Types of businesses most and least likely to be approved for SBA loan

Posted on April 20, 2015 by William Bruce
SBA loans by type of business

SBA loans by type of business

By William Bruce

It’s well known that some types of small to medium size businesses are more likely to receive SBA loans than others.

We are indebted to George Heaslip, “The Loan Professor” for the following ranking.  George is an independent SBA loan originator of many years experience.  George is based in South Florida and can be reached at (561) 329-1315 or by email at gbh7@mac.com.

Based on his experience and opinion, George periodically issues a ranking of business categories most and least likely to receive SBA loan application approval.  It’s a star rating method with five stars being the most likely to receive loan approval.

The list is updated quarterly and is the only one of its kind in the U.S.  This ranking is as of April 2015.

*** A/C & Heating

** Advertising and Promotion

Zero Adult Merchandise

*** Agricultural Products and Plantings

** Aircraft Maintenance

**** Aircraft Flight Schools, with real estate

* Air Duct Cleaning

** Alarm Systems, Residential and Industrial

** Amusement/Theme Parks established with real estate

**** Animal Care & Grooming, with real estate

**1/2 Animal Grooming, no real estate

** Antiques Dealer

Zero Apartment Houses, Strip Malls, all investor properties

*** Appliance Sales and Repairs

** Art Gallery/Dealer

** Arts and Crafts

** Art Framing

****1/2 Assisted Living Facilities with real estate

**** Auto Body & Repair Shop with real estate

**1/2 Auto Body & Repair, leased facility

*** Auto Car Wash, with real estate

** Auto Broker

Zero Auto Car Wash, no real estate

**** Auto Car Wash with real estate

** Auto Salvage

Zero Auto Used Car Lots

* Awards/Prizes/Engraving

***1/2 Beauty/Spa One Stop Centers, with real estate

** Beauty/Spa One Stop, leased

*1/2 Bed & Breakfast, with real estate

**1/2 Bagel Restaurant, leased

*** Bagel Restaurant, with real estate

** Barber/Styling Shop, franchise

Zero Barber/Styling Shop, leased

***1/2 Bakery, Neighborhood, with real estate

** Barges, Sea Transport

* Billiard Parlor

**** Biohazard Cleanup Services, Per Event

****1/2 Biohazard Cleanup Services with government accounts

***1/2 Boat/Marine Manufacturer with real estate

*** Boat Storage Facilities with real estate

Zero Boat Tours

* Book Store

*1/2 Bookkeeping Services

*1/2 Boutique and Bridal Shops

***1/2 Bowling with bar & restaurant and real estate

** Bridal/Baby Shops

**** Building Component Suppliers and Installers

**1/2 Building Supplies

**1/2 Building Renovators

*1/2 Business Brokerage Companies

* Greeting Card/Gift Shop

** Carpet Cleaning Franchise

**** Car Wash, with real estate

Zero Car Wash, no real estate

Zero Printer Cartridge Refil

Zero Casino, Gambling

***1/2 Catering with real estate

** Catering, Business & Residential, no real estate

*** Cement Product Manufacturers with real estate

***1/2 Cemeteries

Zero Charter Schools

**** Child Care Centers with real estate

** Child Care Centers, no real estate

**** Children Party Center, franchise, with real estate

* Children Party Services

*1/2 Chiropractic Services

***1/2 Chropractic Services seeking a building, as opposed to current lease

Zero Churches

Zero Cigar Store

** Cleaning, Clothing

*** Cleaning Janitorial

*** Closet Interior Manufacturers

** Clothing Stores, Leased, Franchised

** Club Houses

***1/2 Cold Storage Facilities

** Coin Laundry

Zero Collection Agency

***** Commercial Building/Condo For Business Expansion

* Computer Supplies

** Construction/General Contractor

**** Consulting Companies with fine tax returns (Legal, Accounting,

*** Consignment Shops with real estate

*1/2 Consignment Shops, leased facility

*** Contractors, established with government accounts

* Contractors, other

Zero Convenience Store

* Costume Shop

*** Crane Services

***1/2 CPA Practice

** Damage Restoration

** Dance Studios, children and/or adults

Zero Data Management

*** Delis with real estate

** Delivery Services

***** Dentists/Dental Practices

**** Dental Lab

***** Distribution Centers with real estate

*** Distribution Centers, leased facility

***** Doctors

**** Doctors With Patented Product

** Document Shredding

****1/2 Dog and Cat Kennels with real estate

*** Dry Cleaners, franchised

** Dry Cleaners, not franchised

** Dry Cleaners with real estate

** Educational Schools

** Embroidery Services with commercial accounts

*** Electrical Contractors, with fine business records

Insurance, Immigration, other professional)

