Glossary · Doing the deal
In short
Buying an existing franchised business, meaning you'll operate under the franchisor's established brand, system, and rules. This can offer a proven model but comes with specific obligations.
SBA loans are commonly used for franchise acquisitions, but the franchisor must be listed on the SBA's Franchise Directory. Lenders will review the Franchise Agreement carefully, ensuring it doesn't contain terms that restrict your ability to repay the loan or operate the business.
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.
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