Glossary · People and paperwork
In short
A required document for SBA loans, signed by the franchisor, that modifies certain terms of an existing franchise agreement to comply with SBA eligibility rules.
For SBA financing, your lender will require a specific addendum that ensures the franchisor does not have "negative control" over the franchisee's operations. This addendum must be signed by the franchisor before loan approval if the franchise is not already on the SBA Franchise Directory or requires clarification.
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.
Know what you'll need before you apply
Tell us about the deal and who's buying — we'll flag the guaranty, eligibility, and paperwork issues that slow SBA approval before they cost you time.
Free · No documents · Usually same-day