{"ok":true,"canonical_url":"https://dealroom.so/for-lenders/questions/what-specific-documentation-does-a-lender-need-to-verify-an-unlisted-franchise-s-eligibili","api_url":"https://dealroom.so/api/public/questions/what-specific-documentation-does-a-lender-need-to-verify-an-unlisted-franchise-s-eligibili","question":"What specific documentation does a lender need to verify an unlisted franchise's eligibility for a 7(a) loan?","topic":"Franchise eligibility","audience":"lender","bot_mode":"lender","short_answer":"To verify an unlisted franchise's eligibility, a lender must submit the complete franchise agreement, disclosure document (FDD), and any other ancillary agreements to the SBA for review and placement on the Franchise Directory.","rule":"If a franchise is not on the SBA Franchise Directory, it must be reviewed by the SBA to ensure it does not include affiliation clauses, management restrictions, or other terms that violate SBA regulations. The lender must provide all governing documents for this review, and the SBA will determine if the franchise system is eligible.","example":"A prospective borrower wants to acquire a franchise that is not listed on the SBA Franchise Directory. The lender must collect the full franchise agreement, the franchisor's FDD, and any addenda, then submit these to the SBA for review prior to loan approval.","what_lenders_check":"Lenders risk originating an ineligible loan if an unlisted franchise is not properly vetted by the SBA. Ensuring all required documents are provided and awaiting SBA's eligibility determination are critical steps. Relying on an incomplete review can jeopardize the guaranty.","required_facts":["Unlisted franchise","Franchise agreement","FDD","SBA review","Directory placement"],"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":"Unlisted Franchise Agreement","url":"https://dealroom.so/glossary/unlisted-franchise-agreement"},{"term":"Eligibility documentation","url":"https://dealroom.so/glossary/eligibility-documentation"},{"term":"Lender's Application for Guaranty","url":"https://dealroom.so/glossary/lender-s-application-for-guaranty"},{"term":"Franchise Agreement Addendum","url":"https://dealroom.so/glossary/franchise-agreement-addendum"},{"term":"Franchise eligibility requirements","url":"https://dealroom.so/glossary/franchise-eligibility-requirements"},{"term":"Franchise Eligibility Review","url":"https://dealroom.so/glossary/franchise-eligibility-review"}],"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-specific-documentation-does-a-lender-need-to-verify-an-unlisted-franchise-s-eligibili","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."]}