Question 1

As of August 1, 2025, what must a franchise brand be in to qualify for an SBA-backed loan?

Accepted Answer

As of August 1, 2025, the brand must appear in the SBA Franchise Directory for the franchisee to qualify for an SBA-backed loan. The June 1, 2025 SOP 50 10 8 also tightened underwriting standards and dropped the small-loan threshold from $500,000 to $350,000.

Question 2

Who pays a franchise broker?

Accepted Answer

The franchisor pays the broker a commission — not you. That is a structural conflict of interest to price in. In 2025 NASAA proposed a Model Franchise Broker Registration Act that would require brokers to disclose litigation history and compensation ranges; only New York and Washington currently require broker registration.

Question 3

Should a first-time franchisee sign a multi-unit area development agreement?

Accepted Answer

Be cautious. Over 56% of franchises are now multi-unit owned and brokers push multi-unit because it is a bigger deal for them, but roughly 30% of area developers miss their development schedule and area development agreements are binding. The first-timer rule is to validate one unit before committing to five.

Học viện Nhượng quyền NPV