. Multi Level Sales Arrangement (pyramid sale distribution plan)
B&G Milkway Franchise Agreement 1. Transfer
Baby’s Room USA Franchise Agreement 1. Step In Issue
Backyard Burgers Franchise Agreement 1. Transfer
Bally’s Fitness Franchise Agreement 1. Franchisr controls the receipts and billing services for the franchisee
Bar Louie Development Franchise Agreement 1. Transfer
Barnie’s Coffee & Tea Company, Inc. Franchise Agreement 1. Appraiser Issue
Barrick Ent.(Mobil) Dealer Agreement (Gas) 1. Transfer
Beadniks Franchise Agreement 1. Transfer. 2. Franchisee remains liable after transfer
Bear Creak Coffee Franchise Agreement 1. Transfer
Beard Papa’s Franchise Agreement 1. Transfer 2: Apprasial
Bee Hive Homes Franchise Agreement 1. Step In Issue. 2. Purchase option for Real Estate
Bellacino’s Franchise Agreement 1. Step In Issue
Bellair Express Franchise Agreement 1. Transfer
Belzona Inc. Jobber Agreement 1. Transfer
Best Value Inn Franchise Agreement 1. Transfer
Biggy Coffee Franchise Agreement 1. Indemnification Issues
Bikram’s Yoga College of India Franchise Agreement 1. Transfer
Billy McHale’s Franchise Agreement 1. Transfer
Black Bear Diner Franchise Agreement 1. Transfer
Blinds Mart Franchise Agreement 1. Transfer
BMW of North America Motorcycle Dealer Agreement 1. Transfer
BNI Membership Agreement 1. Transfer;2 Excessive Fees;3 Possible Development Agreement Issues
Bo Concepts Franchise Agreement 1. Transfer. 2. Step In Issues
Bobby Salazars Franchise Agreement 1. Appraiser Issue. 2. Step In Issues
Bob’s Big Boy Franchise Agreement 1. Franchisee remains liable after transfer
Bonfare Markets Franchise Agreement 1. Franchisor handles all of Franchisees accounting including tax returns and payroll. 2. Franchisor percures and maintaines the required insurance coverage for the franchisee. 3 Apprasial
Boomer McLoud Dealer Agreement 1. Apprasial Issue
Boston Pizza Franchise Agreement 1. Transfer Issue  2. Apprasial Issue. 3. Purchase option for Real Property. 4. Step In Rights
Boyett Petroleum Dealer Agreement (Gas) 1. Transfer
BP Dealer Agreement (Gas) 1. Transfer; 2. Dealer sets net profit; 3. Brand Covenant Restrictions in some cases; 4. Dealer/Jobber in some cases ownes the equipment
BP Amco Contract Supply Agreement Dealer Agreement (Gas) 1. Transfer
Bridgestone Dealer Agreement 1. Transfer
BrightStar Healthcare Franchise Agreement 1. Step In Issues
Bruster’s Real Ice Cream Franchise Agreement 1. Transfer
Budget Host Int’l Membership Agreement 1. Transfer
Bull Market, Inc. Jobber Agreement Transfer 2: Agreement does not include language which allows reasonable transfer;
Bumper Man Franchise Agreement 1. Franchisor handles the billing services for the franchisee
Burkett Oil Dealer Agreement (Gas) 1. Transfer
Butterfly Life Franchise Agreement 1. Apprasial Issue
Caffino Franchise Agreement 1. Right of first refusal. 2. Transfer. 3. Step In Rights
California Tortilla Franchise Agreement 1. Franchisor has the ability to determine permenant disability
Cam’s Pizzeria Franchise Agreement 1. Transfer. 2. Franchisor has the ability to contorl the sale of the business
Cannon Office Imaging Retail Dealer Dealer Agreement 1. Transfer. 2 Franchisee remains liable after tranfer
Canteen Vending Services Franchise Agreement 1. Appraisal Issue
Captain D’s Restaurant Franchise Agreement 1. Transfer
Cargill Pork Distributor Agreement 1. Transfer
Carl’s Jr. Franchise Agreement 1. Transfer
Carlson Wagonlit Franchise Agreement 1. Possible Excessive Liquidated damages
Carnett’s Franchising Franchise Agreement 1. Apprasial Issue
Carribean Petroleum LP Dealer Agreement (Gas) 1. Transfer
Carrier Transicold Dealer Agreement 1. Transfer
Carthage vision Clinic Franchise Agreement 1. Transfer
Car-X Franchise Agreement 1. Apprasial Issue. 2 Purchase Option for Real Estate. 3. Step In Issue
Case Corporation Dealer Agreement 1. Transfer
Cash Plus Franchise Agreement 1. Transfer. 2. Appraiser Issue
CB Tax Franchise Agreement 1. Transfer
Cellcom Agent Agreement 1. Transfer
Cena Franchising Franchise Agreement 1. Transfer
Central Bark Doggie Daycare Franchise Agreement 1. Step In Rights
Century 21 Franchise Agreement 1. Transfer
Certified Oil Company Dealer Agreement (Gas) 1. Transfer
Charter Practices International, LLC Franchise Agreement 1. Agreement allows the franchisor to control the hiring of agent’s employees. 2.  Receipts deposited into account controlled by franchisor. 3. Transfer. 4. Franchisor controls the accounting for franchisee
Cheeburger Cheeburger Franchise Agreement 1. Appraisal Issue
Chester Fried Chicken Franchise Agreement 1. Transfer
Chevron Dealer Agreement (Gas) 1. Transfer;2 Brand Covenant;3. ROFR contains language for partial transfer; 4. Purchase Option
Chicken Dijon Franchise Agreement 1. Transfer; 2 Step In; 3 Franchisor requires a purchase option on real estate; 4. Franchisor requires payment of purchase of assets by a carry back Note; 5. UCC Issue
