{"ok":true,"canonical_url":"https://dealroom.so/for-lenders/questions/what-is-the-process-for-submitting-a-newly-established-franchise-agreement-for-sba-review-","api_url":"https://dealroom.so/api/public/questions/what-is-the-process-for-submitting-a-newly-established-franchise-agreement-for-sba-review-","question":"What is the process for submitting a newly established franchise agreement for SBA review and directory listing?","topic":"Franchise eligibility","audience":"lender","bot_mode":"lender","short_answer":"Lenders or franchisors submit new franchise agreements to the SBA Franchise Team for review and determination of eligibility and inclusion in the Franchise Directory.","rule":"If a franchise is not listed on the SBA Franchise Directory, the agreement must be submitted for review. The SBA Franchise Team evaluates the agreement to ensure it doesn't grant the franchisor 'undue control' over the franchisee and complies with all other SBA eligibility requirements. This process determines if the franchise concept is eligible for 7(a) financing.","example":"A borrower applies for a 7(a) loan to open a new type of 'eco-friendly car wash' franchise, which is not on the SBA directory. The lender would submit the complete franchise agreement, along with any addenda, to the SBA Franchise Team. The team would then review it for clauses related to control, independent operation, and financial obligations to determine if it can be added to the directory.","what_lenders_check":"Lenders must never assume an unlisted franchise is eligible. Proceeding with a loan application for an unlisted franchise without prior SBA review is a significant risk, as an unfavorable determination will result in an ineligible loan and a denied guaranty.","required_facts":["New franchise","SBA Franchise Directory","SBA review","Undue control","Eligibility determination"],"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 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":"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":"Franchise agreement","url":"https://dealroom.so/glossary/franchise-agreement"},{"term":"Franchise Eligibility Review","url":"https://dealroom.so/glossary/franchise-eligibility-review"},{"term":"Franchise Review Portal","url":"https://dealroom.so/glossary/franchise-review-portal"}],"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-is-the-process-for-submitting-a-newly-established-franchise-agreement-for-sba-review-","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."]}