** Employment Placement Companies

***1/2 Environmental Cleanup

* Electronics/Computers

** Equipment Sales, Services, leased facility

*** Equipment Sales, Services, with real estate

**** Equipment Suppliers/Installers, established

* Event Planning

***** Export Products Manufacturers

**** Exterminating Companies, franchise

****1/2 Farm/Ranch Facilities and Equipment

***** Fabrication Companies with real estate

***** Factories/Manufacturing

*** Farm Equipment Sales/Servicing

**** Fast Food Franchises, with real estate, and on the Franchise Directory

* Fencing Companies

1⁄2 Film Production Companies, Independent

* Financial Services

** Firearms

*** Fireplace and Furniture Manufacturers

** Fish Farm

Zero Fishing Vessels

*** Fitness Health Club, expansion to new facility, not leased

**** Fitness Centers, franchised with trainer(s) and real estate

*** Flooring Contractor

***1/2 Floral Centers with real estate

** Flowers

**1/2 Food Business, Retail

***** Franchises with 100 or more locations, on the Franchise

***1/2 Franchises, like above, no real estate

** Franchises other with real estate

Zero Franchise, New

Zero Franchises not on the Franchise Directory

*** Freight, with real estate

Zero Fund Raising

***** Funeral Homes with real estate

*** Furniture, Retail with real estate

Zero Game Room

***1/2 Garden Centers, growing sales, with real estate

***1/2 Gas Stations/Truck Stops, with real estate

**1/2 Gas Station/Convenience Store, with real estate

Directory, and with real estate

Zero Gift Shop

*** Glass Company, Auto, Home, Industrial

**1/2 Golf Courses, established, historic sales growth

* Golf Store

** Gourmet Catering

***1/2 Gravel Pits and Dredge

*** Grocery Store with real estate

*1/2 Grocery Store, leased

* Group Transportation

** Guard Company, Security

* Guided Tour

* Gyms, not franchised

Zero Hair Salon

***** Hardware Stores, with real estate, established, no big

** Hazmat Cleanup Services

**1/2 Health Products, franchise and on the Directory

* Hobby Shops

**** Home Health Care Services

***1/2 Home Health Care Staffing Services

** Home/Condo Owners Association Management Companies

*** Home Heating Fuel distributor

***1/2 Hostels with growing rent rolls

**** Hotels, Flagship

**1/2 Hotels/Motels, other

**** Hydraulic Systems and Services, with real estate

* Ice Cream/Yogurt

Zero Import Companies

Zero Investment Properties, like strip malls, apartments

**** Industrial Buildings/Condos, 51% owner occupied

*** Injection Mold, with real estate

** Insurance Agencies, franchise

**** Interior Design Units Manufacturers

* Internet Related

** Irrigation

*** Janitorial Services, commercial accounts

Zero Jet Ski Rent

** Jewelry, Retail

**1/2 Kitchen and Bath Retail

***1/2 Kitchen and Bath Products Manufacturer

** Land for business expansion and construction to start immediately.

***1/2 Landscaping with commercial accounts

*1/2 Landscaping, residential

box competition

**** Law Firm, business expansion/new facility

Zero Limo Business

*** Liquor Store with real estate

** Liquor Store, no real estate

** Locksmith

*** Lounge/Liquor, growing business with real estate

**** Machine shop, historical growth, with real estate

** Mail Packaging/Mail Order Services

***** Manufacturing Facilities with real estate

***** Manufacturing Facilities that export

*** Marinas with real estate

***1/2 Marinas/Restaurant, with real estate

** Marine Related Sales

* Marketing Company

*1/2 Massage, body, back and feet

***** Medical Related, except chiropractic

Zero Medical Billing Software and Services

***** Medical Product Distributers, with warehouse real

***1/2 Medical Product Distributers, leased facility

***1/2 Metal Fabricator, with real estate, good track record

Zero Micro Breweries

***1/2 Millwrights, with real estate

**1/2 Mines

*1/2 Miniature Golf

Zero Mobile Homes

**** Motel for conversion to an ALF, re-hab center, or nursing complex

***** Motel, Flagship, with real estate, otherwise ***

** Moving Companies

* Movie Theaters

** Mulch Products

** Museums, for profit

** Music

***** New Building or Upgrade/Expansion

Zero Not For Profit Organizations

Zero Nail Salons

**1/2 Nursery/Plants

****1/2 Nursing Home, with real estate

*** Nursing Home, no real estate

** Nutritional Stores, if on the registry and a franchise

Zero Office Building, not 51% business owner occupied

estate

***** Office Building/Office Condo, 51% business occupied

* Oil Wells

** Painters

Zero Parasailing

*** Parking Lot Cleaning and Maintenance

* Party Goods

**** Pawn Shop with real estate, otherwise **

*1/2 Personal Services

Zero Personnel Staffing, non-medical

**** Personnel Staffing – medical

**** Pest Control, established and franchised, otherwise *1/2

**** Pet Centers, with real estate, franchise, fine reviews

**** Pharmacies, no compounding

***** Pharmacies, compounding

** Photography services

* Pizza Shop

Zero Pressure Cleaning

Zero Phone Sales

** Pool Supplies, leased site

***1/2 Pool Supplies, establishes, with real estate

**** Pre-School with real estate, otherwise **

* Printer Cartridge Refil

* Printing and Typesetting

**** Professional Service Companies (Accounting, Legal, etc.) seeking a

***1/2 Plumbing Supply

***1/2 Pool and Supplies, no real estate

***** ` Pool and Supplies, with real estate, franchise

Zero Pool Cleaning/Maintenance

** Publishing

* Residential Realtors

****1/2 Pet Kennels and Supplies

***1/2 Recreational Facilities and Clubs, with real estate, fine records

**** Recycling Facilities

*** Restoration Services, franchise

***** Recycling Facilities with real estate

* Rental Businesses

** Repair Services, Licensed

****1/2 Restaurants, solid historical records, with real estate

*** Restaurants, franchised

** Restaurants, other

*** Retail, with real estate, solid historical records

larger facility

** Retail, no real estate

*** Roofing Contractor

**** Roofing Maintenance

* Roof Cleaners, independent, pressure washing

* Routes

* Sanitary Landfills

Zero Satellite Dishes (TV)

** Security Systems

***** Self-Storage Facilities

Zero Seven-Eleven Franchises

**** Sign Companies with real estate

*** Sign Companies without real estate

** Sight Preparation, for construction

Zero Skin & Massage

* Security Related

** Shoes/Repairs

*** Skating Rinks with real estate, food services

** Sod Distribution

*** Software Services, with three years of documented growth

***1/2 Sports Arenas

* Startups, unless customers are lined up

*** Sports Bar, established, clean records

***1/2 Sports Bar, established, clean records, with real estate

****1/2 Sports Sales Related, long business history, with real estate

*** Sports Sales Related, franchise and on the Franchise Directory

* Start Up Businesses, difficult, requires solid business plan high cash

Zero Strip Malls (considered as investment property)