Chicken Express Franchise Agreement 1. Transfer. 2. Step In Issues. 3. Security Interest Issue
Chicken Kitchen Franchise Agreement 1. Transfer. 2. Appraiser Issue
Chico’s Int’l Tecate Grill Franchise Agreement 1. Transfer. 2. Secuirty Interest Issue. 3. Franchisor has an option for the purchase of Real Estate
Chuck e  Cheese Franchise Agreement 1. Transfer. 2. Appraiser Issue
Chuy’s Mesquite Broiler’s Franchise Agreement 1. Transfer
Chyten Education Center Franchise Agreement 1. Transfer; 2 Step In
Cindy’s Cinnamon Rolls Franchise Agreement 1. Transfer;2 Step IN Rights; 3 Apprasial Issues
Citgo/Clipper Petroleum Dealer Agreement (Gas) 1. Transfer; 2. Brand Covenant/Deed Restriction Issues
City Looks Salon Franchise Agreement 1. Franchisee remains liable after transfer
CKO Kickboxing Franchise Agreement 1. Transfer; 2. Step In Rights
Clarion Inn (Choice) Franchise Agreement 1. Transfer
Cleaners Depot Franchise Agreement 1. Step In Rights; 2. Franchisee continues to remain liable after transfer
Cleaning Authority Franchise Agreement 1. Transfer
Cleannet USA Franchise Agreement 1. Transfer
CleanStay USA, Inc. Franchise Agreement 1. Transfer
Cleats Restaurant License Agreement 1. Transfer
Clothes Mentor Franchise Agreement 1. Step in Issues
Club Car Distributor Agreement 1. Transfer
Club One Fitness Centers Franchise Agreement 1. Transfer 2. Franchisor has ability to  direclty control hiring and firing employees.
Colbert-Ball Tax Service Franchise Agreement 1. Transfer; 2. Step In Rights
Coldwell Banker Franchise Agreement 1. Transfer
Comet Cleaners Franchise Agreement 1. Transfer
Convenient food Mart Franchise Agreement 1. Step In Rights
Cost Cutters Franchise Agreement 1. Franchisee remains liable after transfer
Counter Custom Built Burgers Franchise Agreement 1. Purchase Option for real estate
Country Inn & Suites Franchise Agreement 1. Transfer – Reasonable Business judgment issues
Country Kitchen Franchise Agreement 1. Transfer. 2. Franchisee remains liable after transfer
Country Waffles, Inc. Franchise Agreement 1. Transfer. 2. Appraiser Issue
Coverall Services, Inc. Franchise Agreement 1. Franchisor controlls billing services for franchisee
Creating Wellness Franchise Agreement 1. Transfer
Creno’s Pizza Co. Franchise Agreement 1. Apprasial Issue
Culligan Franchise Agreement 1. Transfer
D.Vine Franchise Agreement 1. Franchisor determines permenant disability
D.W. Drum Workshop Distributor Agreement 1. Transfer
Daily Brew Franchise Agreement 1. Transfer
Dairy Queen  (Please note there are multiple Dairy Queen Agreements for different locations – some of these have  been approved on the Franchise  Registry – you need to check the specific location for your agreement) Franchise Agreement 1. Transfer 2. Franchisee remians liable after trasnfer
Dalworth Clean Franchise Agreement 1. Franchisor controls money, clients and bookings
Dash In Food Stores Franchise Agreement 1.Agreement calls for excessive franchise fees (50%). 2. Agreement calls for all receipts to be deposited into a common account servicing a number of franchise locations and controlled by franchisor. 3. Agreement allow the franchisor to pay the employees of the franchisee.4. Franchisor leasses the equipment to franchisee
Dashing Divas Franchise Agreement 1. Transfer; 2. Liquidated Damanges
Dealer Specialties Distributor Agreement 1. Step In Issues
Diedrich Coffee Franchise Agreement 1. Transfer
Del Rancho Restuarants Franchise Agreement 1. Transfer
Del Sol Franchise Agreement 1. Transfer
Del Taco Franchise Agreement 1. Apprasial Issues
Delta Powersports Inc Dealer Agreement 1. Transfer
Dennys Franchise Agreement 1. Transfer. 2. Appraiser Issue. 3. Credit Card Issue; 4. Franchisee remains liable after transfer
DHL Agent Agreement 1. Transfer
Dial Oil Co. Dealer Agreement (Gas) 1. Transfer
Dickey’s BBQ Franchise Agreement 1. Apprasial Issue. 2. Permanent Disability determined solely by franchisor
Digital Zone Franchise Agreement 1. Apprasial Issue
Discovery Point Child Developmnt Ctr Franchise Agreement 1.  Transfer. 2. Apprasial Issue
Dish Network Agent Agreement 1. Transfer  2. Franchisor controlls the biling for franchisee.
Do It Best Corporation Membership Agreement 1. Transfer
Doctor’s Express Franchise Agreement 1. Transfer
Dollar Rent a Car Franchise Agreement 1. Overbroad indemnficiation agreement
Ducati North America Dealer Agreement 1. Transfer
Duncan Oil, Co. Dealer Agreement (Gas) 1. Transfer
Dysarte Service Franchise Agreement 1. Transfer
Eastern Petroleum Dealer Agreement (Gas) 1. Transfer; 2. Possible Environmental Indemnficiation Issues
EDT Learning Franchise Agreement 1. Transfer
Eggspectation Franchise Agreement 1. Transfer; 2. Apprasial Issues
El Chico Restaurant Franchise Agreement 1. Transfer. 2. Step In Issues
El Pollo Loco Franchise Agreement 1. Apprasial Issues
Elements for Women Franchise Agreement Transfer 2: Franchisee must supply “affidavit” and “Floor Plan” as noted in the SOP as the franchise appears to cater to one gender.
