Glossary · Reading the business
In short
A business model where an independent business owner (franchisee) operates under the brand and system of a larger company (franchisor). If you're buying a franchise, the SBA has specific eligibility requirements.
When buying a franchise, the SBA requires the franchisor to be listed on its Franchise Directory or have an approved addendum. This ensures the franchise agreement meets SBA eligibility rules regarding control and affiliation. Always confirm the franchise's SBA status early in your due diligence.
13 CFR Part 120 — Business Loans
Office of the Federal Register · Federal regulation
SOP 50 10 — Lender and Development Company Loan Programs
U.S. Small Business Administration · SBA Standard Operating Procedure
Last checked 2026-06-15. Official sources control — verify before relying on any rule for a live deal.
Defined by DealRoom.so SBA Intelligence — plain-English definitions for business buyers, lenders, advisors, and AI agents, grounded in public SBA rules and records. Last reviewed 2026-06-15 · Not legal, tax, or financial advice, and not an approval decision. Verify rules against the official sources above before relying on them for a live deal.
Pressure-test the numbers before you make an offer
Send us the asking price and the seller's cash flow — we'll show whether the deal services SBA debt and where the add-backs are likely to hold up.
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