{"ok":true,"canonical_url":"https://dealroom.so/glossary/franchise-agreement","api_url":"https://dealroom.so/api/public/glossary/franchise-agreement","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":"franchise-agreement","term":"Franchise agreement","group":"People and paperwork","definition":"The legal contract outlining the terms and conditions between a franchisor and a franchisee, including rights, responsibilities, and fees. The SBA reviews this agreement carefully for eligibility.","what_it_means":"For an SBA loan, the franchise agreement must comply with SBA rules, particularly concerning the franchisor's control over the franchisee. The SBA generally requires the franchisor to be on its Franchise Directory or have an approved addendum, confirming the agreement doesn't violate SBA eligibility terms. Your lender will need to review it.","url":"https://dealroom.so/glossary/franchise-agreement","official_sources":[{"slug":"sop-50-10","title":"SOP 50 10 — Lender and Development Company Loan Programs","official_url":"https://www.sba.gov/document/sop-50-10-lender-development-company-loan-programs","official_label":"View on SBA.gov","authority_tier":2,"publisher":"U.S. Small Business Administration","source_guide_url":"https://dealroom.so/sba-7a/sources/sop-50-10"},{"slug":"13-cfr-part-120","title":"13 CFR Part 120 — Business Loans","official_url":"https://www.ecfr.gov/current/title-13/chapter-I/part-120","official_label":"View on eCFR","authority_tier":1,"publisher":"Office of the Federal Register","source_guide_url":"https://dealroom.so/sba-7a/sources/13-cfr-part-120"}],"related":[{"slug":"franchise","term":"Franchise","url":"https://dealroom.so/glossary/franchise"},{"slug":"affiliation","term":"Affiliation","url":"https://dealroom.so/glossary/affiliation"},{"slug":"franchise-directory","term":"Franchise Directory","url":"https://dealroom.so/glossary/franchise-directory"}],"related_questions":[{"question":"What if a franchise agreement is not listed on the SBA Franchise Directory?","url":"https://dealroom.so/for-lenders/questions/what-if-a-franchise-agreement-is-not-listed-on-the-sba-franchise-directory"},{"question":"What is required if a franchise agreement is not listed on the SBA Franchise Directory?","url":"https://dealroom.so/sba-7a/questions/what-is-required-if-a-franchise-agreement-is-not-listed-on-the-sba-franchise-directory"},{"question":"What specific provisions in a franchise agreement, if present, would render a franchise ineligible for 7(a) financing?","url":"https://dealroom.so/for-lenders/questions/what-specific-provisions-in-a-franchise-agreement-if-present-would-render-a-franchise-inel"},{"question":"What if a franchise system is not listed on the SBA Franchise Directory but the agreement is SBA-compliant?","url":"https://dealroom.so/for-lenders/questions/what-if-a-franchise-system-is-not-listed-on-the-sba-franchise-directory-but-the-agreement-"},{"question":"What process must a lender follow if a franchise applicant's agreement is not listed on the SBA Franchise Directory?","url":"https://dealroom.so/for-lenders/questions/what-process-must-a-lender-follow-if-a-franchise-applicant-s-agreement-is-not-listed-on-th"},{"question":"What if a franchise agreement contains provisions for indemnification that concern the SBA?","url":"https://dealroom.so/for-lenders/questions/what-if-a-franchise-agreement-contains-provisions-for-indemnification-that-concern-the-sba"}]},"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 — Franchise agreement","url":"https://dealroom.so/glossary/franchise-agreement","source_type":"DealRoom Data"}}