Is My Franchise on the SBA Directory?

What Is the SBA Franchise Directory?

The SBA maintains an official directory of franchise systems that have been reviewed and deemed eligible for SBA financing.^[1] When a brand is on the directory, lenders can rely on it and don't need to review the franchise documents for eligibility, except a management agreement that isn't part of the FDD.

The directory includes thousands of franchises across all industries, from fast food to fitness centers to home services. It's updated regularly as new franchises are added or existing entries are modified. Once you confirm your franchise is listed, the next step is understanding how to finance your franchise acquisition with an SBA 7(a) loan.

How Do I Check the SBA Franchise Directory?

1. Visit the SBA website: Go to sba.gov
2. Go to the Franchise Directory: Search for "Franchise Directory" or find it under lending resources
3. Search by name: Enter your franchise name (try variations if needed)
4. Review the listing: Check for any additional issues the lender must consider

What You'll Find

Each listing shows:

• Brand name (and, where applicable, the type of agreement)
• FTC franchise determination: Whether the SBA found the brand meets the FTC definition of a franchise
• SBA Franchise Identifier Code: Issued only when the agreement meets the FTC definition
• Additional issues: Anything else the lender must consider, such as documentation that the business will be open to all or review of a third-party management agreement

What Does a Directory Listing Mean?

Listed

The SBA has reviewed the brand and found it eligible. The lender records the brand name and SBA Franchise Identifier Code with the application, confirms the brand (and agreement type) you'll operate under matches the listing, and keeps a copy of your executed franchise agreement.^[2]

Listed with Additional Issues

Some listings flag things the lender still has to address, for example:

• Documentation that the business will be open to all
• Review of a third-party management agreement, to make sure you aren't an ineligible passive business
• The specific type of agreement the listing covers

Not Listed

If the brand meets the FTC definition of a franchise and isn't on the directory, the loan can't proceed. Brands that don't meet the FTC definition can be listed at their request, and if one isn't listed, the lender has to explain its determination and the SBA makes the final call.^[4]

What If My Franchise Isn't Listed?

Step 1: Contact Your Franchisor

Ask whether the brand has been submitted to the SBA and when. Many franchisors already have a listing under a different name, so check name variations first.

Step 2: The Franchisor Submits the Documents

The franchisor (not you, and not your lender) sends the franchise agreement, the FDD if applicable, and all other documents it requires franchisees to sign to [email protected]. The SBA may also ask for the operations manual.^[3]

Step 3: Franchisor Certification

If the SBA finds the brand eligible, it sends the franchisor a Franchisor Certification to sign. Once the signed certification comes back, the SBA lists the brand and assigns its Franchise Identifier Code.

Step 4: Your Loan Proceeds

With the brand listed, your lender can submit or approve the loan. If the SBA finds the brand ineligible, the franchisor can ask for reconsideration or appeal through [email protected].

Is Being Listed Enough?

Not always. The directory covers the brand, but your business still has to be eligible. SOP 50 10 8.1 makes "leveled" models ineligible, where the owner relies on a middle-level operator (for example, some cleaning-service models) and doesn't own the contracts that support the business. Businesses that need a professional license to operate, such as medspas, must have an ownership structure that meets the state's rules, and the lender documents that in the file. And a franchisee operating under a Franchise Development (master franchise) Agreement is treated as passive and isn't eligible.

What Are Common Directory Issues?

Name Variations

Franchises may be listed under slightly different names. Try:

• Parent company name
• Trade name variations
• With/without "Inc." or "LLC"

Removed Listings

The SBA can remove a brand, for example if the franchisor doesn't comply with its certification or the brand is no longer eligible, after giving the franchisor 30 days' notice to respond. Check the directory when you apply, not just when you first look at the brand.

Listings with Additional Issues

Read the listing carefully. Some name issues your lender must address, such as reviewing a third-party management agreement, and the agreement you sign has to match the brand and agreement type on the listing.

Why Does Directory Status Matter?

Being on the directory provides certainty and speed:

• Faster closing: No brand review needed
• Lender confidence: Lenders know the franchise is SBA-approved
• Predictable process: Standard documentation works

Franchises not on the directory face:

• A hard stop: The lender can't submit or approve the loan until the brand is listed
• Franchisor cooperation: Only the franchisor can submit the brand for review
• Uncertainty: No fixed timeline, and no guarantee the brand is found eligible