Buying a Mr. Handyman franchise: SBA acquisition loan data
Since FY2018, SBA lenders have approved 12 7(a) loans to buy an existing Mr. Handyman (classified mostly as All Other Specialty Trade Contractors), totaling $5.4M. The median loan was $408,350, 37% lower than the $645,250 median for all SBA-financed acquisitions. 5 of these loans were approved in the last two fiscal years.
Terms signed in the LOI shape the purchase agreement that follows.
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What this tells a buyer
- Price range to expect. Loan size tracks purchase price. Half of Mr. Handyman resale loans landed between $196,800 and $686,500.
- Lender experience exists. Citizens Bank alone has financed 4 Mr. Handyman resales.
- Guaranty. The SBA guaranteed 75% of the dollars lent here.
- What the file leaves out. The SBA file does not record franchisor transfer terms or fees.
Financing a Mr. Handyman resale
The median SBA 7(a) loan for a Mr. Handyman resale was $408,350 across 12 loans (FY2018 to FY2026). Citizens Bank, The Huntington National Bank and Wells Fargo Bank National Association have financed the most Mr. Handyman resales. Too few of these loans are old enough to measure a charge-off rate; the average for all SBA acquisition loans is 3.5%.
Mr. Handyman acquisition loans by year
| Fiscal year | Loans | Total approved | Median loan | |
|---|---|---|---|---|
| FY2018 | 1 | $764K | $763,800 | |
| FY2019 | 0 | $0 | - | |
| FY2020 | 1 | $144K | $143,900 | |
| FY2021 | 0 | $0 | - | |
| FY2022 | 1 | $500K | $500,000 | |
| FY2023 | 1 | $291K | $291,000 | |
| FY2024 | 3 | $737K | $212,400 | |
| FY2025 | 0 | $0 | - | |
| FY2026 | 5 | $2.9M | $672,000 |
How often do these acquisition loans fail?
Fewer than 20 Mr. Handyman acquisition loans are old enough to measure losses reliably, so no charge-off rate is shown. The benchmark across all SBA acquisition loans in the FY2018 to FY2021 cohort is 3.5% by count. Non-acquisition 7(a) loans (every other stated purpose) approved FY2018 to FY2021 charged off at 6.2%.
"Charged off" is the SBA's final loss action on a defaulted loan after collection efforts. It lags default by a year or more, which is why only older cohorts are measured. It is not the same as a delinquency rate, and loans still outstanding can still fail. See charge-off in the glossary.
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Lenders financing Mr. Handyman resales
| # | Lender | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Citizens Bank | 4 | 33.3% | $1.3M | |
| 2 | The Huntington National Bank | 3 | 25.0% | $1.8M | |
| 3 | Wells Fargo Bank National Association | 1 | 8.3% | $764K | |
| 4 | VelocitySBA, LLC | 1 | 8.3% | $730K | |
| 5 | Virginia National Bank | 1 | 8.3% | $500K | |
| 6 | PNC Bank, National Association | 1 | 8.3% | $212K | |
| 7 | The First National Bank of McGregor d/b/a TFNB Your Bank for Life | 1 | 8.3% | $144K |
States where Mr. Handyman units are bought
The purchase agreement decides what you bought, not the loan approval.
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How lenders classify Mr. Handyman
Lenders code each loan to a NAICS industry. For Mr. Handyman the codes used were:
| # | Industry | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | All Other Specialty Trade Contractors | 4 | 33.3% | $2.5M | |
| 2 | Other Personal and Household Goods Repair and Maintenance | 3 | 25.0% | $737K | |
| 3 | Residential Remodelers | 2 | 16.7% | $1.2M | |
| 4 | All Other Personal Services | 2 | 16.7% | $435K | |
| 5 | Site Preparation Contractors | 1 | 8.3% | $500K |
Questions buyers ask
How much do buyers borrow to buy a Mr. Handyman franchise?
The median SBA 7(a) loan for a Mr. Handyman resale was $408,350 across 12 loans (FY2018 to FY2026). The middle half of loans ran from $196,800 to $686,500. The loan excludes the buyer's equity and any seller note and may include working capital, so the price is usually higher than the loan.
Which banks finance Mr. Handyman acquisitions?
Citizens Bank has made the most SBA acquisition loans for Mr. Handyman (4, 33% of the total). The Huntington National Bank, Wells Fargo Bank National Association, VelocitySBA, LLC follow.
What interest rate and term do Mr. Handyman acquisition loans carry?
The average initial rate at approval was 9.13% (a blend of fixed and variable loans across several rate environments, so treat it as context, not a quote). The median term was 10 years.
Is a Mr. Handyman resale riskier than other SBA-financed acquisitions?
Too few Mr. Handyman acquisition loans are old enough to measure. The benchmark for all SBA acquisition loans is 3.5% charged off in the FY2018 to FY2021 cohort.
Where are Mr. Handyman units being bought with SBA loans?
Virginia (3), Wisconsin (2), Florida (1), New Jersey (1), Alabama (1). State counts follow where the brand has units and where SBA lending is most active generally; see the state pages for the overall picture.
Seller note standby terms and third-party consents are reviewed before closing.
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Related
- All All Other Specialty Trade Contractors acquisitions
- Virginia acquisitions
- Wisconsin acquisitions
- Florida acquisitions
- Citizens Bank
- The Huntington National Bank
- Wells Fargo Bank National Association
- All franchise brands
Brand name as recorded by lenders in the SBA file: "Mr. Handyman" (franchise code S1139). Figures are aggregates of public SBA data and are not provided or endorsed by the franchisor.