{"ok":true,"canonical_url":"https://dealroom.so/glossary/absolute-right-of-first-refusal","api_url":"https://dealroom.so/api/public/glossary/absolute-right-of-first-refusal","data_freshness":{"sba_records_through":"2026-05-31","fdic_records_through":"2026-03-31","dealroom_last_updated":"2026-06-15","timezone":"America/Chicago"},"source_summary":["Public SBA 7(a) loan records","FDIC institution data","DealRoom lender and franchise enrichment"],"term":{"slug":"absolute-right-of-first-refusal","term":"Absolute Right of First Refusal","group":"Doing the deal","definition":"This is a contractual right giving a party the first chance to buy an asset or business if it's offered for sale, usually on the same terms as another bona fide offer. It can complicate or block your acquisition.","what_it_means":"If a third party, like a landlord or a co-owner, holds an absolute right of first refusal, they can step in and buy the business out from under your deal. You must identify any such rights early in due diligence and ensure they are properly waived or exercised before you commit significant resources to an acquisition.","url":"https://dealroom.so/glossary/absolute-right-of-first-refusal","official_sources":[],"related":[{"slug":"due-diligence","term":"Due diligence","url":"https://dealroom.so/glossary/due-diligence"},{"slug":"loi","term":"LOI","url":"https://dealroom.so/glossary/loi"},{"slug":"lease-agreement","term":"Lease agreement","url":"https://dealroom.so/glossary/lease-agreement"},{"slug":"contract","term":"Contract","url":"https://dealroom.so/glossary/contract"}],"related_questions":[{"question":"Will the seller's refusal to provide certain financial documents jeopardize my SBA loan approval?","url":"https://dealroom.so/sba-7a/questions/will-the-seller-s-refusal-to-provide-certain-financial-documents-jeopardize-my-sba-loan-ap"},{"question":"What are the typical interest rates for an SBA 7(a) loan right now?","url":"https://dealroom.so/sba-loans/basics/what-are-the-typical-interest-rates-for-an-sba-7-a-loan-right-now"},{"question":"If I inherit funds right before closing, can they count towards my equity injection?","url":"https://dealroom.so/sba-7a/questions/if-i-inherit-funds-right-before-closing-can-they-count-towards-my-equity-injection"},{"question":"What is the absolute maximum dollar amount available for an SBA 7(a) loan?","url":"https://dealroom.so/sba-loans/basics/what-is-the-absolute-maximum-dollar-amount-available-for-an-sba-7-a-loan"},{"question":"What is the absolute highest amount an SBA 7(a) loan can be for?","url":"https://dealroom.so/sba-loans/basics/what-is-the-absolute-highest-amount-an-sba-7-a-loan-can-be-for"},{"question":"What if the seller of the business insists on receiving a portion of their note repayment within the first year?","url":"https://dealroom.so/sba-7a/questions/what-if-the-seller-of-the-business-insists-on-receiving-a-portion-of-their-note-repayment-"}]},"caveats":["Definitions represent DealRoom's plain-English interpretation for buyers; verify regulatory terms against the official SBA and eCFR sources listed.","Not legal, tax, or financial advice, and not an SBA eligibility determination."],"citation":{"label":"DealRoom.so Glossary — Absolute Right of First Refusal","url":"https://dealroom.so/glossary/absolute-right-of-first-refusal","source_type":"DealRoom Data"}}