** Sub (Sandwich) shops, franchise

*** Supermarkets, flag

* Surf and Active Wear

* Tailoring

Zero Tanning Salons

Zero Taxi Business

* Tax Preparation

* Teeth Whitening, non-dentist

Zero Telemarketing

* Telephone Sales

*** Tennis Clubs with real estate

***** Therapy Centers and Therapy In-Home Services

* Tobacco Related

*** Towing Services, Autos

**** Towing/Repair Services/Trucks

injection and collateral backup

*** Trade Contractors

**** Training Schools, for profit, established, with real estate

** Training Schools, other

** Transportation Services

Zero Travel Agencies

**1/2 Tree Farm, with real estate

**** Truck Repairs and towing

**** Truck and Car Washes, with real estate

***** Truck Stop, Full Service/Repair, with fuel, food, on site

* Tutoring

Zero Vacant Commercial Land

*** Vacant Commercial Land for business relocation/construction within a

Zero Valet Parking

** Variety Store, non-franchise

***1/2 Variety Store, franchise, with real estate

Zero Vending Machine Routes

***** Veterinarian

Zero Video Related

**** Uniforms Manufacturing, United States, with real estate

Zero Used Car Dealerships

***** Warehouses, for an expanding business that will occupy

** Water/Smoke Damage Restoration

** Water Purification

* Web Development and Hosting

* Wedding Planning/Gowns

** Well Drilling

*1/2 Wineries

***1/2 Wholesale Distributors, with real estate

** Wholesale Distributors, no real estate

** Yogurt Store

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William Bruce is an Accredited Business Broker and Appraiser assisting buyers and sellers of privately held businesses in the transfer of ownership.  His practice includes consulting services nationally on issues of business valuation and transfer.  He may be reached at (251) 990-5934 or by email at WilliamBruceOnline@gmail.com.  His business brokerage website may be viewed at www.WilliamBruce.net.

 

 

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Selling a Business: Buyer Acquisition Financing

Posted on February 1, 2015 by William Bruce

Business acquisition loan financingPrevious articles have discussed the importance of having a good reason for selling your business, getting the business ready for sale, setting the right asking price, and taking your business to market.  In this article, we will talk about the question of business acquisition financing for a business buyer.

Whether you want to our not, you’re going to get involved to one degree or another in the financial arrangements for business acquisition financing of your buyer.

Acquisition financing is always an issue in selling a business.  Almost all business buyers will need some amount of financing to complete the transaction.  Of all the business sales that I’ve seen, over 90% involved financing of some description.

Very few business buyers are sitting on enough cash to buy a business without financing.  People with that much money are usually “clipping coupons” and not interested in jumping into the challenges of daily business management.

So where do business buyers get the necessary financing?  There are three sources, aside from family member of the buyer who sometimes enter the situation.  Let’s discuss each:

Banks

Although most people seeking a loan to buy a business will think first of banks, I can tell you from years of business brokerage experience that banks generally do not make business acquisition loans.

That statement will surprise most people.  Once you’re in business, banks will compete for your patronage, but most will not stick their necks out in the beginning to make you a business acquisition loan.  Bank advertising would lead you to believe they would do so, but in more than 90% of the cases, they will find some reason to decline the business acquisition loan application.

The exception might be if you have a strong, years-long relationship with a bank and you can offer some other collateral such as Certificates of Deposits.  Or if the bank participates in the SBA loan program, they might be able to approve a SBA guaranteed loan (see below).

So don’t be surprised if a bank turns down your buyer.  And don’t take it as a reflection on your business or the buyer.  It’s just the way things are.

Now this is the humorous part of the situation.  It’s ironic but it has happened more than just a few times.  After your business buyer been in business for a number of months or a year or so, the same bank that turned him down for a loan to buy the business may come calling on him soliciting his banking business.  One of my buyers in this situation responded to the banker by assuming a serious air and in a somber tone, said, “Well now Mr. Banker, we’ll be happy to consider your application for our business.  Let’s see, we’ll need your financial statement and a list of references and your business plan for five years into the future.  Once we have your completed application, I’ll be glad to take it before my committee and let you know of our decision.”

The banker was taken aback.

SBA

The Small Business Administration (SBA), an agency of the federal government, provides for business acquisition loans through its approved lenders.  The SBA generally does not make direct loans, but rather the agency partially guarantees the loan that is made by the approved lender.   It’s known as the SBA 7(a) program.

The SBA list of approved lenders includes many banks with the largest lender currently being Wells Fargo.  But some community banks also make a significant volume of SBA guaranteed loans.  Some of these lenders will include in the loan total an amount for working capital in addition to the price of the business, after down payment.  Down payment requirements range from 20% to 35% plus there are usually up-front fees paid by the buyer for various requirements.  Interest rates are competitive with the marketplace.

Your business must be growing and profitable to be approved by the SBA.  A downward trend in gross revenue or profits will usually disqualify a business.  And another disqualifier of the SBA, is the requirement that the business buyer have experience in your industry.  This requirement pretty severely limits the pool of prospective buyers for your business who can use SBA financing.

The SBA route for a business acquisition loan is sometimes frustrating because of the time, detail and documentation that are involved.  If your buyer goes this route, be patient.  And stay on top of the SBA requests for information.  The quicker you can get the information and documentation to the SBA underwriter, the quicker your loan will close.

The Seller

In the majority of the business transfers that I handle, the owner of the business finances a portion of the purchase price for the buyer.  Some sellers are initially reluctant to offer financing.  However, with a strong down payment from a buyer who has a good credit bureau report and personal financial statement, the advantages to a business seller can be significant.

Not only is the tax bite usually lower for a seller who finances, but national surveys consistently show that businesses with seller financing (1) sell for more money and (2) sell in a shorter time frame.

In one recent survey of 3,965 business sales as reported by Toby Tatum in Transaction Patterns, the median selling price of businesses with seller financing was 15 percent higher that those without it.  The average down payment on seller-financed businesses was 37 percent.

And of course, there is the obvious benefit to the seller of additional income from the interest charged on the note.  The going rate as this is being written is around 5 to 6 percent.  This is significantly more than you could earn if you invested the money in a Certificate of Deposit.

And keep in mind, we’re not talking about you financing just anybody.  We’re talking about a buyer whom you have approved after checking his credit report and references, and who has made a down payment of usually between 25% and 50% of the selling price of the business.  Plus, you have a mortgage on the business and all it’s assets for the term of the note and the personal guarantee of the buyer.

Most owner financing – though not all — is in the form of a balloon note.  The balloon note solves two opposing desires.  The buyer of the business wants to keep his payments low; however, the seller usually wants his money as soon as possible.  By amortizing the note – calculating the payments – on, say, a 12-year payback schedule, the payments are kept low.  But the inclusion of a 5-year balloon requires that the remaining balance be paid off at the end of five years.

