{"ok":true,"canonical_url":"https://dealroom.so/sba-7a/questions/if-i-acquire-a-franchise-that-is-not-currently-on-the-sba-franchise-directory-can-it-still","api_url":"https://dealroom.so/api/public/questions/if-i-acquire-a-franchise-that-is-not-currently-on-the-sba-franchise-directory-can-it-still","question":"If I acquire a franchise that is not currently on the SBA Franchise Directory, can it still be financed?","topic":"Non-Listed Franchise","audience":"borrower","bot_mode":"buyer","short_answer":"Yes, an SBA 7(a) loan can still finance the acquisition of a franchise not listed on the SBA Franchise Directory, but it will require additional review and a Franchise Addendum.","rule":"For a franchise not on the SBA Franchise Directory, the lender must submit the franchise agreement and all related documents directly to the SBA for review and approval. The SBA will then determine if the agreement meets their eligibility requirements, often requiring a \"Franchise Addendum\" to resolve any problematic clauses.","example":"If you're buying a popular regional franchise not on the list, your lender will send the franchise agreement to the SBA. The SBA might identify a clause, like a franchisor's unilateral right to terminate without cause, requiring an addendum to comply with SBA rules.","what_lenders_check":"Lenders are cautious with non-listed franchises because of the potential for ineligible terms in the franchise agreement. They need assurance that the SBA will guarantee the loan, which hinges on the franchise agreement's compliance with SBA requirements.","required_facts":["Franchise directory","Franchise agreement","SBA review","Franchise Addendum"],"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":[],"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":"Call on the guaranty","url":"https://dealroom.so/glossary/call-on-the-guaranty"},{"term":"SBA Franchise Team","url":"https://dealroom.so/glossary/sba-franchise-team"}],"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-that-is-not-currently-on-the-sba-franchise-directory-can-it-still","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."]}