Glossary · Doing the deal
In short
This is a clause in some franchise agreements that allows the franchisor to buy back the business from a franchisee under specific conditions, often related to performance or a change of ownership.
When buying a franchised business, a mandatory repurchase option means the franchisor can force a sale back to them if you trigger certain provisions in the franchise agreement. Your lender will scrutinize this as it impacts collateral. Ensure you understand all triggers and implications before signing the franchise agreement, as it could affect your exit strategy.
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.
Line up financing while you're under LOI
Tell us the business, the price, and your timeline — we'll match you with lenders who close deals like yours and flag anything that stalls the process.
Free · No documents · Usually same-day