Syndicated Loans in Franchise Financing: Diligence Considerations, Negotiation Strategies, Key Loan Provisions
A live 90-minute premium CLE video webinar with interactive Q&A
This CLE webinar will discuss the unique considerations relating to syndicated loan transactions for businesses that own many franchise locations. The panel will address the typical negotiating points between franchise lenders and borrowers, franchise specific loan provisions, and the kind of diligence each side should expect with these types of transactions.
Outline
- Overview: syndicated loans and franchise businesses
- Franchisor/franchisee relationship
- Tri-party agreement: consent; no documents.
- Different types of real property structures: Is the property owned by the same entity as the operator, is it owned by an affiliate, or is it owned by a third party?
- Documents: mortgage, leasehold mortgage, estoppels, landlord lien waiver, etc.; UCC override provision
- New units
- Closed units
- Financial analysis: existing EBITDA, EBITDA addbacks, accounting for new builds, accounting for remodels, etc.
- Financial covenants
- Defaults
- Practitioner pointers
Benefits
The panel will discuss these and other key considerations:
- What are the typical negotiation points between franchise lenders and borrowers with syndicated loans?
- What are the key franchise specific loan provisions?
- What diligence exercises should franchise borrowers and lenders expect with a syndicated loan?
- What are key considerations when determining the structure of a franchise syndicated loan?
Faculty
Justin Riess
Partner
Haynes and Boone
Mr. Riess is the managing partner of Haynes Boone’s Charlotte office. His practice focuses on leveraged finance,... | Read More
Mr. Riess is the managing partner of Haynes Boone’s Charlotte office. His practice focuses on leveraged finance, specialty finance, private credit finance and syndicated lending. During his 21 years of practice, Mr. Riess has advised global financial institutions, corporate borrowers and private equity firms in syndicated lending transactions ranging from $50 million to $3 billion. He has experience in many industries including healthcare, franchise, defense and aerospace, food and beverage and financial services. In addition to corporate lending, Mr. Riess has represented banks and other lenders in loans to high-net-worth individuals. These individuals often have complex lending needs with collateral ranging from stock portfolios and real property to ownership interests in sports franchises, private planes and yachts. More recently, he has added experience in digital currency loans secured by specific mining equipment and various digital currencies.
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Erin Simmons
Partner
Haynes and Boone
Ms. Simmons has a broad lending practice representing banks, financial institutions, businesses, and private... | Read More
Ms. Simmons has a broad lending practice representing banks, financial institutions, businesses, and private equity sponsors in structuring and negotiating secured and unsecured loans, bilateral and syndicated loans, cash-flow loans, asset-based loans, reserve-based loans, leveraged loans, and subordinated debt. She has worked on transactions across a wide range of industries, including outdoor recreation, retail, food and beverage, manufacturing, equipment leasing, oil and gas, mining, energy, healthcare, logistics, construction, communications, transportation, and agriculture.
CloseEarly Discount (through 10/10/25)
