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In 2020, banks had to contend with general new underwriting guidance in SOPs, COVID-19 specific underwriting guidance, and the rules about the Paycheck Protection Program (“PPP”). All of these circumstances impacted the availability of funding for franchisors and franchisees. Despite the uncertainties about the economy and trend towards more conservative lending, the good news is that banks are still issuing useful loans. In this webinar, Geoff and Sherri Seiber, the CEO and COO of FranFund, the leading full service franchise funding solution, discuss Small Business Administration (SBA) loan options for franchisees, analyze changes in the lending environment in 2020, and provide advice to franchisors about building their financial toolkits.

The SBA loans most frequently utilized by franchisees are the SBA 7A standard loan (for amounts more than $350,000) and the SBA 7A small loans (for amounts less than $350,000). The SBA also offers special working capital loans that are particularly beneficial to businesses. In the webinar, Geoff and Sherri outline the more specific eligibility requirements and considerations for these SBA loan products. By understanding these programs, franchisors can be a resource for prospective franchisees, which in turn helps the franchise system to grow and new units to open more rapidly.

Some of the important takeaways from the discussion of these loans include:

  • The importance of post-closing liquidity;
  • Unique changes in the working capital loan requirements;
  • The pros and cons of the Rollovers for Business Start-Ups (ROBS) option, which can be used as an alternative to a loan or to generate extra liquidity to qualify for a loan; and
  • The importance of gaining meaningful pre-approval (which often requires more than a local bank’s review).

Another critical takeaway for franchisors is that a successful financial toolkit includes strong relationships with not only accountants and lawyers, but also bankers. Franchisors (and by extension their franchisees) who had strong working relationships with a bank had an advantage in the pandemic lending environment and will continue to do so. Knowing the bank and interacting with trusted bankers helps franchisors meet their goals and needs.

Photo of Ritchie Taylor, CFE Ritchie Taylor, CFE

Ritchie founded and leads the firm’s franchise practice where for 20 years he has served as the primary franchise counsel to hundreds of franchisors, franchisees, and dealer networks in their franchise and business matters. He has decades of experience helping domestic and international…

Ritchie founded and leads the firm’s franchise practice where for 20 years he has served as the primary franchise counsel to hundreds of franchisors, franchisees, and dealer networks in their franchise and business matters. He has decades of experience helping domestic and international franchisors design and grow their franchise systems with innovative, but compliant, franchise disclosure documents, franchise agreements, area development agreements, and master franchise agreements.  Ritchie’s clients benefit from his wealth of experience representing both sector leading franchisors as well as innovating emerging concepts.  He has substantial experience representing franchise systems operating in the hospitality, restaurant, retail, and home services industries.

As the leader of the largest franchise law practice in the Carolinas, Ritchie represents franchisor clients as their strategic advisor through all phases of growing and protecting their brand including franchise compliance, advertising fund administration, and state enforcement actions.

Ritchie guides franchise clients through mission-critical transactions including equity and debt transactions as well as mergers and acquisitions. He has served as the member of deal teams conducting merger, acquisition, and joint venture transactions in almost all 50 states and internationally, with aggregate transaction value exceeding $3 billion.  Private equity funds retain him to both advise them on franchise due diligence during a transaction and to represent their franchisor portfolio companies post-transaction.

Ritchie is a recognized thought leader in franchising across the Carolinas and nationally. He supports franchising through his active involvement in the International Franchise Association (“IFA”) as a long-time member of the IFA Membership and Legal/Legislative Committees. Ritchie also serves on the IFA Supplier Forum’s Board of Directors and as a member of the IFA’s Emerging Franchisor Task Force. Additionally, he is the first North Carolina attorney to receive the Certified Franchise Executive (“CFE”) designation awarded by the Institute of Certified Franchise Executives (“ICFE”). For the last 6 years, Ritchie served on the ICFE’s Board of Governors, which develops the CFE curriculum as the premier training program for franchise executives. He recently acted as the Facilitator for the Franchise M&A:  Trends, Tensions, & Transformation discussion at the 2026 IFA Legal Sympoisum.

He is a member of the North Carolina Bar Association Business Law Section Council and is the founding chair of the North Carolina Bar Association Committee on Franchising. For the last decade, Ritchie has been the course planner and taught continuing education programs on franchise law for other North Carolina attorneys.  Ritchie’s peers chose him as the first North Carolina attorney ever listed in both Super Lawyers and The Best Lawyers in America for his work in franchise law.

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