Effective June 1, 2025, the United States Small Business Assocation (SBA) will reinstate the SBA Franchise Directory, which the administration had eliminated in 2023. The SBA Franchise Directory is a centralized resource that helps lenders determine the eligibility of franchise brands for SBA loans. It exists to streamline the loan approval process by providing a
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Oregon considers new franchise relationship law
Last week, Representative Janelle Bynum of the Oregon House of Representatives introduced House Bill 2946 to amend Oregon Revised Statute 650.005 by adding new rules for franchisors doing business in the state. If passed, bill 2946 (which appears to be largely modeled on California and Washington’s existing franchise relationship laws) would impose several new requirements…
Nevada passes covid-19 business liability protection act
On August 11, 2020, Nevada Governor Steve Sisolak signed into law a bill that gives most businesses liability protection from COVID-19 lawsuits. The new law, which was Senate Bill 4 (the “Act”), gives limited immunity from lawsuits to businesses that follow relevant health guidelines to protect their employees and customers from the novel coronavirus.
Since…
FTC REVISES MONETARY EXEMPTIONS UNDER THE FRANCHISE RULE
Today, the Federal Trade Commission (the “Commission”) announced an amendment to its “Disclosure Requirements and Prohibitions Concerning Franchising” (16 C.F.R. Part 436) (the “Franchise Rule”) revising the monetary limits for three of the listed exemptions. Under these exemptions, a company that would otherwise qualify as a “franchisor” as defined under the Franchise Rule is excused…
California Department of Business Oversight Discontinuing Online Franchise Document Access
For the past decade or so, California has been one of the few states to provide open, online document access to all franchise-related filings made in the state. The current form of this access is available via the state’s DOCQNET website at https://docqnet.dbo.ca.gov/. The system allows anyone to search the California filings, including franchise…
Indiana Extends Registration Periods For Some Franchisors
On April 8, 2020, the Indiana Secretary of State, Securities Division, announced that it would extend the registration periods for franchisors that are currently set to expire between March 16, 2020 and May 31, 2020. The text of the Securities Commissioner’s Administrative Order No. 20-0012 reads as follows:
The Indiana Secretary of State, Securities Division…
FASB Extends Implementation of ASC 606 for Franchisors
The Financial Accounting Standards Board (“FASB”) unanimously voted today to propose delaying the effective date for its Accounting Standards Codification® Topic 606 (“ASC 606”), Revenue From Contracts With Customers, for franchisors that are not public business entities. As I reported in October 2018, franchisors have been required to implement this changed revenue recognition standard…
Washington Updates Franchise Registration Requirements
The Washington Department of Financial Institutions Securities Division (the “Securities Division”), which manages franchise registration and renewal filings for the state, recently updated its filing requirements for franchisors. The state’s announcement reads as follows:
Updated Washington Franchise Agreement Addendum. The Securities Division has provided a sample Washington Franchise Agreement Addendum for many years. We have…
Virginia Further Extends Franchise Renewal Period
On April 2, 2020, the Virginia State Corporation Commission (“SCC”) further extended the deadlines for franchisors to submit applications to renew their existing franchise registrations in response to the COVID-19 pandemic. This follows the state’s prior extension dated Monday March 16, 2020. The text of the SCC’s Order is as follows:
EXTENSION ORDERSOn March…
Indiana Franchise Registration Update
In a release dated March 24, 2020, the Indiana Secretary of State has notified franchise filers that its franchise registration operations should continue largely unaffected. The state is asking franchise filers to handle their registrations through the Indiana Securities Portal, which is located at https://securities.sos.in.gov/.
Unlike California, Maryland, New York, and…