{"ok":true,"canonical_url":"https://dealroom.so/glossary/transferability-clause","api_url":"https://dealroom.so/api/public/glossary/transferability-clause","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":"transferability-clause","term":"Transferability Clause","aka":"Assignment clause","group":"Doing the deal","definition":"A transferability clause dictates whether and how a contract, like a lease or franchise agreement, can be assigned to a new owner. This is crucial for seamless business transitions.","what_it_means":"You must review all key contracts for transferability clauses during due diligence, especially leases and major supplier agreements. If a contract requires seller consent for assignment, ensure this is secured before closing. A non-transferable key contract can derail your acquisition.","url":"https://dealroom.so/glossary/transferability-clause","official_sources":[],"related":[{"slug":"lease-agreement","term":"Lease agreement","url":"https://dealroom.so/glossary/lease-agreement"},{"slug":"franchise-agreement","term":"Franchise agreement","url":"https://dealroom.so/glossary/franchise-agreement"},{"slug":"due-diligence","term":"Due diligence","url":"https://dealroom.so/glossary/due-diligence"},{"slug":"asset-purchase","term":"Asset purchase","url":"https://dealroom.so/glossary/asset-purchase"}],"related_questions":[{"question":"What if a proposed franchise agreement includes a clause restricting the borrower's operational control or management?","url":"https://dealroom.so/for-lenders/questions/what-if-a-proposed-franchise-agreement-includes-a-clause-restricting-the-borrower-s-operat"},{"question":"Can a seller note on full standby have an acceleration clause if the business defaults on the SBA loan?","url":"https://dealroom.so/for-lenders/questions/can-a-seller-note-on-full-standby-have-an-acceleration-clause-if-the-business-defaults-on-"},{"question":"What specific franchise agreement clauses are generally unacceptable to the SBA and could prevent financing?","url":"https://dealroom.so/sba-7a/questions/what-specific-franchise-agreement-clauses-are-generally-unacceptable-to-the-sba-and-could-"},{"question":"How does the SBA review franchise agreements for compliance if there are unusual clauses regarding termination or transfer?","url":"https://dealroom.so/sba-7a/questions/how-does-the-sba-review-franchise-agreements-for-compliance-if-there-are-unusual-clauses-r"},{"question":"What specific types of clauses in a franchise agreement would constitute \"undue control\" by the franchisor, rendering it ineligible for 7(a) financing?","url":"https://dealroom.so/for-lenders/questions/what-specific-types-of-clauses-in-a-franchise-agreement-would-constitute-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 — Transferability Clause","url":"https://dealroom.so/glossary/transferability-clause","source_type":"DealRoom Data"}}