After the new owner has been in business for five years and has built a track record for himself at the bank, he should have no trouble going to his bank and refinancing the balloon.  In the low interest rate environment of recent years, I’ve seen new owners refinancing the balloon even before it came due to save money.  The balloon note has been a win-win vehicle for both buyers and sellers.

To recap, if you are willing to consider financing the sale of your business to a credit worthy buyer after an appropriate down payment, the advantages you can usually expect are:

  •  A lower tax on the proceeds of the sale.
  • A higher selling price.
  • A shorter timeframe to close the transaction.
  • Additional income from the interest on the note.

In conclusion, please keep in mind that selling a business is not an overnight process.  In my experience of over two decades as a business broker, about six to eight months is average.

He’re another article that might be of interest: Top 3 Issues Involved When Buying or Selling a Business.

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William Bruce currently serves as president of the American Business Brokers Association.  He is a business broker, an Accredited Business Intermediary (ABI) and a business appraiser assisting buyers and sellers of privately held businesses in the transfer of ownership.  His practice includes consulting services nationally for business buyers and sellers.  He may be reached at (251) 990-5934 or WilliamBruceOnline@gmail.com.

Posted in Valuing, Buying or Selling a Business | Tagged , , , , | 1 Comment

Selling a Business: Going to Market

Posted on October 8, 2014 by William Bruce
How to Sell a Business

How to Sell a Business

Please keep in mind that selling a business is not an overnight project.  It takes time.  My experience has been that six to eight months is about average.

Previous articles have discussed the importance of having a good reason for selling your business, getting the business ready for sale and how to set the right asking price for your business.

You are now ready to take your business to the marketplace.  So let’s first discuss a couple of documents you’ll need to have handy to sell a business.

Confidentiality

As you are already aware, confidentiality is important in the sale of a business.  If word gets out that the business is for sale, bad things can start to happen.  Employees start looking for other jobs, fearing that the new owner may not retain them.  Customers may wonder about the business and start shopping elsewhere.  Suppliers can get nervous.

So first, you’ll need a confidentiality agreement already drawn up and ready for signatures.  This is a must.  Anyone who replies to a generic ad for your business must sign a confidentiality agreement before being furnished any identifying details of the business.  This enforceable contract is also referred to as a non-disclosure agreement.

If you’re using a business broker in your sales effort, he already has a strong non-disclosure agreement drawn up and rigorously enforces the requirement for getting it signed before disclosure of any specific information.

And if you don’t mind me slipping in a commercial here for business brokers – remember, that’s the way I make my living – it is much easier to maintain confidentiality by using a professional business intermediary than by trying to advertise and sell the business yourself.  And national statistics show that business brokers will sell a business quicker and with fewer problems than owners trying to do the job themselves.  I’ve found that most business owners are very good at running their businesses, but few have sold a business before.  It’s a process that is fraught with landmines.

But hey, you already know I’m prejudiced!

The confidentiality agreement should require the name and home address of the person making the inquiry plus contact information including phone numbers and email address.  In my business brokerage practice, I also require that the prospect give me some information on his finances and business experience.  I’ve never had a legitimate prospect who was sincerely interested balk at signing the agreement.  If a person balks, it’s almost always an indication that he or she is a gossipy “tire kicker” who’s looking just out of curiosity.

The Marketing Package

The next document you’ll need to have ready is a multi-page marketing package on the business.  This summary should include a brief history of the business, a description of your current operation and a recap of the financial numbers.  This marketing package is sometimes referred to as the Executive Summary or the Confidential Business Review, which is the term I use most often.  Business brokers have a finely tuned template that is used for this important document.

This Confidential Business Review serves as an accurate and informative synopsis of your total business operation.  This document is very important in the process of selling your business. It is your primary marketing vehicle.  Once a prospective buyer expresses a sincere interest in the business, has signed a confidentiality agreement and passed a preliminary screening, he is then given a copy of this document.

The Confidential Business Review serves two purposes.  First, it allows the prospect to make an informed judgment as to whether he is interested in pursuing the business after reviewing the information contained in the document.  And secondly, the Confidential Business Review provides an outline that the prospect will use in a more thorough investigation of the business during the due diligence phase of the sales process.

The prospect will quite naturally be checking the numbers and information provided in the Confidential Business Review.  For this reason (and other good reasons), it is extremely important that no erroneous information be included in the document.  Even an honest mistake can arouse suspicion and kill the transaction.

While it’s important to paint as favorable a picture of your business in the Confidential Business Review as the facts will allow, it is imperative that you don’t step over the line and make any false representations.  Any erroneous information in the document will definitely come back to bite you!

Advertising

Now that we have the confidentiality agreement and the Confidential Business Review ready, we can start the advertising phase of marketing your business.

A few years ago, my office obtained most of our buyer prospects from our classified advertisement in the Sunday newspaper.  However, technology has changed the world, and we now receive the majority of our inquiries from the various websites we use on the Internet.  These  websites are particularly important for obtaining out of area prospects, but even local folks here in town are looking at the websites and will call to inquire about a business that interests them.

My office pays several thousand dollars a year in subscriptions to post our listings to 24 different business-for-sale websites.  The Internet is where the action is today.  No question about it.

What’s Next

To recap, you have spruced up your business premises, brought the books and records up to date, computed your yearly cash flow, put a reasonable asking price on the business, made arrangements for maintaining confidentiality, drawn up a business marketing package  and placed the business on the market with appropriate – but non identifying – advertising.  What happens next?

Let’s optimistically assume that a genuinely interested prospect has seen one of the ads for your business and called or emailed  to inquire.  If you’re using a business broker, the broker (1) has explained the need for signing the confidentiality agreement and obtained the necessary information and signatures on the agreement, (2) has questioned the prospect on his purchase criteria and (3) obtained some preliminary information on the prospect’s financial situation, business experience and his capacity to buy your business, and (4) briefed the buyer on the process – the steps involved – in buying a business.  Most prospects will be first time business buyers and really don’t have a clear idea of the actual step-by-step process one goes through in buying a business, so we spend some time with them doing a little buyer education.

If all of the above indicates that your business might be a good match for the prospect’s purchase criteria and if the prospect is deemed serious and sincere with the financial capacity to make the purchase, then he is given the Confidential Business Review of your business.

