:: Please Note ::

This franchise is not being offered to residents of the following states: MD, NV, IL, IN, MI, WI, MN, ND, SD, NE, UT, CA, HI & WA.

This offer is not directed to any person in the states listed above by or on behalf of the franchisor or anyone acting with the franchisor’s knowledge. No franchises can be sold in the states listed above until the offering has been registered and declared effective by the appropriate regulatory authority and the uniform franchise offering circular has been delivered to the offeree before the sale within the applicable time frame. This franchise is offered only by delivery of a franchise offering circular.

If you are a resident of any of the states listed above, we hope that you will be patient and continue to be as interested in our company as we are interested in further dialogue with you.

[ Franchise Information Form ]

JamSpot Franchise Agreement Pre-Approved by SBA

Opens the door for expedited loan processing

Jamspot is very proud to announce that it has been approved by the United States Small Business Administration for inclusion in the SBA's Franchise Registry. The Franchise Registry is a national listing of franchise systems whose franchise agreements have been pre-approved by the SBA, and whose franchisees can receive expedited loan processing when applying for SBA financial assistance.

The SBA Approval Process (as quoted from the SBA's Franchise registry webpage at www.franchiseregistry.com):

Since by law SBA can only lend to small businesses, it must verify that its borrowers are small businesses and will use the loan proceeds appropriately. SBA or one of its participating lenders has always reviewed relevant franchise documents whenever a franchisee seeks an SBA loan. The franchisor cannot exert so much control over the franchisee’s daily operations and profits that it becomes the real owner of the business.

As the number of franchisees seeking SBA loans has grown, the burden of managing SBA’s review process has increased. Without centralized review, this can lead to:

Inconsistent decisions – since a franchisor’s contracts can be submitted to any of 69 local offices, the same contract may be deemed eligible in one office and ineligible in another.
Excessively long processing time – with heavy volume, the review process can take weeks or even months; and
Failure to understand industry differences – SBA is aware of at least 30 main franchise industry groups and 211 subgroups. Some bear no resemblance to others from a financial or operational standpoint. Local SBA lenders or offices lack the resources to distinguish and react properly to so many different industry-specific situations.

The Franchise Registry attacks all of these problems. By centralizing the review process, SBA can ensure consistency, speed and sensitivity to industry-specific considerations.

The Franchise Registry Process

To take advantage of the Registry, franchisors complete a single worksheet for each of their programs. They certify that their franchise documents comply with SBA’s Eligibility Guidelines, and identify key provisions. The franchisor submits its completed worksheet to FRANdata (the Registry operator), along with an electronic copy of all agreements which franchisees must execute and an application fee. FRANdata reviews the worksheet and documents, and submits recommendations to an SBA Review Unit, which approves the documents or contacts the franchisor to resolve any outstanding issues.

Upon receipt of SBA Review determinations, FRANdata lists eligible systems on a public website, identifying the date of eligibility. FRANdata also loads a copy of the franchise system’s approved agreements on a private website, accessible only to SBA, SBA Participating Lenders and Certified Development Companies. The private site has search engines which allow registered users to find all contract provisions related to the eligibility guidelines.

Under this new system, once a franchise is centrally approved, there is no additional review. Prospective franchisees provide SBA lenders with a certification from the franchisor (or its counsel) stating that there have been no revisions to relevant provisions in the agreements a franchisee must sign since the agreements were deemed eligible by SBA.

The SBA lender relies on this certification and the website listing, without any further review or time delay. If the certification indicates there have been changes to relevant provisions of the agreements, FRANdata will review the changes and recommend whether the franchisor’s registration should continue. Of course, the lender must still independently review and approve other relevant financial and transactional information before making the loan.

For more infomation about the SBA Franchise Registry, please visit www.franchiseregistry.com.

For more information on how we can help you obtain expedited service when applying for SBA financing for your JamSpot franchise, please contact us using our Franchise Information Form or
call us at 1.617.666.PLAY