Glossary · Reading the business
In short
An individual location or business operation that is part of a larger franchise system. Buyers care because buying a franchise unit means operating under an established brand with specific rules and support, but also ongoing fees and restrictions.
SBA loans are commonly used for franchise acquisitions, but the franchise system must be listed on the SBA Franchise Directory or receive an SBA addendum. Your lender will require you to sign a new franchise agreement with the franchisor. Understand the ongoing service fee and other obligations.
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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