Sba Form 2462 - Addendum To Franchise Agreement printable pdf download

SOP 50 10 5(I)

Appendix 9

ADDENDUM TO FRANCHISE AGREEMENT

(SBA Form 2462)

THIS ADDENDUM (“Addendum”) is made and entered into on

, 20

, by and

(“Franchisor”), located at

between

, and

(“Franchisee”), located at

_________________.

Franchisor and Franchisee entered into a Franchise Agreement on

, 20

, (such

Agreement, together with any amendments, the “Franchise Agreement”). Franchisee is applying for a loan

(“Loan”) from a lender in which funding is provided with the assistance of the U. S. Small Business

Administration (“SBA”). SBA requires the execution of this Addendum as a condition for obtaining the

SBA-assisted financing.

In consideration of the mutual promises below and for good and valuable consideration, the receipt and

sufficiency of which the parties acknowledge, the parties agree that notwithstanding any other terms in the

Franchise Agreement:

CHANGE OF OWNERSHIP

•

If Franchisee is proposing to transfer a partial interest in Franchisee and Franchisor has an

option to purchase or a right of first refusal with respect to that partial interest, Franchisor

may exercise such option or right only if the proposed transferee is not a current owner or

family member of a current owner of Franchisee. If the Franchisor’s consent is required for

any transfer (full or partial), Franchisor will not unreasonably withhold such consent. In the

event of an approved transfer of the franchise interest or any portion thereof, the transferor

will not be liable for the actions of the transferee franchisee.

FORCED SALE OF ASSETS

•

If Franchisor has the option to purchase the business personal assets upon default or

termination of the Franchise Agreement and the parties are unable to agree on the value of

the assets, the value will be determined by an appraiser chosen by both parties. If the

Franchisee owns the real estate where the franchise location is operating, Franchisee will not

be required to sell the real estate upon default or termination, but Franchisee may be required

to lease the real estate for the remainder of the franchise term (excluding additional

renewals) for fair market value.

COVENANTS

•

If the Franchisee owns the real estate where the franchise location is operating, Franchisor

may not record against the real estate any restrictions on the use of the property, including

any restrictive covenants, branding covenants or environmental use restrictions.

Effective Date: January 1, 2017

Sba Form 2462 - Addendum To Franchise Agreement

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