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Course Details

Course Information
  • smart_display Format

    Live Online with Live Q&A

  • signal_cellular_alt Difficulty Level

    Intermediate

  • work Practice Area

    Banking and Finance

Date & Time
  • event Date

    Wednesday, November 5, 2025

  • schedule Time

    1:00 p.m. ET./10:00 a.m. PT

  • timer Program Length

    90 minutes

Credit Information

  • This 90-minute webinar is eligible in most states for 1.5 CLE credits.


  • Live Online


    On Demand

$347.00

This course is $0 with these passes:

CLE
ALL

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.

Faculty

Justin Riess
Partner
Haynes & Boone LLP

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 & Boone LLP

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.

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Description

Large franchise businesses often use syndicated loans to finance major growth initiatives such as large-scale acquisitions, recapitalizations, or multi-unit expansions. A syndicated loan structure allows the borrower to access greater capital than a single lender could provide alone. For lenders, syndicated loans diversify their risk profile and help them maintain close relationships with their customers. Syndicated loans also benefit lenders because they allow them to remain within their credit exposure limits and each lender in the syndicate benefits financially from their participation by collecting pro-rata interest and fees.

While syndicated loans offer many advantages to both franchise borrowers and lenders, there are unique considerations and issues that counsel on both sides of the transaction must understand and navigate. For instance, with a syndicated franchise loan, both borrowers and lenders will need to consider the franchisor/franchisee relationship and the financial analysis will need to cover EBITDA, EBITDA addbacks, and account for new builds and remodels. A thorough analysis of the real property structures will also be required and the loan covenants will need to account for the unique circumstances relating to a franchise business.

Listen as our expert panel reviews the unique considerations of syndicated loans to large franchise businesses and provides guidance on navigating these complex transactions from the perspective of both borrowers and lenders.

Outline

I. Overview: syndicated loans and franchise businesses

II. Franchisor/franchisee relationship

III. Tri-party agreement: consent; no documents.

IV. 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?

V. Documents: mortgage, leasehold mortgage, estoppels, landlord lien waiver, etc.; UCC override provision

VI. New units

VII. Closed units

VIII. Financial analysis: existing EBITDA, EBITDA addbacks, accounting for new builds, accounting for remodels, etc.

IX. Financial covenants

X. Defaults

XI. 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?