Navigating SBA Loan Requirements for Franchisors

This chapter explores the criteria franchisors must meet to be included in the SBA-approved directory, with a focus on the Franchise Disclosure Document and recent regulatory changes. It covers the new financial commitments expected from buyers, the calculation of total project costs, and the implications for buyer qualifications and liquidity. The discussion also addresses complexities in ownership designations, title holding for vehicles, and significant policy changes affecting business acquisitions.