{"ok":true,"canonical_url":"https://dealroom.so/glossary/sub-franchisor","api_url":"https://dealroom.so/api/public/glossary/sub-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":"sub-franchisor","term":"Sub-franchisor","group":"People and paperwork","definition":"A sub-franchisor is a business that holds a master franchise agreement and has the right to sell individual franchises to others within a defined territory. Buying one means you're not just running a business, but also managing a network of other franchisees.","what_it_means":"When acquiring a sub-franchisor, you are buying a business that recruits and supports other franchisees. Your due diligence must focus on the health of the existing sub-franchises, the master franchise agreement terms, and the sub-franchisor's ability to attract new franchisees.","url":"https://dealroom.so/glossary/sub-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":"master-franchise-agreement","term":"Master franchise agreement","url":"https://dealroom.so/glossary/master-franchise-agreement"},{"slug":"sub-franchise-agreement","term":"Sub-franchise agreement","url":"https://dealroom.so/glossary/sub-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 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"}]},"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-franchisor","url":"https://dealroom.so/glossary/sub-franchisor","source_type":"DealRoom Data"}}