{"ok":true,"canonical_url":"https://dealroom.so/glossary/franchise-transfer-fee","api_url":"https://dealroom.so/api/public/glossary/franchise-transfer-fee","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-transfer-fee","term":"Franchise Transfer Fee","group":"Doing the deal","definition":"A fee charged by the franchisor when an existing franchise is sold from one franchisee to another. This is an unavoidable cost in franchise resales.","what_it_means":"If you're buying an existing franchise, the franchisor will likely charge a transfer fee to cover administrative costs and new franchisee training. This fee is part of your total project costs and should be factored into your deal budget. Confirm the exact amount with the franchisor early in the process.","url":"https://dealroom.so/glossary/franchise-transfer-fee","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":"total-project-costs","term":"Total project costs","url":"https://dealroom.so/glossary/total-project-costs"},{"slug":"due-diligence","term":"Due diligence","url":"https://dealroom.so/glossary/due-diligence"},{"slug":"franchise-agreement","term":"Franchise agreement","url":"https://dealroom.so/glossary/franchise-agreement"}],"related_questions":[{"question":"Can an SBA 7(a) loan cover the cost of a franchise transfer fee in an acquisition?","url":"https://dealroom.so/sba-7a/questions/can-an-sba-7-a-loan-cover-the-cost-of-a-franchise-transfer-fee-in-an-acquisition"},{"question":"How does the SBA review franchise agreements for compliance if there are unusual clauses regarding termination or transfer?","url":"https://dealroom.so/sba-7a/questions/how-does-the-sba-review-franchise-agreements-for-compliance-if-there-are-unusual-clauses-r"},{"question":"Can I use an SBA 7(a) loan to finance a franchise fee for an existing franchise location?","url":"https://dealroom.so/sba-7a/questions/can-i-use-an-sba-7-a-loan-to-finance-a-franchise-fee-for-an-existing-franchise-location"},{"question":"Can an SBA 7(a) loan finance the cost of a franchise fee for a new or existing franchise?","url":"https://dealroom.so/sba-7a/questions/can-an-sba-7-a-loan-finance-the-cost-of-a-franchise-fee-for-a-new-or-existing-franchise"},{"question":"Can I use an SBA loan to acquire a non-SBA approved franchise if I pay the franchise fee myself?","url":"https://dealroom.so/sba-7a/questions/can-i-use-an-sba-loan-to-acquire-a-non-sba-approved-franchise-if-i-pay-the-franchise-fee-m"},{"question":"Does an SBA 7(a) loan cover the initial franchise fee and associated startup costs?","url":"https://dealroom.so/sba-7a/questions/does-an-sba-7-a-loan-cover-the-initial-franchise-fee-and-associated-startup-costs"}]},"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 Transfer Fee","url":"https://dealroom.so/glossary/franchise-transfer-fee","source_type":"DealRoom Data"}}