Let’s again be optimistic and assume that after reviewing your Confidential Business Review, the prospect calls back a few days later and says he is genuinely interested in the possibility of buying your company and wants to proceed with a more detailed look at the business.

The next logical step is a meeting between you and the prospect.  The next article will discuss ways to make the meeting a success.

#     #     #

William Bruce is a business broker, an Accredited Business Intermediary (ABI) and a business appraiser assisting buyers and sellers of privately held businesses in the transfer of ownership.  He currently serves as president of the American Business Brokers Association.  His practice includes consulting services nationally for business buyers and sellers.  He may be reached at (251) 990-5934 or Will@WilliamBruce.org
Posted in Business Valuation & Appraisal, Valuing, Buying or Selling a Business | Tagged , , , | 1 Comment

How to Sell a Business: Buyer Acquisiton Financing

Posted on August 25, 2014 by William Bruce

Sell a business; buyer acquisition financing

In addressing how to sell a business, we’ll discuss in this article the issue of buyer acquisition financing.  Previous articles have dealt with being able to give a good reason for selling your business, getting your business ready to sell, and how to price it.

As the seller of a business, you’re going to be involved in one way or another in the buyer’s quest for acquisition financing.

Financing is always an issue in selling a business.  Almost all business buyers will need some amount of financing to complete the transaction.  Of all the business sales that I’ve seen, over 90% involved financing of some description.

Very few business buyers are sitting on enough cash to buy a business without financing.  People with that much money are usually “clipping coupons” and not interested in jumping into the challenges of daily business management.

So where do business buyers get the necessary financing?  There are three sources and let’s briefly discuss each.

Banks

Although most people seeking a loan to buy a business will think first of banks, I can tell you from years of business brokerage experience that banks generally do not make business acquisition loans.

That statement will surprise most people.  Once you’re in business, banks will compete for your patronage, but most will not stick their necks out in the beginning to make you a business acquisition loan.  Bank advertising would lead you to believe they would do so, but in more than 90% of the cases, they will find some reason to decline the business acquisition loan application.

The exception might be if you have a strong, years-long relationship with a bank and you can offer some other collateral such as Certificates of Deposits.  Or if the bank participates in the SBA loan program, they might be able to approve an SBA guaranteed loan (see below).

So don’t be surprised if a bank turns down your buyer.  And don’t take it as a reflection on your business or the buyer.  It’s just the way things are.

SBA

The Small Business Administration (SBA), an agency of the federal government, provides for business acquisition loans through its approved lenders.  The SBA generally does not make direct loans, but rather the agency guarantees the loan that is made by the approved lender.   It’s known as the SBA 7(a) program.

The SBA list of approved lenders includes many banks and some non-bank lenders.  Some of these lenders will include in the loan total an amount for working capital in addition to the price of the business.  Down payment requirements range from 20% to 30% plus there are usually up-front fees paid by the buyer for various requirements.  Interest rates are competitive with the marketplace.

Your business must be profitable to be approved by the SBA.  And another SBA disqualifier is the requirement that the business buyer have experience in your industry or some closely related field.

The SBA route for a business acquisition loan is sometimes frustrating because of the time, detail and documentation that are involved.  If your buyer goes this route, be patient.  And stay on top of the SBA requests for information.  The quicker you can get the information and documentation to the SBA underwriter, the quicker the loan will close.

The Seller

In many transfers that I handle, the owner of the business finances a portion of the purchase price for the buyer.  Some sellers are initially reluctant to offer financing.  However, with a strong down payment from a buyer with a good credit bureau report and personal financial statement, the advantages to a business seller can be significant.

Not only is the tax bite usually lower for a seller who finances, but national surveys consistently show that businesses with seller financing (1) sell for more money and (2) sell in a shorter time frame.

In one recent survey of 3,965 business sales as reported by Toby Tatum in Transaction Patterns, the median selling price of businesses with seller financing was 15 percent higher that those without it.  The average down payment on seller-financed businesses in the survey was 37 percent.

And of course, there is the obvious benefit to the seller of additional income from the interest charged on the note.  The going rate as this is being written is around 6 ½ percent.  This is significantly more than you could earn if you invested the money in a Certificate of Deposit.

And keep in mind, we’re not talking about you financing just anybody.  We’re talking about a buyer whom you have approved after checking his credit report and references, and who has made a down payment of usually between 25% and 50% of the selling price of the business.  Plus, you have a mortgage on the business and all it’s assets for the term of the note and the personal guarantee of the buyer.

Most seller financing – though not all — is in the form of a balloon note.  The balloon note solves two opposing desires.  The buyer of the business wants to keep his payments low; however, the seller usually wants his money as soon as possible.  By amortizing the note – calculating the payments – on, say, a 12-year payback schedule, the payments are kept reasonable while the new owner assumes management responsibility.  But the inclusion of a 5-year balloon requires that the remaining balance be paid off at the end of five years.

After the new owner has been in business for five years and has built a track record for himself at the bank, he should have no trouble going to his bank and refinancing the balloon.  In the low interest rate environment of recent years, I’ve seen new owners refinancing the balloon even before it came due to save money.  The balloon note has been a win-win vehicle for both buyers and sellers.

To recap, if you are willing to consider financing the sale of your business to a creditworthy buyer after an appropriate down payment, the advantages you can usually expect are:

  1. A lower tax on the proceeds of the sale.
  2. A higher selling price.
  3. A shorter timeframe to close the transaction.
  4. Additional income from the interest on the note.

Should you have any questions about the issues discussed above, please don’t hesitate to phone or email.  Contact information is below.

In the next article, we’ll talk about how to actively market your business while maintaining strict confidentiality.

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William Bruce is a business broker, an Accredited Business Intermediary and a business appraiser.  His practice includes consultations nationally on matters involving business valuations and transfers.  He currently serves as president of the American Business Brokers Association.  William may be reached at (251) 990-5934 or by email at Will@WilliamBruce.org

Posted in Business Valuation & Appraisal, Valuing, Buying or Selling a Business | Tagged , , , , | 1 Comment

Thinking of becoming a business broker? Looking for business broker training programs?

