When you want to buy a franchise using an SBA loan, the SBA Franchise Registry can make the financing process much quicker. This registry is a national database of franchise brands whose franchise agreements and disclosure documents have been pre-approved by the Small Business Administration (SBA). It is designed to streamline SBA loan approvals specifically for franchise businesses.
Before this registry existed, lenders had to carefully examine every franchise agreement on a case-by-case basis to ensure it complied with SBA rules—especially around ensuring the franchisee operates as an independent business owner rather than an employee. This review was time-consuming and repetitive, given that many lenders reviewed the same franchise agreements repeatedly.
The SBA Franchise Registry resolves this by pre-screening franchise legal documents. Franchise companies voluntarily submit their Franchise Disclosure Documents (FDD) and agreements to the SBA, which reviews them for SBA compliance. Approved franchises are then listed in the publicly accessible SBA Franchise Directory.
Benefits of the SBA Franchise Registry include:
- Faster Loan Processing: Lenders can bypass detailed legal reviews of franchise agreements if the franchise is on the registry, expediting loan approval.
- Reduced Documentation Burden: Borrowers and lenders face less paperwork and fewer delays.
- Confidence in SBA Eligibility: Registered franchises meet SBA affiliation and control standards, reducing uncertainty.
Though having a franchise on the registry greatly smooths the SBA loan process, franchises not on the list can still qualify for SBA loans. In those cases, lenders perform the detailed legal review themselves, which can extend loan processing times.
If you’re interested in SBA franchise financing, check the official SBA Franchise Directory to see if your desired franchise is on the list. Also, learn more about SBA loans generally in our SBA Loan glossary article.
Common Misconceptions:
- The registry is NOT an SBA endorsement or recommendation of a franchise’s profitability, only a review of its legal compliance.
- You can still get SBA financing for franchises not on the list—it just requires additional lender scrutiny.
By understanding the SBA Franchise Registry, prospective franchisees can navigate the SBA loan process more confidently and efficiently.
Sources:
- SBA Franchise Directory (U.S. Small Business Administration)
- What Is The SBA Franchise Registry? (Forbes)
For related topics, see our glossary entries for Franchise Loan and Franchise Disclosure Document (FDD).