Englert LeafGuard Dealer Agreement 1. Transfer Issues
Entrée Vous Kitchens Franchise Agreement 1. Transfer. 2. Apprasial Issues. 3. Step In Issues
Entrepreneurs Source (The) Franchise Agreement 1. Transfer
Environmental Control Franchise Agreement 1. Receipts deposited into account controlled by franchisor
Epicor Software License Agreement 1. Transfer; 2. Franchisor controls the billings
ERA Real Estate . Agent Agreement 1. Transfer
Erie Insurance Group Agent Agreement 1. Transfer
Esso Standard Oil Dealer Agreement (Gas) 1. Transfer
Estrella Insurance Agent Agreement Excessive Control  1(d) Receipts deposited into account controlled by franchisor
Expert Heating and Cooling Dealer Agreement 1. Transfer
Express Personnel Services ** Franchise Agreement 1. Temporary Employment Agency where Franchisee hires the employees on their payrol. 2. Franchisor controlls the billing for the franchisee
Extreme Pizza Franchise Agreement 1. Transfer; 2. Step In
Exxon Dealer Agreement (Gas) 1. Transfer; 2. Brand Covenant/Deed Restriction Issues
ExxonMobil Oil Corp Dealer Agreement (Gas) 1. Transfer; 2. Brand Covenant/Deed Restriction Issues
Farm Bureau Life Insurance Company Agent Agreement 1. Transfer
Farmer’s Insurance Agent Agreement 1. Transfer. 2. Apprasial Issues
Fatburger Franchise Agreement 1. Transfer
FedEx Ground Agent Agreement 1. Transfer
Fed-Ex Home Delivery Agent Agreement 1. Transfer
Firestone Distributor Agreement 1. Transfer
Firestone Building Products Distributor Agreement 1. Transfer
Firkin Pubs, LLC Franchise Agreement 1. Permanent disability determined solely by franchisor
Fish City Crill Franchise Agreement 1. Permanent disability determined solely by franchisor
Five Guys Burgers Franchise Agreement 1. Permanent disability determined solely by franchisor
Flooring America Dealer Agreement 1. Transfer
Foster’s Grille Franchise Agreement 1. Step In Rights Issues
Fuddrucker’s Franchise Agreement 1. Transfer
G & G Oil Co. Dealer Agreement (Gas) 1. Transfer
Gambinos Pizza Franchise Agreement 1. Apprasial Issue
Gateway Station LLC Dealer Agreement (Gas) 1. Transfer; 2. Dealer/Jobber controls net profits
Geico License Agreement 1. Transfer; 2. Licensor controls bank account
Gene’s Seafood of America Franchise Agreement 1. Transfer
Gente Linda Franchise Agreement 1. Transfer
George Weston Bakery Franchise Agreement 1. Transfer issue on death of franchisee
Getty Petroleum Dealer Agreement (Gas) 1. Transfer
Gillison’s Variety Fabracation Dealer Agreement 1. Transfer
Gioninos Pizzeria Franchise Agreement 1. Transfer
Gloria Jeans Gormet Cofffee Franchise Agreement 1. Transfer
GMAC Real Estate Franchising Franchise Agreement Transfer 2: Agreement does not include language which allows reasonable transfer;
GN Hearing Care Corp Franchise Agreement 1. Transfer
GNC (General Nutr Center) Franchise Agreement 1. Transfer
Godfather’s Pizza Franchise Agreement 1.Transfer
Gold Star Chili Franchise Agreement 1. Transfer; 2 Excessive Royalty Fees
Golden Corral Franchising System Franchise Agreement 1. Transfer: 2. Apprasial Issue; 3. Franchee remains liable after transfer
Golden Spoon Franchise Agreement 1. Transfer
Golden Spoon Franchise Agreement 1. Transfer
Golfsmith Distributor Agreement 1. Transfer
Goodyear Distributor Agreement 1. Transfer
Gracie Barra Franchise Agreement 1. Transfer
Grand Harbour License License Agreement 1. Appraiser Issue
Grand Rental Station Franchise Agreement 1. Transfer
Grand Traverse Pie Franchise Agreement 1. Transfer
Great Florida Insurance Agent Agreement 1. Transfer; 2. Franchisee remains liable after transfer
Green Cactus Grill Franchise Agreement 1. Step In Rights; 2. Franchisor controls decision of Physian
Growmark, Inc. Distributor Agreement 1. Transfer
Gulf Dealer Agreement  (Gas) 1. Franchisee remains liable after transfer
Gulshan  Enterprises, Inc. Jobber Agreement 1. Franchisor Sets Net Profits; 2. Transfer
H&R Block Tax Serv. Franchise Agreement 1.Excessive Royalty Fee. 2. Transfer Restriction – property can only be used for an H&R business operation.