Posted on August 22, 2014 by William Bruce
Become a business broker with training.

Become a business broker with training.

by William Bruce

Updated November 25, 2016

As an instructor for the business broker training programs of the American Business Brokers Association, I’ve had the rewarding opportunity of offering training to numerous individuals. Many of these folks have gone on to very prosperous careers in business brokerage (and become good friends in the process).

What I’ve learned is this: A business background is essential to success as a business broker. Even better is prior ownership of a small to medium size business.

Beyond this, other personal assets that are important for success are (1) a sales aptitude, (2) an ability to be diplomatic in difficult situations and (3) a stick-to-it determination to work hard and independently on your own schedule without becoming lazy. (I’ve been a business broker for over two decades, and I’ve seen laziness doom a few individuals.)

Also important is the ability to budget your personal finances. While the income potential from business brokerage is significantly into the six figures, it tends to be “lumpy.”  My point: Don’t go out and buy a new Mercedes with your first commission!

So what else do you need to become a successful business broker?

Well obviously, you will need some training specific to business brokerage. Regardless of your education and business background, there are many considerations specific to the profession that you’ll want to become familiar with. Just a few of these are:

  • Should I buy a business brokerage franchise or go independent?
  • What about office space: home office or “real” office?
  • How do I get listings if I’m just starting my practice?
  • What’s percentage commission should I charge?
  • How do I recast financial statements for discretionary cash flow?
  • What are the most common business appraisal methodologies?
  • How do I build a marketing package for each type of business?
  • How do I maintain strict confidentiality while marketing nationally?
  • What advertising venues are appropriate for marketing a business for sale?
  • How do conduct the initial buyer / seller meeting?
  • What are the do’s and don’ts of successful negotiations on price and terms?
  • How do I get the transaction to the closing table (and get paid!)?
  • What documents are involved in closing?

To read our article on the duties and responsibilities of business brokers, please click “What Are Business Brokers and What Do They Do?”

There are several business broker training alternatives available for individuals who want to enter the profession. The American Business Brokers Association conducts a two day training seminar offered four times a year at various locations around the country.  For additional offerings, a quick Google of “Business Broker Training” will return many options.

Some final thoughts:

  • When considering your professional training options, check references of previous students.
  • Make sure the training program you select offers post-classroom support, preferably at no cost.
  • Check your state laws. Currently 17 states require business brokers to have a real estate license regardless of whether actual real property is being transferred.
  • Before you commit to a business brokerage franchise or licensing arrangement (both of which can be expensive), investigate your options as an independent.  Some franchises are very good, but it’s easier than ever to be an independent. The decision depends on your personal needs and preferences.

Additional Information

For further reading, here are additional related websites and articles:

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William Bruce currently serves as president of the American Business Brokers Association.  He is a business broker, an Accredited Business Intermediary (ABI) and a business appraiser assisting buyers and sellers of privately held businesses in the transfer of ownership.  His practice includes consulting services nationally for business buyers and sellers.  He may be reached at (251) 990-5934 or WilliamBruceOnline@gmail.com.
Posted in Business Valuation & Appraisal, Valuing, Buying or Selling a Business | Tagged , , , | Leave a comment

How to Sell a Business: The Critical Question of Price When Selling a Business

Posted on July 1, 2014 by William Bruce
Businesses for SaleUpdated May 24, 2021 by William Bruce, President, American Business Brokers Association

Nothing causes the buyers and sellers of privately held businesses more anxiety than the problem of valuation.  The question of selling price haunts both parties.  The seller doesn’t want to price his business too cheap and “leave money on the table.”  On the other hand, the buyer of the business is afraid he’ll pay too much and not get the best possible deal.

In our first article, we talked about the importance of being able to give a good reason for selling.  In the second article, we discussed how to get a business ready to sell.

In this article, we explore the critical issue of pricing.

The most common mistake that I’ve seen in my years as a business broker, is that business owners tend to overprice their business.  It’s quite natural to do so, particularly if you’ve started the business from scratch and grown it into a successful company.  You quite understandably have an emotional investment in the business in addition to a financial interest.

It’s the same phenomenon that some of us have experienced when we sell our home.  I thought my first home, with all the improvements my wife and I had made, was worth much more that it actually was.  I soon learned that the market, not the owner, dictates price.

The disadvantages of overpricing a business are serious.  As we discussed, the first question most business buyers ask is “Why is the business for sale?”  Frequently the second question is “How long has the business been for sale?”  If the business has been on the market for a long time and hasn’t sold, it raises real doubt in the buyer’s mind, which is hard to overcome.

Another problem with an overpriced business is that if you’re using a business brokerage firm, the agents in the office will immediately recognize that the business is overpriced and give it very little exposure.  Most business brokers work strictly on commission.  They don’t get paid until the business is sold, and they will not waste time on a business that will not sell because it is overpriced.

And today’s business buyers are pretty savvy.  All of the appraisal guidelines and rules-of-thumb on valuing businesses are available on the Internet to anyone who will take a little time to find them.  So most buyers will have a fairly accurate idea of what a particular business is worth.   If a business is grossly overpriced, the buyer prospect will not even look – and you’ve lost some of your best prospects who will go on to buy another business for its fair market value.

So, if you don’t retain anything else from this article, let it be this from the voice of experience and the school of hard knocks: Nothing is harder to sell than a business that is overpriced.

The appraisal of privately held businesses is not an exact science but there are guidelines and rules-of-thumb that can be used for a quick approximation of value.  And formal business appraisals are now readily available.

Certain situations require a formal business appraisal such as the larger merger-acquisition situations, large loan applications, management performance tracking, estate planning, divorce and the most dreaded of all — IRS issues.  And you might want to order a formal appraisal of your company.  After all, it certainly takes the guesswork out of the situation.

However, what we will discuss here is not a formal appraisal but rather the informal methods of quickly approximating the value of a business entity.  All of the guidelines we’ll quote are averages derived from hundreds of completed transactions reported to national and regional databases.

Let’s First Define What You’re Selling

Most small business transfers are asset sales.  This means that the buyer of the business buys certain assets of the business – usually the furniture, fixtures, equipment, inventory, the business name, and goodwill.  These assets are transferred to the buyer at closing free and clear of any financial encumbrances.  Generally not included in an asset sale are the cash on hand and the accounts receivable.  These two items are usually retained by the seller.

