{"ok":true,"canonical_url":"https://dealroom.so/sba-7a/questions/what-if-the-franchise-i-want-to-buy-is-not-on-the-sba-s-franchise-directory","api_url":"https://dealroom.so/api/public/questions/what-if-the-franchise-i-want-to-buy-is-not-on-the-sba-s-franchise-directory","question":"What if the franchise I want to buy is not on the SBA's 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 and related documents to the SBA for a direct eligibility review.","rule":"The SBA maintains a Franchise Directory to streamline the eligibility review process. For unlisted franchises, the lender must provide the SBA with the franchise agreement and all exhibits. The SBA will then review these documents to ensure the franchise system meets its eligibility requirements, particularly regarding control and affiliation.","example":"If you apply to purchase a unique regional franchise called 'Green Cleaners' and it's not on the directory, your lender will compile the franchise disclosure document (FDD) and agreement. They will then send it to the SBA for a specific eligibility determination, which can add time to the approval process.","what_lenders_check":"Lenders prefer franchises on the directory due to simplified eligibility. For unlisted franchises, they bear the responsibility of compiling and submitting comprehensive documentation to the SBA and addressing any questions that arise during the review, which requires additional time and effort.","required_facts":["Not on Franchise Directory","Lender submission required","SBA direct review","Franchise agreement compliance"],"source_families":["SOP 50 10 - Lender and Development Company Loan Programs","13 CFR Part 121 - Small Business Size Regulations"],"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 121 - Small Business Size Regulations","url":"https://www.ecfr.gov/current/title-13/chapter-I/part-121"}],"related_questions":[{"question":"How does the SBA evaluate the eligibility of a specific franchise system for 7(a) loans?","url":"https://dealroom.so/sba-7a/questions/how-does-the-sba-evaluate-the-eligibility-of-a-specific-franchise-system-for-7-a-loans"},{"question":"Are there specific franchise fees or royalties that are ineligible for 7(a) loan financing?","url":"https://dealroom.so/sba-7a/questions/are-there-specific-franchise-fees-or-royalties-that-are-ineligible-for-7-a-loan-financing"},{"question":"What happens if the franchise I want to buy is not listed on the SBA directory?","url":"https://dealroom.so/sba-7a/questions/what-happens-if-the-franchise-i-want-to-buy-is-not-listed-on-the-sba-directory"},{"question":"Does an SBA 7(a) loan cover the initial franchise fee and associated startup costs?","url":"https://dealroom.so/sba-7a/questions/does-an-sba-7-a-loan-cover-the-initial-franchise-fee-and-associated-startup-costs"}],"related_terms":[{"term":"SBA's Franchise Directory","url":"https://dealroom.so/glossary/sba-s-franchise-directory"},{"term":"SBA Franchise Directory","url":"https://dealroom.so/glossary/sba-franchise-directory"},{"term":"Franchise Directory","url":"https://dealroom.so/glossary/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":"Repair to the guaranty","url":"https://dealroom.so/glossary/repair-to-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":"2026-06-14","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-buy-is-not-on-the-sba-s-franchise-directory","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."]}