Haagen-Dazs (The) Franchise Agreement 1. Transfer
Hallmark Franchise Agreement 1. Transfer
Halo Candle Distributor Agreement 1. Transfer
Hampton Inn Franchise Agreement 1. Transfer; 2. Apprasial
Hampton Inn & Suites Franchise Agreement 1. Transfer
Hand & Stone Massage Spa Franchise Agreement 1. Transfer
Hardees Franchise Agreement 1. Transfer
Harley-Davidson Motorcycles Dealer Agreement 1. Transfer
Health Force Franchise Agreement 1  Receipts deposited into account controlled by franchisor; 2. Franchisor controlls the payment of taxes and payroll
HealthCare Recruiters Franchise Agreement 1. Receipts deposited into account controlled by franchisor; 2. Franchisor controlls the billing services
Healthy Subs Franchise Agreement 1. Transfer
Herdrich Petroleum Dealer Agreement (Gas) 1. Transfer
Heritage Home Health Franchise Agreement 1. Apprasial Issue
Hess Dealer Agreement 1. Transfer
Hilton Inns Franchise Agreement 1. Transfer
Home 2 Suites by Hilton Franchise Agreement 1. Transfer
Home Vestors Franchise Agreement 1. Ineligible business operation due to investment reasons.
Home Video System Franchise Franchise Agreement 1 Transfer
Honey Baked Hams Franchise Agreement 1, Transfer
Hooters Franchise Agreement 1. Ineligible business practice
Host Communications License Agreement 1. Transfer
Hotbox Pizza Franchise Agreement 1. Transfer
Hotstuff Foods Inc Franchise Agreement 1. Transfer
HuHot Mongolian Grill Franchise Agreement 1. Step In Rights
IGA, USA, Inc. Distributor Agreement 1. Transfer
Illico Inc Jobber Agreement 1. Transfer
Image Arts Etc. Franchise Agreement 1. Transfer
Independent Wholesale Distributor Agreement 1. Transfer
Intero Real Estate Services Agent Agreement 1. Transfer
Interstate Batteries Distributor Agreement 1. Transfer; 2. Apprasial; 3. Franchisor has the right to control property owned by franchisee.
Invisable Fence Dealer Agreement 1. Transfer
Iowa Wireless Agent Agreement 1. Transfer
J. C. Penny Catalog Franchise Agreement 1. Transfer; 2. Franchisor has the right to control funds
Jack in the Box Franchise Agreement 1. Step In
Jackson Hewitt Tax Services Franchise Agreement 1. Transfer
Jacksons Sports Grill Franchise Agreement 1. Transfer
Janbury Franchise Franchise Agreement 1. Franchisor has controll over the hiring of employees.
Jani-King Regional Franchise Agreement 1. Ineligible due to the fact that it is an development agreement
Jani-King Franchise Agreement 1. Transfer; 2. Franchisor controlls all billing and payment services; 3. Franchisor determines permanent disability;4. Franchisor contorls the contracts and receipt of funds
Jan-Pro Cleaning Systems Franchise Agreement 1.  Require applicant to deposit all receipts into account which F’or controls orfrom which withdrawals may be made only w/ F’or’s consent.; 2.  Excessive fees; 3. Possible development agreement issues; 4 Franchisor has direct involvement in the everyday business operation; 5. Franchisor has the right to control franchisee’s customers.
Java Dave’s Inc Franchise Agreement 1. Transfer
Java Station, LLC License Agreement 1. Transfer
Java’s Brewin Shoreline Franchise Agreement 1. Transfer; 2. Step In Issues
Jazzercise, Inc Franchise Agreement 1. Transfer
Jersey Mike’s Franchise Agreement 1. Transfer; 2. Step In Issues; 3. Franchisor determines perminate disability
Jimmy John’s Franchise Agreement 1. Step In Issues
John L. Scott, Inc. Franchise Agreement 1. Transfer; 2. Franchisor has the right to control property owned by franchisee
John Robert Powers Franchise Agreement 1. Transfer
Johnny Rockets Franchise Agreement 1. Step In Issues
Jones Oil Co., Inc. Dealer Agreement (Gas) 1. Transfer
Jumpin Juice & Java Franchise Agreement 1. Transfer; 2. Step In Issues
Jumping Party Franchise Agreement 1. Transfer
Jungle Quest Franchising Franchise Agreement 1. Transfer
Kalolgie Skin Care Franchise Agreement 1. Transfer
Keeway Motors Dealer Agreement 1. Transfer
Keller Williams Agent Agreement 1. Transfer; 2. Apprasial
Kelly’s Cajun Grill Franchise Agreement 1. Transfer
Kelly’s Fudge Franchise Agreement 1. Transfer
Kemp Associates Agent Agreement 1. Transfer
KFC Franchise Agreement Transfer 2: Agreement does not include language which allows reasonable transfer; 2. In some cases the agreement contains an option to enter into a franchise agreement.
