On March 1, the United States Small Business Administration will discontinue the use of the FICO Small Business Scoring Service. Without the SBSS score to expedite the loan process, lenders will have to conduct a full credit analysis, impacting access to capital for franchises.

Franchising research firm Frandata established its Franchise Registry nearly 30 years ago, and with an evolving lending landscape, it provides another option for franchisors to validate themselves to lenders. Frandata President Edith Wiseman said the firm’s registry provides a comprehensive amount of information to the lending community. Wiseman said franchise brands that have been in […]

The International Franchise Association recently released the report from its 2024 Annual Franchisee Survey. The survey, conducted by FRANdata, provides a detailed analysis of the economic conditions on franchised businesses and surveyed over 1,400 franchisees nationwide.

The landscape of franchise financing is shifting. New lenders are entering the market, and the characteristics of the average franchisee are changing. The Small Business Administration (SBA) continues to make changes, and the Federal Reserve has been responding to a unique economy.

The past year was an adjustment period for lenders, as they’ve had to vet the eligibility of franchise brands without the help of the U.S. Small Business Administration’s Franchise Directory.