Glossary · People and paperwork
In short
The legal contract outlining the terms and conditions between a franchisor and a franchisee, including rights, responsibilities, and fees. The SBA reviews this agreement carefully for eligibility.
For an SBA loan, the franchise agreement must comply with SBA rules, particularly concerning the franchisor's control over the franchisee. The SBA generally requires the franchisor to be on its Franchise Directory or have an approved addendum, confirming the agreement doesn't violate SBA eligibility terms. Your lender will need to review it.
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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