{"ok":true,"canonical_url":"https://dealroom.so/glossary/franchisor","api_url":"https://dealroom.so/api/public/glossary/franchisor","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":"franchisor","term":"Franchisor","group":"People and paperwork","definition":"The company that grants the right to operate a franchise business using its brand, system, and trademarks. You'll deal directly with them if you're buying a franchised business.","what_it_means":"If you're acquiring a franchised business, the franchisor must approve you as a new franchisee. Lenders require franchised businesses to be listed on the SBA Franchise Directory. Understand the franchise agreement and ongoing fees before committing to the purchase.","url":"https://dealroom.so/glossary/franchisor","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-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":"What if the franchisor requires specific operational changes that impact the business's profitability?","url":"https://dealroom.so/sba-7a/questions/what-if-the-franchisor-requires-specific-operational-changes-that-impact-the-business-s-pr"},{"question":"When does a franchisor's influence, even without ownership, trigger affiliation for the franchisee?","url":"https://dealroom.so/for-lenders/questions/when-does-a-franchisor-s-influence-even-without-ownership-trigger-affiliation-for-the-fran"},{"question":"What are the requirements for a franchisor to be listed on the SBA Franchise Directory?","url":"https://dealroom.so/sba-7a/questions/what-are-the-requirements-for-a-franchisor-to-be-listed-on-the-sba-franchise-directory"},{"question":"Does the franchisor's financial strength and stability impact my SBA 7(a) loan approval?","url":"https://dealroom.so/sba-7a/questions/does-the-franchisor-s-financial-strength-and-stability-impact-my-sba-7-a-loan-approval"},{"question":"How does the SBA evaluate a franchise agreement not on the directory for acceptable franchisor control provisions?","url":"https://dealroom.so/for-lenders/questions/how-does-the-sba-evaluate-a-franchise-agreement-not-on-the-directory-for-acceptable-franch"},{"question":"What issues in a franchise agreement typically lead to a determination of 'undue control' by the franchisor?","url":"https://dealroom.so/for-lenders/questions/what-issues-in-a-franchise-agreement-typically-lead-to-a-determination-of-undue-control-by"}]},"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 — Franchisor","url":"https://dealroom.so/glossary/franchisor","source_type":"DealRoom Data"}}