Kocolene Marketing Jobber Agreemenet 1. Transfer
Kooler Ice Franchise Agreement 1. Transfer
Kubota Tractor Dealer Agreement 1. Transfer
Kudo Beans Franchise Agreement 1. Step In Issues; 2. Franchisor controls perminate disability determination
Kumon Math and Reading Center Franchise Agreement 1. Escessive Royalty Fees
Kyoto Bowl Franchise Agreement 1. Apprasial Issue
Kwality Ice Cream License Agreement 1. Transfer
La -Zy Boy Distributor Agreement 1. Transfer
Lady of America 1. Transfer; 2. Excessive Royalty Fees; 3. Franchisor controlls billing and collection services for the franchisor; 4. Step In Rights; 5. Apprasial Issues;  6.Possible Women only facility and franchiee would have to provide proof that they will not discreminate and proof to two bathrooms
LaMar’s Donuts Franchise Agreement 1. Transfer; 2. Step In Issue
Lampost Pizza Franchise Agreement 1. Step In
Laptop Xchange Franchise Agreement 1. Apprasial Issue
Larson Glastron Boats Dealer Agreement 1. Transer
Le Bleu Corp Distributor Agreement 1. Transfer
Le Peep License Agreement License Agreement 1. Transfer
Leo’s Coney Island Franchise Agreement 1. Transfer; 2. Apprasial
Lil’Kickers License Agreement 1. Transfer
Link Staffing Franchise Franchise Agreement 1. Franchisor controls the franchisee’s billings and payroll
Little Ceasers Franchise Agreement 1. Transfer; 2. Franchisor requires senior lien on all personal property collateral
Lloyd Staffing Franchise Agreement 1. Excessive Royaltys;2 Franchisor controlls the billing services;3. Franchisor controls emoloiyees
Long John Silver’s Franchise Agreement 1. Transfer
Long Wong’s Franchise Agreement 1. Transfer
LSAA LLC Jobber Agreement 1. Transfer
LunchStop, Inc. Franchise Agreement 1. Franchisor owns all M&E  – and leases to franchisee
Macs Convenience Store Franchise Agreement 1. Transfer
Madmoe Corporation Distributor Agreement 1. Step in Rights
Mahon Distribution Distributor Agreement 1. Transfer
MaidPro Franchise Franchise Agreement 1. Transfer
Maid-Rite Corp. Franchise Agreement 1. Step In Rights
Mainstay Suites Franchise Agreement 1. Transfer
Maple Ridge Health Franchise Agreement 1. Transfer; 2. Step In
Marathon Dealer Agreement (Gas) 1.  Transfer
Marathon Gas Dealer Agreement (Gas) 1. Restrictive Covenant
Marble Slab Creamery Franchise Agreement 1. Transfer;2 Apprasial
Massage Envy Franchise Agreement 1. Transfer
Master Shield Gutter Protection Dealer Agreement 1. Transfer
MasterCraft Boats Dealer Agreement 1. Transfer
Mastic Spa Franchise Agreement 1. Transfer
Mayflower Agent Agreement 1. Transfer
Mazzio’s Italian Eatery Franchise Agreement 1. Franchisor determines permenant disability
McAlister’s Deli Franchise Agreement 1. Step In Rights
McCullough /CITGO Dealer Agreement (Gas) 1. Brand Covenant/Deed Restriction Issues
McDonalds Franchise Agreement 1. Transfer; 2. Step In; 3 Franchisor requires existing franchsiee to remain liable once the franchise has been assigned
McPherson Oil Dealer Agreement (Gas) 1. Transfer
MellowMushroom Pizza Franchise Agreement 1. Transfer
Menchies Franchise Agreement 1. Transfer; 2 Apprasial
Mercury Marine Dealer Agreement 1. Transfer
Midias Franchise Agreement 1. Transfer
Miki House Distributor Agreement 1. Transfer
Mobil Oil Dealer Agreement (Gas) 1. Transfer
Moe’s Italian Sandwiches Franchise Agreement 1. Step In Issue
Monical’s Pizza Franchise Agreement 1. Franchisee remains liable after transfer
Monster Mini Golf Franchise Agreement 1. Transfer
Monterey Boats Dealer Agreement 1. Transfer
Moorehead Communications Dealer Agreement 1. Transfer
Mossy Oaks Prop. Franchise Agreement 1. Transfer
Mountain West Farm Bureau Mutual Agent Agreement 1. Transfer
Mr. Greek, LLC Franchise Agreement 1. Franchisor determines permanent disability
Mr. Payroll Franchise Agreement 1. Transfer; 2. Possible Eligiblity Issues regarding percentage of business related to check cashing
My Friend’s Place Franchise Agreement 1. Apprasial  Issue
NAPA Distributor Agreement 1. Transfer
Nathan’s Famous Franchise Agreement 1. Transfer; 2. Apprasial
Nathan’s Frank and Fry License Agreement 1. Transfer
National Tenant Network Franchise Agreement 1. Step In Rights
Nationwide Insurance Agent Agreement 1. Transfer
Nationwide Lifts Franchise Agreement 1. Transfer; 2. Apprasial
Nature’s Table Franchise Agreement 1. Step In Rights
New Tech Touch up System Dealer Agreement 1. Transfer
Nissan Fork Lift Dealer Agreement 1. Transfer
Nitro Fitness Franchise Agreement 1. Possible eligiblity issue – men only fitness center – will need to compy with the SOP requirement of Affidavit and diagrammed layout with two sepearte bathrooms
Noco Distributor Agreement 1. Transfer
Norrel Services Franchise Agreement 1. Franchisor controls billings and payroll; 2. Excessive fees; 3. Franchisor hires and controls the employees ; 4. Excessive liquidated damages
Northwest Mutual Agent Agreement 1. Transfer
Nothing Bundt Cakes Franchise Agreement 1. Transfer; 2. Step-In Rights
Nutrishop Franchise Agreement 1. Transfer
O’Charley’s Franchise Agreement 1. Transfer
Olivier Distributor Agreement 1. Transfer
On the Grill Franchising Corp Franchise Agreement 1. Apprasial Issue
Open2View.com Franchise Agreement 1. Step In Issues; 2. Franchisor requires receipts to be deposed into franchisor’s account; 3 Franchisor sets prices. 4. There are two separate agreements types, these comments relate to the real estate type agreement
Orange Tree Hot Dogs Franchise Agreement 1. Transfer
Oreck Sales Dealer Agreement 1. Transfer
Original Pancake House Franchise Agreement 1. Franchisor maintains ability to purchase or lease real estate owned by franchisee
Original Pizza Pan Franchise Agreement 1. Transfer
Overhead Door Distributor Agreement 1. Transfer
Owens Corning Distributor Agreement 1. Transfer
P. Jays Pizza Franchise Agreement 1. Transfer
Pacific Cycle Distributor Agreement 1. Transfer
Palace Resorts Franchise Agreement 1. Transfer
Papa’s Pizza to Go Franchise Agreement 1. Step In Issue
Parable Christian Stores Franchise Agreement 1. Ineligible business  – Non franchise related
Park Hospitality Franchise Agreement 1. Transfer
Park Inn Franchise Agreement 1. Transfer
Party Land Franchise Agreement 1. Apprasial Issues; 2. Step In Rights
Pat’s Pizza, Inc. Franchise Agreement 1. Transfer
Paul Mitcehll Partner School Franchise Agreement 1. Transfer issues on death and disability
Perkins Pancakes / Restaurant & Bakery Franchise Agreement 1. Transfer 2. In some cases the agreement contains an option agreement which is not acceptable.
