For any franchise, licence, dealer, jobber or similar relationship meeting the FTC franchise definition (16 CFR 436, including PMPA fuel and new car dealer agreements), the SBA Lender checks the SBA Franchise Directory before submitting a non-delegated application or approving a delegated loan, and does not proceed if the brand (or any of the Applicant's franchise agreements, including a single non-critical agreement) is not listed or has been found ineligible. It enters the franchise name and SBA Franchise Identifier Code (for multiple brands, the brand producing most revenue, the others listed in the credit memorandum), confirms the brand and agreement type match the Directory, and documents Directory listing in the delegated file. Where a delegated 7(a) Lender concludes the brand is not a franchise it bears the risk of that decision; a delegated CDC sends the documents to SBA for a final determination. Franchise development (master franchise) agreements are passive and ineligible; area development rights for own units are allowed if the group is small; a management agreement with the franchisor or its affiliate makes the Applicant ineligible.
The graph holds this control, the 0 it maps to, and the evidence behind each claim, over MCP and REST.