Franchising is a very popular way to own a business: a Census Bureau report indicates that nearly half a million American businesses are franchises. But when it comes to obtaining veteran-owned small business and service-disabled veteran-owned small business certifications, the SBA’s message to franchises is the same one Mr. McGee delivered to Prince: “we don’t like your kind.”
As a recent decision by the SBA Office of Hearings and Appeals demonstrates, the SBA has made it next-to-impossible for franchises to obtain VOSB and SDVOSB certifications. The reason has nothing to do with franchises being a bit too leisurely, and everything to do with the SBA’s ultra-strict requirements when it comes to control of VOSBs and SDVOSBs. More