Perko’s Café Franchise Agreement 1. Apprasial Issue; 2. Step In Rights
Permapave Distributor Agreement 1. Transfer
Pettit Oil Company 1. Transfer
Philips 66 Dealer Agreement (Gas) 1. Transfer; 2. Dealer /Jobber has the right to control the price
Pik-a-Pop Franchise Agreement 1. Transfer
Pillar to Post Franchise Agreement 1. Transfer; 2. Apprasial Issues; 3. Step In Rights
Pioneer H-Bred Distributor Agreement 1. Transfer
Pizza Guys Franchise Agreement 1. Transfer; 2. Franchisee remains liable after transfer
Pizza Hut, Inc. Franchise Agreement 1. Transfer
Pizza Pan Franchise Agreement 1. Transfer
Planet Fitness Franchise Agreement 1. Transfer
Play Date Drop in Child Care Franchise Agreement 1. Step In Rights
PM Terminals, LLC Jobber Agreement 1. Transfer
Polaris Dealer Agreement 1. Transfer – Reasonable Business judgment issues
Port of Subs, Inc. Franchise Agreement 1. Step In Rights; 2. Post Transfer Liability for Franchisee
Powell’s Sweet Shoppe USA LLC Franchise Agreement 1. Transfer
Powerhouse Gym Franchise Agreement 1. Transfer
Premier Garage Distributor Agreement 1. Transfer
Premier Learning Center Franchise Agreement 1. Apprasial Issue
Premier Rental Purchase Franchise Agreement 1. Transfer
PrimoHoagies Franchise Agreement 1. Apprasial Issue
Professional Auto Spa Franchise Agreement 1. Transfer
Proforma Franchise Agreement 1. Franchisor controls the franchisee’s billings and receipts
Prometric Testing Centers Franchise Agreement 1. Franchisor controls the franchisee’s billings and receipts
Prudential Agent Agreement 1. Transfer; 2. Franchisor controlls the franchisee’s billings and receipts.
Quality Tune-up Shops Franchise Agreement 1. Security Interest Issue; 2. Franchisor has right to approve 3rd party loans including SBA loans
Quik Stop Markets Franchise Agreement 1. Franchisor controlls the franchisee’s billings and receipts; 2. Franchisor owns all M&E and franchisee is required to lease
Radio Shack Franchise Agreement 1. Transfer
Radisson Hotel Franchise Agreement 1. Transfer; 2. Death or Disability Issue; 3. Reasonable Business Judgment Rule
Rascal’s Comedy Clubs Franchise Agreement 1. Transfer; 2. Post trasnfer liability for franchisee
Raymond James Financial Services License Agreement 1. Transfer
RE/MAX Franchise Agreement 1. Transfer
Real Deals, Inc. Franchise Agreement 1. Apprasial Issue
Red Lion Hotel Franchise Agreement 1. Transfer
Red Mango Franchise Agreement 1. Transfer
Red Robin Franchise Agreement 1. Transfer; 2 Development Issues
Remedy Intelligent Staffing Franchise Agreement 1. Franchisor controlls billing services for franchisee; 2. Franchisor controlls the employees;
Residence Inn by Marriott Franchise Agreement 1. Trnasfer – Reasonable Business Judgment Issues 2. Deed Restriction Issue
Residential Pacific Mortgage Franchise Agreement 1. Franchisor controlls billing services for franchisee
Rocky Rococo Franchise Agreement 1. Apprasial; 2. Post transfer liablity for transferee
Roly Poly Franchise Franchise Agreement 1. Transfer; 2. Step In rights
Romio’s Pizza Franchise Agreement 1. Step in rights
Romp N Roll Franchise Franchise Agreement 1. Step In rights
Roosters Franchise Agreement 1. Transfer
Rosati’s Pizza Franchise Agreement 1. Transfer; 2. Step In rights; 3. Apprasial
Rosie O’Grady’s Irish Pub Franchise Agreement 1. Transfer
Roto Rooter Franchise Agreement 1. Transfer; 2 Post transfer liability for transferee
Round Table Pizza Franchise Agreement 1. Step in rights
Ruby Tuesdays Franchise Agreement 1. Franchise
Rug Décor Franchise Agreement 1. Transfer
Russo’s NY Pizza Franchise Agreement  1. Apprasial Issue
Salvatores Franchise Agreement 1. Transfer
Sam Snead’s Tavern Franchise Agreement 1. Transfer
Samsung America Franchise Agreement 1. Transfer
Samuel Mancino’s Italian Eatery Franchise Agreement 1. Transfer
SAV-A-LOT, LTD Franchise Agreement 1. Transfer
Scooter’s Coffee House Franchise Agreement 1. Apprasial Issue
Scotts LawnService Franchise Agreement 1. Purchase Option for real estate
Seagrave Distributor Agreement 1. Transfer
Sedona Staffing Services Franchise Agreement 1. Transfer; 2. Franchisor controlls employees; Franchisor controlls franchise billings and services; 2. Franchisor controls disability determination.
