Glossary · People and paperwork
In short
A legal document that franchisors must provide to prospective franchisees, outlining detailed information about the franchise system, its history, costs, and obligations. It's essential due diligence for any franchise buyer.
If you're buying a franchise, the FDD is your primary source of information. Review it thoroughly to understand fees, training, support, and any restrictions. The SBA requires the FDD and a copy of the Franchise Agreement to approve loans for franchises. Ensure the franchise is listed on the SBA Franchise Directory.
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.
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