Glossary · People and paperwork
In short
A franchisee is the individual or entity that purchases the right to operate a business under the established brand and system of a franchisor. You would be the franchisee if buying an existing franchise.
As a franchisee, you'll be bound by the terms of the franchise agreement. Your lender will review this agreement closely to ensure it doesn't contain clauses that conflict with SBA loan requirements or your ability to repay the loan. Understand your obligations and rights before you commit.
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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