Tuesday, April 22, 2008

Franchise Registry

Once upon a time, when I started working for the SBDC a decade and a half ago, getting an SBA-backed loan for a franchise was, I was told, a torturous event. Even SBA acknowledged that "inconsistent decisions", "excessively long processing time" and "failure to understand industry differences" plagued the process.

Now, "in a major effort to help small business owners, the U.S. Small Business Administration (SBA) offers the Franchise Registry that will expedite the processing of loans to small business franchisees." Some franchises will be vetted so that the potential franchisee doesn't have to do so much work.

Franchise Registry.com is in "a partnership with FRANdata, the only objective information company that researches and reports on franchising." It has some useful information, both free and for a fee; among the latter are UFOCs, Uniform Franchise Offering Circulars, which sell for $220 (older versions of the documents for $270). You SHOULD be able to get this from the franchisor if you are a serious candidate for buying into a franchise, at least in New York State. Questions about franchises should be directed to
State Department of Law
Investor Protection Bureau
Franchise Section
120 Broadway
23rd Floor
New York NY 10271
(212)416-8236 or (212)416-8637

1 comment:

Roger Green said...

Release Date: May 8, 2008
Release Number: 08-51
Contacts: Cecelia Taylor (202)401-3059, cecelia.taylor@sba.gov Heather Gough, FranNet LLC (502)753-2380, hgough@frannet.com

SBA and FranNet Team Up to Offer Online Training On “Franchising Basics”
for Small Businesses

WASHINGTON – Entrepreneurs considering franchising can now access a new online course from the U.S. Small Business Administration and FranNet to help them navigate the competitive franchise industry.

The introduction to franchising course, Franchising Basics, is a free online seminar which provides three key sections that examine more than 10 essential areas relating to franchising, including Is Franchising Right for You and How to Choose the Right Franchise. The course also covers franchising options, strategies for growth, and pitfalls to avoid. Course participants will be able to better understand franchising and decide if it is the best small business option for them.

The Franchising Basics course can be accessed from the SBA Web site at www.sba.gov, under the Free Online Training icon by selecting Franchising Basics in the Starting a Business section. The courses can be reviewed at the learner’s own pace and in their own time, and a certificate of completion will be provided to participants who finish the course.

“SBA is committed to helping entrepreneurs achieve their goals of business ownership, and the online training tool is both accessible and educational in determining if franchising is the right business option,” said Anoop Prakash, SBA’s associate administrator for Entrepreneurial Development.
“We believe that combining our resources to help build up small businesses and to help train future entrepreneurs is important to strengthening the nation’s small business community.”

The cosponsorship between SBA and FranNet allows both organizations to help entrepreneurs achieve their goals through educating them on opportunities, financing, research and realistic goal- setting. Investing in a business can be frightening and overwhelming, however, SBA and FranNet provide tools and guidance to ease the decision. FranNet uses educational seminars and personalized consulting services to help entrepreneurs determine if franchising is the right path.

“FranNet has been diligently working on increasing the knowledge of the benefits of franchising to the public,” said Jania Bailey, President and COO of FranNet. “Franchising is not just about french fries, but rather a proven business format that grows businesses quickly. Hundreds of thousands of people have opened their own business by buying a franchise. Franchises create thousands of jobs each year, help develop local economies and provide endless business opportunities. Buying a franchise is a wonderful way to go into business for yourself, but not by yourself. Franchises have proven systems and a team of people in place to make sure you are successful in building your business.”

FranNet provides no-cost guidance, information and support to individuals who are interested in purchasing a franchised business. FranNet consultants specialize in helping their clients find the right franchise through their exclusive matchmaking process. FranNet also hosts numerous informational seminars and educational programs that are open to the public each month throughout the country and online. To learn more about opportunities with FranNet call 1- 800-FRANNET or visit www.frannet.com.