{"ok":true,"canonical_url":"https://dealroom.so/glossary/franchised-business","api_url":"https://dealroom.so/api/public/glossary/franchised-business","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":"franchised-business","term":"Franchised Business","aka":"Franchise","group":"Reading the business","definition":"This is a business operating under a license from a larger company (the franchisor), using their brand, system, and support. Franchises have specific rules you must follow.","what_it_means":"SBA has specific eligibility requirements for franchised businesses. Lenders will check the SBA Franchise Directory to ensure the franchise agreement is acceptable. You must understand the franchise agreement's terms, fees, and restrictions before committing to purchase.","url":"https://dealroom.so/glossary/franchised-business","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":"franchise-directory","term":"Franchise Directory","url":"https://dealroom.so/glossary/franchise-directory"},{"slug":"franchise-agreement","term":"Franchise agreement","url":"https://dealroom.so/glossary/franchise-agreement"},{"slug":"affiliation","term":"Affiliation","url":"https://dealroom.so/glossary/affiliation"}],"related_questions":[{"question":"What kind of due diligence is required for a franchised business acquisition with an SBA 7(a) loan?","url":"https://dealroom.so/sba-7a/questions/what-kind-of-due-diligence-is-required-for-a-franchised-business-acquisition-with-an-sba-7"},{"question":"Can I use an SBA 7(a) loan to purchase a franchised business with no prior experience in that specific franchise system?","url":"https://dealroom.so/sba-7a/questions/can-i-use-an-sba-7-a-loan-to-purchase-a-franchised-business-with-no-prior-experience-in-th"},{"question":"Does the Small Business Administration (SBA) ever directly lend money to small businesses?","url":"https://dealroom.so/sba-loans/basics/does-the-small-business-administration-sba-ever-directly-lend-money-to-small-businesses"},{"question":"What is the importance of a detailed business plan for an SBA 7(a) loan application, especially for new or acquiring businesses?","url":"https://dealroom.so/for-lenders/questions/what-is-the-importance-of-a-detailed-business-plan-for-an-sba-7-a-loan-application-especia"},{"question":"Are SBA 7(a) loans only for struggling businesses?","url":"https://dealroom.so/sba-loans/basics/are-sba-7-a-loans-only-for-struggling-businesses"},{"question":"Is the SBA 7(a) program widely used by small businesses?","url":"https://dealroom.so/sba-loans/basics/is-the-sba-7-a-program-widely-used-by-small-businesses"}]},"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 — Franchised Business","url":"https://dealroom.so/glossary/franchised-business","source_type":"DealRoom Data"}}