Sgt Peppers Chicken Franchise Agreement 1. Step In Rights
Shape Up Sisters Franchise Agreement 1. Step in rights
Sharkey’s Franchise Agreement 1. Transfer; 2. Apprasial
Shave it Nation Franchise Agreement 1. Transfer
Shell Oil Dealer Agreement (Gas) 1. Transfer; 2. ROFR Contains unacceptable provisions; 3. Liquidation Damages recorded against the Real Estate
ShipOnSite Franchise Agreement 1. Transfer
Signs by Tomorrow Franchise Agreement 1. Transfer; 2. Apprasial; 3. Step in rights
Sinclair Oil Dealer Agreement (Gas) 1. Transfer
Sizzler USA Franchise Agreement 1. Transfer
Skewers Franchise Agreement 1. Transfer
Sky Taxi Franchise Agreement 1. Franchisor controlls billings services/payroll for the franchisee; 2. Franchisor controlls employees
Slender Lady Franchise Agreement 1. Possible ineligible business – non-franchise related; 2. Transfer
Snap Fitness 24-7 Franchise Agreement 1. Transfer; 2. Franchisor controlls the franchisee’s billings and receipts.
Snap-on Tools Franchise Agreement 1. Transfer
Snelling and Snelling Franchise Agreement 1. Franchisor controlls the franchisee’s billings and receipts;
Soccer Post Franchise Agreement 1. Transfer; 2. Apprasial;. 3 Step In Rights
Soho Hero Franchise Agreement 1. Transfer
Sotheby’s International Realty Franchise Agreement 1. Transfer
Southern Tsunami Franchise Agreement 1. Franchisor controlls the franchisee’s billings and receipts.
Spectrum Home Services Franchise Agreement 1. Transfer; 2. Step in rights
Speedy Car-X, Inc. Franchise Agreement 1. Apprasial Issue
Spherion Workforce Architects Franchise Agreement 1. Franchisor controlls the franchisee’s billings and receipts; 2. Franchisor controlls the employees
Sprint Agent Agreement 1. Transfer
Stagecoach Pizza Franchise Agreement 1. Step In Issues
Star mart Dealer Agreement (Gas) 1. Transfer
State Farm Agent Agreement 1. Transfer
Steak Escape Franchise Agreement 1. Transfer. 2. Step In Rights Issues
Stop N’ Save Franchise Agreement 1. Franchisor controlls the franchisee’s billings and receipts;
Streets of New York Franchise Agreement 1. Transfer
Stride Rite Franchise Agreement 1. Transfer
Strings Italian Café Franchise Agreement 1. Apprasial; 2. Step in rights
Sunbelt Business Brokers Network Franchise Agreement 1. Transfer
Sunoco Dealer Agreement (Gas) 1. Transfer; 2. Receipts deposited into Dealer/Jobber’s account;3. Purchase Option; 4. Restrictive Covenant
SunShine RV, LTD Franchise Agreement 1. Step in rights
Super America Franchise Agreement 1.  Transfer
Super Petroleum Inc Dealer Agreement (Gas) 1. Brand Covenant/Deed Restriction Issues
Superior Tool Sales Distributor Agreement 1. Transfer
Superiour Walls of America Franchise Agreement 1. Transfer; 2. Apprasial
Suzuki Dealer Agreement 1. Transfer
Sweet Candy Franchise LLC Franchise Agreement 1. Transfer; 2. Apprasial
Taco Bell Franchise Agreement 1. Transfer
Taco Mayo Franchise Agreement 1. Step In rights
Tan World Franchise Agreement 1. Transfer
Taylor Rental Franchise Agreement 1. Transfer
TBS Petroleum, LLC Dealer Agreement (Gas) 1. Transfer
Team 21 Franchise Franchise Agreement 1. Transfer
Teavana Franchise Agreement 1. Transfer
Tesoro Jobber Agreement 1. Transfer
Texaco Dealer Agreement (Gas) 1 Transfer; 2. Restrictive Covenant
The Greene Turtle Franchise Agreement 1. Franchisor determines permanent disability; 2. Apprasial; 3. Step In
The Meat House Franchise Agreement 1. Transfer; 2. Apprasial
The Old Spaghetti Factory Franchise Agreement 1. Transfer
The Pasta House Co. Franchise Agreement 1. Step In Rights; 2. Franchisee continues to remain liable after transfer
The Tutoring Cente Franchise Agreement 1. Step In Issues
Thomas Petroleum Dealer Agreement (Gas) 1. Transfer
Thrifty Nickle License Agreement 1. Franchisor controlls the franchisee’s employees; 2 Affiliation Issues; 3Apprasial Issues;4 Transfer;5
Tilted Kilt Franchise Agreement 1. Ineligible business pracitce
Tim Horton’s Franchise Agreement 1. Transfer;2 Franchisee containues to remain liable after tranfser; 3. Franchisee needs franchisor’s consent to obtain security interest.
