{"ok":true,"canonical_url":"https://dealroom.so/for-lenders/questions/what-documentation-is-required-from-a-franchisor-for-an-unlisted-franchise-to-be-reviewed-","api_url":"https://dealroom.so/api/public/questions/what-documentation-is-required-from-a-franchisor-for-an-unlisted-franchise-to-be-reviewed-","question":"What documentation is required from a franchisor for an unlisted franchise to be reviewed for 7(a) eligibility?","topic":"Franchise eligibility","audience":"lender","bot_mode":"lender","short_answer":"For an unlisted franchise, the lender must submit a complete copy of the signed franchise agreement, including all exhibits and amendments, to the SBA for eligibility review.","rule":"If a franchise system is not listed on the SBA Franchise Directory, the lender must submit the franchise agreement and all related documents for a 'franchise eligibility review' by the SBA. This review assesses whether the agreement contains clauses that would give the franchisor undue control over the franchisee, violate the 'size' rule, or otherwise make the franchisee ineligible for an SBA loan. The SBA will then determine if the franchise system is eligible.","example":"A borrower wants to acquire a franchise that is not on the SBA directory. The lender collects the full, signed franchise disclosure document (FDD) and the entire franchise agreement with all its attachments. This comprehensive package is then submitted to the SBA for an eligibility determination.","what_lenders_check":"Lenders should guide borrowers to select franchises already on the directory. For unlisted franchises, the lender must ensure all necessary documentation is complete and accurate before submission to avoid delays. An adverse SBA determination on franchise eligibility will halt the loan process.","required_facts":["Franchise Directory status","Signed franchise agreement","Franchise disclosure document (FDD)","All exhibits and amendments","SBA eligibility review"],"source_families":["SOP 50 10 - Lender and Development Company Loan Programs","7(a) Loan Program Terms, Conditions, and Eligibility"],"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":"7(a) Loan Program Terms, Conditions, and Eligibility","url":"https://www.sba.gov/partners/lenders/7a-loan-program/terms-conditions-eligibility"}],"related_questions":[{"question":"What are the specific criteria for a new franchise model to be included on the SBA Franchise Directory?","url":"https://dealroom.so/for-lenders/questions/what-are-the-specific-criteria-for-a-new-franchise-model-to-be-included-on-the-sba-franchi"},{"question":"How does a lender determine if a franchise agreement contains impermissible control provisions not listed on the Directory?","url":"https://dealroom.so/for-lenders/questions/how-does-a-lender-determine-if-a-franchise-agreement-contains-impermissible-control-provis"},{"question":"What are the specific requirements for a lender to obtain an approved franchise agreement for a 7(a) loan when the franchise is not listed on the SBA Franchise Directory?","url":"https://dealroom.so/for-lenders/questions/what-are-the-specific-requirements-for-a-lender-to-obtain-an-approved-franchise-agreement-"},{"question":"Which specific provisions in a franchise agreement raise red flags for undue franchisor control, making it ineligible for a 7(a) loan?","url":"https://dealroom.so/for-lenders/questions/which-specific-provisions-in-a-franchise-agreement-raise-red-flags-for-undue-franchisor-co"},{"question":"Can an existing franchise location that is not currently listed on the SBA Franchise Directory be eligible for a 7(a) loan?","url":"https://dealroom.so/for-lenders/questions/can-an-existing-franchise-location-that-is-not-currently-listed-on-the-sba-franchise-direc"},{"question":"How does the SBA determine if a franchise agreement grants the franchisor 'undue control' over the franchisee, impacting 7(a) eligibility?","url":"https://dealroom.so/for-lenders/questions/how-does-the-sba-determine-if-a-franchise-agreement-grants-the-franchisor-undue-control-ov"}],"related_terms":[{"term":"Unlisted Franchise Agreement","url":"https://dealroom.so/glossary/unlisted-franchise-agreement"},{"term":"7(a) loan","url":"https://dealroom.so/glossary/7a-loan"},{"term":"SBA 7(a) program","url":"https://dealroom.so/glossary/sba-7-a-program"},{"term":"Standard 7(a) loan","url":"https://dealroom.so/glossary/standard-7-a-loan"},{"term":"SBA 7(a) loan","url":"https://dealroom.so/glossary/sba-7-a-loan"},{"term":"7(a) Small Loan","url":"https://dealroom.so/glossary/7-a-small-loan"}],"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/for-lenders/questions/what-documentation-is-required-from-a-franchisor-for-an-unlisted-franchise-to-be-reviewed-","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."]}