{"ok":true,"canonical_url":"https://dealroom.so/glossary/sub-franchise-agreement","api_url":"https://dealroom.so/api/public/glossary/sub-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":"sub-franchise-agreement","term":"Sub-franchise agreement","group":"People and paperwork","definition":"This is the contract between a sub-franchisor and an individual franchisee, outlining the terms for operating a single franchised unit. If you're buying a sub-franchisor, you need to understand these agreements as they govern your relationship with your franchisees.","what_it_means":"For a sub-franchisor acquisition, these agreements represent your revenue stream and obligations to your franchisees. Review them to understand fees, support requirements, and compliance. Ensure they align with the broader master franchise agreement.","url":"https://dealroom.so/glossary/sub-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":"master-franchise-agreement","term":"Master franchise agreement","url":"https://dealroom.so/glossary/master-franchise-agreement"},{"slug":"franchise-agreement","term":"Franchise agreement","url":"https://dealroom.so/glossary/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":"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-"},{"question":"What process must a lender follow if a franchise applicant's agreement is not listed on the SBA Franchise Directory?","url":"https://dealroom.so/for-lenders/questions/what-process-must-a-lender-follow-if-a-franchise-applicant-s-agreement-is-not-listed-on-th"}]},"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 — Sub-franchise agreement","url":"https://dealroom.so/glossary/sub-franchise-agreement","source_type":"DealRoom Data"}}