Glossary · Reading the business
In short
The level of influence a franchisor has over the operations of a franchised business. This can impact your autonomy as an owner and affect SBA loan eligibility.
The SBA has specific rules about franchisor control to ensure the small business borrower, not the franchisor, controls the business. Your franchise agreement will be reviewed to confirm that the franchisor doesn't have "negative control" over critical management decisions, such as hiring/firing or setting pricing. Confirm the franchise is listed on the SBA Franchise Directory before proceeding.
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.
Free · No documents · Usually same-day