{"ok":true,"canonical_url":"https://dealroom.so/sba-7a/questions/what-if-the-franchise-i-want-to-acquire-is-a-recognized-brand-but-not-listed-on-the-sba-fr","api_url":"https://dealroom.so/api/public/questions/what-if-the-franchise-i-want-to-acquire-is-a-recognized-brand-but-not-listed-on-the-sba-fr","question":"What if the franchise I want to acquire is a recognized brand but not listed on the SBA Franchise Directory?","topic":"Franchise financing","audience":"borrower","bot_mode":"buyer","short_answer":"If a franchise is not on the SBA Franchise Directory, the lender must submit the franchise agreement for SBA review and approval.","rule":"The SBA maintains a Franchise Directory of approved franchise systems. If a franchise is not listed, the lender must submit a copy of the entire franchise agreement, including all exhibits and amendments, to the SBA for a review of its eligibility. The SBA will analyze the agreement to ensure it meets its lending criteria, particularly regarding the franchisor's control over the franchisee and potential affiliation issues.","example":"A buyer wants to acquire a coffee shop franchise that is a well-known brand but not on the directory. The lender submits the full franchise agreement to the SBA. The SBA reviews it and determines it meets eligibility requirements, allowing the loan to proceed, or identifies issues that require amendments.","what_lenders_check":"Lenders prefer franchises on the directory for streamlined processing. For unlisted franchises, they must carefully review the agreement for problematic clauses (e.g., franchisor's undue control, unreasonable termination clauses) that could jeopardize SBA eligibility or the business's viability.","required_facts":["Not on SBA directory","Franchise agreement review","SBA eligibility criteria","Franchisor control"],"source_families":["SOP 50 10 - Lender and Development Company Loan Programs","13 CFR Part 120 - Business Loans","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":"13 CFR Part 120 - Business Loans","url":"https://www.ecfr.gov/current/title-13/chapter-I/part-120"},{"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 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":"Call on the guaranty","url":"https://dealroom.so/glossary/call-on-the-guaranty"},{"term":"Repair to the guaranty","url":"https://dealroom.so/glossary/repair-to-the-guaranty"},{"term":"Brand Standard","url":"https://dealroom.so/glossary/brand-standard"},{"term":"Brand Equity","url":"https://dealroom.so/glossary/brand-equity"},{"term":"Claim on the SBA Guarantee","url":"https://dealroom.so/glossary/claim-on-the-sba-guarantee"},{"term":"Recognized Environmental Conditions","url":"https://dealroom.so/glossary/recognized-environmental-conditions"}],"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":"2026-06-14","sba_rule_sources_checked_through":"2026-06-14"},"citation":{"label":"DealRoom.so SBA 7(a) Q&A","url":"https://dealroom.so/sba-7a/questions/what-if-the-franchise-i-want-to-acquire-is-a-recognized-brand-but-not-listed-on-the-sba-fr","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."]}