{"ok":true,"canonical_url":"https://dealroom.so/glossary/franchise-resale","api_url":"https://dealroom.so/api/public/glossary/franchise-resale","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-resale","term":"Franchise Resale","aka":"Existing franchise acquisition","group":"Doing the deal","definition":"A franchise resale is the acquisition of an existing franchised business from a current franchisee. This process involves approval from both the seller and the franchisor.","what_it_means":"When buying an existing franchise, you'll need to satisfy the franchisor's requirements for new franchisees, including their approval process and potentially attending training. Ensure the franchisor has approved the transfer of the franchise agreement to you before proceeding with loan closing.","url":"https://dealroom.so/glossary/franchise-resale","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"}],"related":[{"slug":"franchise","term":"Franchise","url":"https://dealroom.so/glossary/franchise"},{"slug":"franchise-agreement","term":"Franchise agreement","url":"https://dealroom.so/glossary/franchise-agreement"},{"slug":"franchise-directory","term":"Franchise Directory","url":"https://dealroom.so/glossary/franchise-directory"},{"slug":"affiliation","term":"Affiliation","url":"https://dealroom.so/glossary/affiliation"}],"related_questions":[{"question":"Can an SBA 7(a) loan finance a franchise resale where the current franchisee is selling the existing location?","url":"https://dealroom.so/sba-7a/questions/can-an-sba-7-a-loan-finance-a-franchise-resale-where-the-current-franchisee-is-selling-the"},{"question":"What if the primary business assets are specialized machinery with limited resale value?","url":"https://dealroom.so/sba-7a/questions/what-if-the-primary-business-assets-are-specialized-machinery-with-limited-resale-value"},{"question":"If I acquire a franchise, does the SBA approve the specific franchise location?","url":"https://dealroom.so/sba-7a/questions/if-i-acquire-a-franchise-does-the-sba-approve-the-specific-franchise-location"},{"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 due diligence is required for a franchise not on the SBA Franchise Directory?","url":"https://dealroom.so/sba-7a/questions/what-due-diligence-is-required-for-a-franchise-not-on-the-sba-franchise-directory"},{"question":"How does a lender confirm a franchise is listed on the SBA Franchise Directory?","url":"https://dealroom.so/for-lenders/questions/how-does-a-lender-confirm-a-franchise-is-listed-on-the-sba-franchise-directory"}]},"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 Resale","url":"https://dealroom.so/glossary/franchise-resale","source_type":"DealRoom Data"}}