Glossary · Doing the deal
Franchise Resale(Existing franchise acquisition)
In short
A franchise resale is the acquisition of an existing franchised business from a current franchisee. This process involves approval from both the seller and the franchisor.
What it means in a deal
When buying an existing franchise, you'll need to satisfy the franchisor's requirements for new franchisees, including their approval process and potentially attending training. Ensure the franchisor has approved the transfer of the franchise agreement to you before proceeding with loan closing.
Official sources
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.
Related terms
Common questions about Franchise Resale
- Can an SBA 7(a) loan finance a franchise resale where the current franchisee is selling the existing location?
- What if the primary business assets are specialized machinery with limited resale value?
- If I acquire a franchise, does the SBA approve the specific franchise location?
- What if a franchise agreement is not listed on the SBA Franchise Directory?
- What due diligence is required for a franchise not on the SBA Franchise Directory?
- How does a lender confirm a franchise is listed on the SBA Franchise Directory?
Defined by CapBench 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.
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