SBA 7(a) Q&A
Short answer
Yes, buyers acquiring a franchise, especially those new to the system or industry, are typically required to complete the franchisor's mandatory training program.
Franchisors usually have mandatory training programs for new and existing franchisees to ensure consistency in operations and brand standards. Lenders consider the completion of such training as evidence of the buyer's commitment and preparation to successfully operate the business. This is part of evaluating the buyer's management capabilities.
A buyer acquiring an existing 'Smoothie King' franchise location will need to complete the franchisor's standard 2-week training program at their corporate headquarters or designated training facility before the loan can close.
Insider move
Lenders verify that the buyer has completed or is committed to completing all required franchisor training. This ensures the buyer is adequately prepared to run the business according to established brand standards, which mitigates operational risk and supports the repayment ability.
13 CFR Part 120 — Business Loans
Office of the Federal Register · Federal regulation
SOP 50 10 - Lender and Development Company Loan Programs
Last checked 2026-06-14. Official sources control — verify before relying on any rule for a live deal.
Last reviewed 2026-06-14 · SBA sources checked through 2026-06-14. DealRoom analysis of public SBA 7(a) lending records (FY2020–present). Grounded in the current SBA rulebook; verify against the official sources above before relying on it for a live deal. Not legal, tax, or financial advice, and not an approval decision.
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