{"ok":true,"canonical_url":"https://dealroom.so/glossary/master-franchise-agreement","api_url":"https://dealroom.so/api/public/glossary/master-franchise-agreement","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":"master-franchise-agreement","term":"Master franchise agreement","group":"People and paperwork","definition":"This is a contract where a franchisor grants a \"master franchisee\" the right to develop and sub-franchise within a specific territory. If you're buying a sub-franchisor, this agreement defines your entire business model.","what_it_means":"If the business you're buying is a sub-franchisor, you'll inherit this agreement. Thoroughly review its terms, including territory rights, development obligations, and your ability to sell sub-franchises. This document dictates your future operations and revenue streams.","url":"https://dealroom.so/glossary/master-franchise-agreement","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":"sub-franchisor","term":"Sub-franchisor","url":"https://dealroom.so/glossary/sub-franchisor"},{"slug":"franchise-agreement","term":"Franchise agreement","url":"https://dealroom.so/glossary/franchise-agreement"},{"slug":"sub-franchise-agreement","term":"Sub-franchise agreement","url":"https://dealroom.so/glossary/sub-franchise-agreement"}],"related_questions":[{"question":"How does the SBA evaluate a master franchise agreement for 7(a) loan eligibility if the borrower is a sub-franchisor?","url":"https://dealroom.so/for-lenders/questions/how-does-the-sba-evaluate-a-master-franchise-agreement-for-7-a-loan-eligibility-if-the-bor"},{"question":"Can an SBA 7(a) loan finance the purchase of a master franchise or multiple franchise units?","url":"https://dealroom.so/sba-7a/questions/can-an-sba-7-a-loan-finance-the-purchase-of-a-master-franchise-or-multiple-franchise-units"},{"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-"}]},"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 — Master franchise agreement","url":"https://dealroom.so/glossary/master-franchise-agreement","source_type":"DealRoom Data"}}