The opposite of an asset sale is a corporate stock sale.  In this case the purchaser buys the outstanding shares of stock in the corporation, thereby taking control of all the assets and debts of the business.

And a basic word on business value might be in order here.  An on-going business entity that is earning a profit is worth more than the sum of its tangible assets.  What is really being transferred in the sale of a business is an income stream.  Business appraisers seek to put a value on that income stream.

There are two kinds of business appraisal guidelines.  The first one — and the easiest to use — says that a business should sell for a certain percentage of annual revenue.  The other formula works off of the discretionary cash flow of the business.  These guidelines include all furniture, fixtures and equipment needed to do business.  Inventory value, at cost, is added to the guideline results.  And as stated above, the sellers of most small-to-medium size businesses do not include in the sale any cash or accounts receivable.  Hence, the guidelines do not include these items.

Nor do the guidelines include any allowance for real estate.  The guidelines assume that the business is in a leased location at a competitive lease rate.  If real estate, cash or accounts receivable are to be included in the sale of a business, their value should be added to the guideline results.

And these guidelines assume that the business is making a net profit percentage that is average for the type of business.  If the business is above or below average in profit percentage for its category, the resulting values would need to be adjusted accordingly.

If, in the worst case, the business is only breaking even or loosing money, even after the adjustments used to determine true cash flow, then these guidelines do not apply.  If the business has no positive income stream to sell, then about the best price a business owner could hope for in this case would be the discounted value of the inventory, furniture, fixtures and equipment.

(1) Value as a Percentage of Annual Revenue

First, almost all profitable privately held businesses with annual sales under $5 million will sell for somewhere in the range of 20% to 80% of annual revenue.  In one large database, the average price in the year 2000 of 3,8000 transactions was 44% of revenue.

Exactly where in this range of 20% to 80% of revenue the selling price of a specific business falls depends on the kind of business.  Convenience stores, for example, are at the low end of the range and dry cleaners are at the high end.

If you’re working with a business broker, ask him to look up the appraisal formulas for your type of business.

(2) Value as a Multiple of Cash Flow

The other set of guidelines seeks to approximate the value of a business by applying a multiple to the discretionary cash flow that a business generates.  This second guideline states that most businesses will sell for between one to six times owner’s discretionary cash flow.   Exactly where in this range that a specific business falls, again, depends on the type of business.

From the database of completed transactions, we know that retail establishments sell for a lower multiple than manufacturing businesses.  Again, ask your professional advisor for the multiple that applies to your kind of business.

In Summary

Remember, the market determines price.  Make sure that you understand the market for your kind of business.  It’s a sure bet that your prospective buyers will.

And finally, if you are using a business broker in the sale of your business, work with him.  He has access to myriad resources for all types of businesses.   And your broker can assist you in obtaining, if you desire one, a professional and fully documented, independent third party written appraisal of your company that will take any doubt out of the situation.

After you’ve come to a fairly accurate conclusion of your company’s value, then you need to price the business for sale.  Because all buyers will want to negotiate from whatever price you quote them, you need to add in a “fudge factor” for negotiating purposes.  I usually suggest 10% to 15% “padding.”  Then you can use this margin as “wiggle room” as the negotiations proceed.

In the next article, we will discuss the available finance sources for your business buyer.

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William Bruce is a business broker, an Accredited Business Intermediary (ABI) and a business appraiser assisting buyers and sellers of privately held businesses in the transfer of ownership.  His practice includes consulting services nationally for business buyers and sellers.  He may be reached at (251) 990-5934 or WilliamBruceOnline@gmail.com.
Posted in Business Valuation & Appraisal, Valuing, Buying or Selling a Business | Tagged , , , , , , , | 4 Comments

Ranking of states by dollar amount of incentives used to recruit industry.

Posted on March 3, 2014 by William Bruce

groundbreaking ceremonyIt’s ironic that New York, with one of the greatest net outflows of industry, is first by a country mile when ranked by incentives granted to companies to locate within the state.

The Washington, D.C.-based non-profit, Subsidy Tracker, recently released a report ranking all states by dollar amount of incentives used to attract industry over the past 10 years ending December 31, 2013.

According to their report, these are the top 10 states for the last 10 years:

State Subsidy Valuesort icon Number of Subsidies
New York $20,932,681,224 68,947
Washington $13,036,329,150 12,788
Michigan $9,988,504,162 15,025
Louisiana $7,663,729,147 5,258
Kentucky $7,356,032,306 3,983
Texas $6,314,830,245 3,942
Indiana $5,875,569,695 6,314
Missouri $4,709,727,204 3,407
Pennsylvania $4,468,568,047 7,804
Oregon $4,212,928,624 10,085

It’s no surprise that Texas made the list, but Louisiana caught my eye at number four nationally.  And Michigan at number three appears to be valiantly trying to stem the net outflow of industry from that state.

My home state of Alabama ranked number 19 on the list.  To see where your state ranks, the full list can be accessed here.

The five states with the lowest incentives used were:

North Dakota $85,425,911 617
Montana $32,056,820 107
New Hampshire $5,958,629 540
Hawaii $516,310 1,415
Wyoming $508,787 9

Boeing was one of the top companies receiving government incentives.  The aerospace giant took over $13 billion from various states over the last 10 years.  This is amusing in light of Boeing’s recent complaint lodged against Airbus for locating an aircraft plant in the U.S.  Boeing’s complaint, ironically, alleged that Airbus had received too much by way of subsidies from European governments.

It seems that all is fair in love, war and industrial recruitment.

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William Bruce is a business broker and appraiser.  He currently serves as president of the American Business Brokers Association.  His practice includes consultations nationally on matters involving business valuations and transfers.  He may be reached at (251) 990-5934 or by email atWilliamBruceOnline@gmail.com.  His business brokerage website may be viewed atwww.WilliamBruce.net.
Posted in Gulf Coast Regional & National Economy | Tagged , , | Leave a comment

Best and Worst Online Retailers Listed for Password Security Risk

Posted on February 14, 2014 by William Bruce

password

by William Bruce

Dashlane, a website password security company, has surveyed the top 100 American online retailers to assess their password security policies. The survey produced surprising results.