Time Oil Dealer Agreement (Gas) 1. Transfer
Tire Factory Franchise Agreement 1. Transfer
T-Mobil Agent Agreement 1. Transfer
Tom’s Foods, Inc. Franchise Agreement 1. Apprasial Issues
Tony Roma’s Franchise Agreement 1. Apprasial Issues
Too Hottiest Franchise Agreement 1. Ineligible business practices;2.Transfer;3. Franchisor controls billing services
Tosco / Union 76 Dealer Agreement (Gas) 1. Transfer; 2. Appraisal Issue
Toshiba America Dealer Agreement 1. Transfer
Town Place Suites by Marriott Franchise Agreement 1. Transfer(reasonable business judgement issues)
Trane Company Distributor Agreement 1. Transfer
TRAQ Ltd Franchise Agreement 1. Transfer2. Step In rights
TriVision Energy, LLC Dealer Agreement (Gas) 1. Transfer
TriVision Energy, LLC Dealer Agreement (Gas) 1. Transfer
Truck Options Franchise Agreement 1. Apprasial Issues
True Value Membership Agreement 1. Trnasfer
TSO Marketing, Inc. License Agreement 1. Transfer
Tutti Frutti Franchise Agreement 1. Transfer
Twirl Inc Franchise Agreement 1. Transfer
U.S. Lawns, Inc. Franchise Agreement 1. Apprasial Issues
U.S. Pizza Company Franchise Agreement 1. Transfer
Umbria Pizzeria Franchise Agreement 1. Step In Issues
Union 76 Branded Reseller Agreement Dealer Agreement (Gas) 1. Transerr
Union Distributing Company Jobber Agreement 1. Transfer
Union Distributing Company Dealer Agreement (Gas) 1.Transfer; Receipts deposited into Dealer/Jobber ‘s Account
Unique Pizza Franchise Agreement 1. Transfer
United Hardware License Agreement 1. Transfer
Vagabond Franchise Agreement 1. Transfer
Valentino’s of America Franchise Agreement 1. Apprasial Issue
Valero Refining Company Dealer Agreement 1. Transfer; 2. Dealer (borrower) remains liable after transfer
Velocity Sports Performance Franchise Agreement 1. Transfer; 2 Appraisl Issue
Verizon Wireless Agent Agreement 1. Transfer
Village Coffee Franchise Agreement 1. Transfer
Vintner’s Cellar Franchise Agreement 1. Transfer; 2. Apprasial
Vision Source Franchise Agreement 1. Transfer; 2. Apprasial
Voo Doo BBQ & Grill Franchise Agreement 1. Apprasial;2 Franchisee remains liable after transfer
Wachovia Security Financial Network, LLC Agent Agreement 1. Transfer;2 Franchisor has ability to close out accouts.
Wahoo’s Fish Taco LLC Franchise Agreement 1. Transfer
Wellcraft Marine Dealer Agreement 1. Transfer
Wendy’s Franchise Agreement 1. Apprasial; 2. Franchisor has the ability to purchase the real estate
Wheat Montana Franchise Agreement 1. Transfer
Wheaton Van Lines Agency Agreement 1. Transfer
Wheel Repair Solutions Intnl., Inc. Dealer Agreement 1. Transfer; 2. Apprasial Issues.
Which Which Franchise Agreement 1. Franchisor determines permanent disabiltiy
Whiskey Creek Franchise Agreement 1. Step In Rights Issues
White House Chicken Franchise Agreement 1. Step In Rights
Wienerschnitzel Franchise Agreement 1. Transfer
Wine Loft Franchise Agreement 1. Apprisal; 2. Framchisee containes to remaine liable after transfer; 3. Franchisor determines permanent disability
Wings To Go Franchise Agreement 1. Step In Rights
Wolford America, Inc Franchise Agreement 1. Transfer
World Gym Franchise Agreement 1. Transfer
Xerox Corporation Distributor Agreement 1. Transfer
Yamaha Motor Corp Dealer Agreement 1. Transfer
Yogurtland Franchise Agreement 1. Step In Rights
Yogart Mountian Franchise Agreement 1. Apprasial
Zeus License Agreement 1. Transfer
Zodiak Boats Dealer Agreement 1. Transfer

About William Bruce

President, American Business Brokers Association / Business Broker and Accredited Business Intermediary assisting business buyers and sellers with the transfer of ownership since 1986 / Author: How to Buy a Business.
This entry was posted in Buying or Selling a Business, Franchises and tagged , , , , , , , , , , , , , , , , , , , , , , . Bookmark the permalink.

7 Responses to Some Franchises Are Not Qualified for SBA Guaranteed Loans

  1. Pingback: Best and Worst Franchises Listed by SBA Loan Defaults | William Bruce on Business: A Discussion

  2. In 1998, the SBA established an alternative path specifically for the franchise industry to avoid inconsistent eligibility determinations in its regional offices. That alternative is a public/private program called the Franchise Registry. If a franchisor files an application for inclusion on the Registry, its franchise agreement is reviewed by a private program manager, FRANdata, in consultation with the SBA national office in Washington, D.C. As described above, the review focuses on elements of the franchise program indicative of independence from and non-affiliation with the franchisor, i.e., the right to profit and bear losses. There is a cost to file with the Registry (currently $2,500), and the review process can take as long as several months. But once a franchisor is listed on the Registry, the franchise agreement is presumed to be eligible for SBA financing and the borrower’s creditworthiness becomes the only material issue on the table for the lender.

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  4. Pingback: The Best and Worst Franchises to Buy | William Bruce on Business: A Discussion

  5. Andrene Baltimore says:

    I’m Interested in becoming a Philip 66 or a Conico franchisee. What issue of transfer is the article referring to?

    • As regards Phillips, the SBA quoted “1. Transfer; 2. Dealer /Jobber has the right to control the price.” I suggest that you contact your regional SBA office and ask for clarification. Best wishes for your business venture.

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