Inclusion of VooDoo on SBA Franchise Registry increases access to financing
We got some very exciting news the other day: The U.S. Small Business Administration added us to its Franchise Registry. That opens up more avenues to financing for deserving entrepreneurs who want to open VooDoo BBQ locations but, like so many these days, are having trouble obtaining loans.
FRANdata, the franchise information firm that administers the registry, gave us the news Oct. 17. It was a great moment for us, since we’d gone through a painstaking approval process that lasted four months. But that’s as it should be. It was worth the effort to clear obstacles to financing for worthy entrepreneurs interested in VooDoo BBQ.
In our first few years after we started in 2002, our franchise owners tended to be pretty well financed, and it was a lot easier to secure a loan, so SBA-backed loans weren’t that big an issue for our franchise candidates. But since 2008, loans have been so hard to secure, we realized we needed to give more people who want to open VooDoo locations a fighting chance for the financing they need.
Bottom line: This will give entrepreneurs a much better chance at loans that can help them start their businesses.
The SBA created the Franchise Registry in 1998 to streamline the process banks use to determine franchisees’ eligibility for SBA loans. When the agency approves a franchise system for inclusion, it agrees to guarantee 75 to 85 percent of any loan to franchise candidates, reducing the risk to banks and increasing the likelihood of approval.
Before approving franchisors for inclusion, the agency must sign off on their disclosure documents to ensure they meet SBA standards for size and franchise owner independence. The review allows banks to skip several steps in the approval process, saving them time and energy. The registry includes about 1,600 franchise systems, including food franchising giants such as A&W, Denny’s, Pizza Hut and Haagen-Dazs.
And we’re proud and happy to be one of them. VooDoo BBQ is one of the hottest brands in food franchising because it’s meeting the demand for great food in a fast-casual setting, served with the flavor and cachet you can find only in the Crescent City.
If you’re a hard worker with solid business skills, a love of people and great food and a desire to join a growing food franchise with limitless opportunity, there’s never been a better time to join the VooDat Nation. Fill out the form on our site and download our detailed franchise report, then let’s start talking!