Apple received the highest rating and was the only retailer to receive a perfect score, while Newegg, Microsoft, Chegg and Target, surprisingly, rounded out the other highest scoring online retailers.

MLB.com, Karmaloop and Dick’s Sporting Goods received the lowest scores. Amazon, Walmart, Victoria’s Secret and Toys “R” Us were also among the lowest ranked sites.

Some key findings:

  • 55 percent of online retailers still accept notoriously weak passwords such as “123456” or “password.”
  • 51 percent make no attempt to block entry after 10 incorrect password entries including Amazon, Dell, Best Buy, Macy’s and Williams-Sonoma.
  • 61 percent to do not provide any advice on how to create a strong password during sign up, and 93 percent do not provide an on-screen password strength assessment.
  • Eight sites including Toys “R” Us, J.Crew and 1-800Flowers.com send passwords in plain text via email.

Listed below from best to worst are the rankings of America’s top 100 online retailers:

  1. Apple
  2. Microsoft
  3. Chegg
  4. Newegg
  5. Target
  6. Williams-Sonoma
  7. CDW
  8. Amway
  9. Musician’s Friend
  10. Nike
  11. Best Buy
  12. WW Grainger
  13. Walgreens
  14. Express
  15. Sony
  16. Abercombie & Fitch
  17. Bass Pro Outdoor
  18. CVS
  19. MSC Industrial Supply
  20. Hayneedle
  21. Oriental Trading Co.
  22. The Children’s Place Retail Stores
  23. OfficeMax
  24. Nordstrom
  25. Deluxe Corp.
  26. Crate and Barrel
  27. American Eagle
  28. Ann Inc.
  29. Sears
  30. Dell
  31. Neiman Marcus
  32. Saks
  33. Lowe’s
  34. LL Bean
  35. Avon Products
  36. DSW
  37. JC Penny
  38. Foot Locker
  39. Costco
  40. Gap
  41. Green Mountain Coffee
  42.  GameStop
  43. Chico’s FAS
  44. Gilt Groupe
  45. Estee Lauder
  46. PC Connection
  47. HSN
  48. Etsy
  49. The Home Depot
  50. Staples
  51. Barnes and Noble
  52. ShopNBC
  53. CafePress
  54. Office Depot
  55. Macy’s
  56. HP Home/Office Store
  57. Rakuten
  58. Cabela’s
  59. Ralph Lauren
  60. Build
  61. Sierra Trading Post
  62. Northern Tool
  63. Amazon
  64. Walmart
  65. Kohl’s
  66. Fingerhut (Bluestern Brands)
  67. Scholastic Inc.
  68.  Eddie Bauer
  69. 1 Sale a Day
  70. Victoria’s Secret
  71. Overstock
  72. Vistaprint
  73. Fanatics
  74. Urban Outfitters
  75. Shutterfly
  76. Wayfair
  77. PCM
  78. Groupon
  79. REI
  80. Blue Nile
  81. Fresh Direct
  82. RueLaLa
  83. Zulily
  84.  1-800 Contacts
  85. Disney Store
  86. Net-A-Porter
  87. Hulu
  88. Shoebuy
  89. Edible Arrangement
  90. Restoration Hardware
  91. 1-800 Flowers
  92. Vitacost
  93. Nutrisystem
  94. American Girl
  95. J. Crew
  96. Toys R Us
  97. Aeropostale
  98. Dick’s Sporting Goods
  99. Karmaloop
  100. MLB

To review the full study results, please click here.

Posted in Other | Tagged , , , , , | 2 Comments

The Business of College Football. Who’s Making the Most Money?

Posted on August 29, 2013 by William Bruce

Business of College Football

By William Bruce

Unless you’ve been living under a rock, you know that college football is big business.   In fact, it’s huge.

Thanks to a recent study by Scott Thomas of the The Business Journals, we are able to clearly see which schools are pulling in the money.

Listed below are the top 20 schools in the country ranked by the total 3-year football revenue from 2009 through 2011:

  • Texas                  $294 million
  • Alabama             $231 million
  • Georgia               $221 million
  • Auburn               $220 million
  • Michigan             $219 million
  • Florida                $216 million
  • Penn State         $209 million
  • LSU                     $206 million
  • Notre Dame       $202 million
  • Ohio State          $183 million
  • Oklahoma           $177 million
  • Arkansas            $174 million
  • Tennessee          $166 million
  • Nebraska            $160 million
  • South Carolina   $152 million
  • Iowa                    $141 million
  • Michigan State   $139 million
  • Texas A&M        $132 million
  • Wisconsin           $130 million
  • Washington        $126 million

Of course, it should be remembered that it’s not all profit.  These are gross revenue numbers and there are significant expenses – in addition to winning football teams – involved in producing these revenue numbers.

Other nuggets from the report: The school with the highest average home game attendance over three years was Michigan with 112,000 seats filled in their stadium.  Ohio State was second with 105,000 and Alabama third with 102,000 attending home games, on average.

How about success on the football field in addition to success at the bank?  The top 10 most successful teams over the last three seasons, including 2012, in winning percentage are:

  • Oregon                    .900
  • Boise State              .897
  • Stanford                  .875
  • Alabama                  .875
  • LSU                          .850
  • No. Illinois               .810
  • Oklahoma                .800
  • Texas Christian      .795
  • Oklahoma State      .795
  • Ohio State                .789

Proponents of a successful college program say that football serves broader university interests, as it encourages more and better student applications and promotes alumni and government support.

In his book on the history of modern era college football, Michael Oriard makes the point that football is “the chief activity through which alumni remain attached to their university.”  It provides, he says, meaningful rituals and a sense of community “whose social benefit is hard to measure but nevertheless is real and powerful.”

Bear Bryant made the same point more succinctly when he said, “It’s kind of hard to rally ‘round a math class.”

Posted in Auburn University, Gulf Coast Regional & National Economy, Other | Tagged , , , , , , , , , , , , , | 1 Comment

Some Franchises Are Not Qualified for SBA Guaranteed Loans

Posted on May 21, 2013 by William Bruce

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
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