{"ok":true,"canonical_url":"https://dealroom.so/sba-7a/questions/what-is-the-process-for-getting-a-franchise-approved-if-it-s-new-and-not-yet-on-the-sba-fr","api_url":"https://dealroom.so/api/public/questions/what-is-the-process-for-getting-a-franchise-approved-if-it-s-new-and-not-yet-on-the-sba-fr","question":"What is the process for getting a franchise approved if it's new and not yet on the SBA Franchise Directory?","topic":"New Franchise Approval","audience":"borrower","bot_mode":"buyer","short_answer":"For new franchises, the franchisor must submit its Franchise Disclosure Document (FDD) and franchise agreement directly to the SBA for review and inclusion on the Franchise Directory.","rule":"If a franchise system is new and not yet listed, the franchisor needs to take the initiative to submit their FDD and standard franchise agreement to the SBA. The SBA will review these documents to ensure they meet eligibility standards and do not contain clauses that conflict with SBA loan program requirements. Once approved, it will be added to the directory.","example":"If you want to acquire a unit of a brand-new franchise system, the franchisor must first work with the SBA to get their system approved and added to the directory before your loan application can proceed smoothly.","what_lenders_check":"Lenders cannot move forward with a new franchise until it gains SBA approval and is listed. They will advise borrowers that the franchisor must initiate this process, as individual borrowers cannot submit franchise agreements for directory listing.","required_facts":["New franchise","SBA Directory","Franchisor FDD","SBA review"],"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":"Not-for-Profit Business","url":"https://dealroom.so/glossary/not-for-profit-business"},{"term":"New venture","url":"https://dealroom.so/glossary/new-venture"},{"term":"SBA's Franchise Directory","url":"https://dealroom.so/glossary/sba-s-franchise-directory"},{"term":"Approved lender","url":"https://dealroom.so/glossary/approved-lender"},{"term":"Lender's Application for Guaranty","url":"https://dealroom.so/glossary/lender-s-application-for-guaranty"},{"term":"New Business Entity","url":"https://dealroom.so/glossary/new-business-entity"}],"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/what-is-the-process-for-getting-a-franchise-approved-if-it-s-new-and-not-yet-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."]}