{"ok":true,"canonical_url":"https://dealroom.so/glossary/franchise-agreement-addendum","api_url":"https://dealroom.so/api/public/glossary/franchise-agreement-addendum","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-addendum","term":"Franchise Agreement Addendum","group":"People and paperwork","definition":"A required document for SBA loans, signed by the franchisor, that modifies certain terms of an existing franchise agreement to comply with SBA eligibility rules.","what_it_means":"For SBA financing, your lender will require a specific addendum that ensures the franchisor does not have \"negative control\" over the franchisee's operations. This addendum must be signed by the franchisor before loan approval if the franchise is not already on the SBA Franchise Directory or requires clarification.","url":"https://dealroom.so/glossary/franchise-agreement-addendum","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-agreement","term":"Franchise agreement","url":"https://dealroom.so/glossary/franchise-agreement"},{"slug":"unlisted-franchise-agreement","term":"Unlisted Franchise Agreement","url":"https://dealroom.so/glossary/unlisted-franchise-agreement"},{"slug":"franchise-directory","term":"Franchise Directory","url":"https://dealroom.so/glossary/franchise-directory"},{"slug":"negative-control","term":"Negative control","url":"https://dealroom.so/glossary/negative-control"}],"related_questions":[{"question":"If a franchise agreement is listed on the SBA Franchise Directory but has an addendum or rider, how does a lender assess its eligibility?","url":"https://dealroom.so/for-lenders/questions/if-a-franchise-agreement-is-listed-on-the-sba-franchise-directory-but-has-an-addendum-or-r"},{"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"}]},"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 Addendum","url":"https://dealroom.so/glossary/franchise-agreement-addendum","source_type":"DealRoom Data"}}