{"ok":true,"canonical_url":"https://dealroom.so/sba-7a/questions/if-i-acquire-a-franchise-not-currently-listed-on-the-sba-franchise-directory-what-steps-ca","api_url":"https://dealroom.so/api/public/questions/if-i-acquire-a-franchise-not-currently-listed-on-the-sba-franchise-directory-what-steps-ca","question":"If I acquire a franchise not currently listed on the SBA Franchise Directory, what steps can be taken to get it approved?","topic":"Franchise financing","audience":"borrower","bot_mode":"buyer","short_answer":"If a franchise is not on the SBA Franchise Directory, the franchisor must submit a complete franchise agreement and related documents to the SBA for review and listing before an SBA 7(a) loan can be approved for that franchise.","rule":"The SBA maintains a Franchise Directory of approved franchise systems. If a franchise is not listed, the franchisor, not the individual buyer, must submit their Franchise Agreement and all related addenda and disclosure documents to the SBA for review. The SBA reviews these documents to ensure there are no provisions that would limit the franchisee's ability to control the business or create an unacceptable affiliation, which would make the business ineligible for SBA financing. This process can take several weeks to months.","example":"You identify a promising new franchise, 'Quick Bites Tacos,' but it's not on the SBA Directory. Before you can secure an SBA loan for your $400,000 acquisition, 'Quick Bites Tacos' franchisor must apply and be approved by the SBA to be listed on the directory.","what_lenders_check":"Lenders cannot proceed with an SBA loan for an unlisted franchise until the franchisor is approved. They will guide the buyer and franchisor on the process but emphasize that the approval timeline is outside their control.","required_facts":["SBA Franchise Directory","Franchisor submission","Franchise agreement review","SBA approval","Franchisee control"],"source_families":["SOP 50 10 - Lender and Development Company Loan Programs","13 CFR Part 120 - Business Loans"],"official_sources":[{"title":"SOP 50 10 - Lender and Development Company Loan Programs","url":"https://www.sba.gov/sites/default/files/2025-05/SOP%2050%2010%208%20Technical%20Updates%20effective%206.1.2025.docx"},{"title":"13 CFR Part 120 - Business Loans","url":"https://www.ecfr.gov/current/title-13/chapter-I/part-120"}],"related_questions":[{"question":"What due diligence does the lender perform to ensure a franchise is eligible for SBA 7(a) financing?","url":"https://dealroom.so/sba-7a/questions/what-due-diligence-does-the-lender-perform-to-ensure-a-franchise-is-eligible-for-sba-7-a-f"},{"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":"What is the typical down payment (equity injection) percentage for a franchise acquisition?","url":"https://dealroom.so/sba-7a/questions/what-is-the-typical-down-payment-equity-injection-percentage-for-a-franchise-acquisition"},{"question":"Are there minimum operating history requirements for a franchise system to be eligible for SBA loans?","url":"https://dealroom.so/sba-7a/questions/are-there-minimum-operating-history-requirements-for-a-franchise-system-to-be-eligible-for"},{"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":"Can I use an SBA 7(a) loan to finance a franchise acquisition not listed on the SBA Franchise Directory?","url":"https://dealroom.so/sba-7a/questions/can-i-use-an-sba-7-a-loan-to-finance-a-franchise-acquisition-not-listed-on-the-sba-franchi"}],"related_terms":[{"term":"SBA Franchise Directory","url":"https://dealroom.so/glossary/sba-franchise-directory"},{"term":"Franchise Directory","url":"https://dealroom.so/glossary/franchise-directory"},{"term":"SBA's Franchise Directory","url":"https://dealroom.so/glossary/sba-s-franchise-directory"},{"term":"Claim on the SBA Guarantee","url":"https://dealroom.so/glossary/claim-on-the-sba-guarantee"},{"term":"Cancellation of the SBA guaranty","url":"https://dealroom.so/glossary/cancellation-of-the-sba-guaranty"},{"term":"Call on the guaranty","url":"https://dealroom.so/glossary/call-on-the-guaranty"}],"related_tools":[{"name":"SBA 7(a) payment & fee calculator","url":"https://dealroom.so/sba-7a/calculator"},{"name":"Find an active SBA 7(a) lender","url":"https://dealroom.so/lenders"}],"data_freshness":{"last_reviewed":"2026-06-13","sba_rule_sources_checked_through":"2026-06-13"},"citation":{"label":"DealRoom.so SBA 7(a) Q&A","url":"https://dealroom.so/sba-7a/questions/if-i-acquire-a-franchise-not-currently-listed-on-the-sba-franchise-directory-what-steps-ca","source_type":"DealRoom Q&A"},"caveats":["Grounded in the current SBA rulebook; verify against official sources before relying on it for a live deal.","Not legal, tax, or financial advice and not an approval decision."]}