Buying a ServiceMaster franchise: SBA acquisition loan data
Since FY2018, SBA lenders have approved 29 7(a) loans to buy an existing ServiceMaster (classified mostly as Janitorial Services), totaling $20M. The median loan was $608,800, 6% lower than the $645,250 median for all SBA-financed acquisitions. 3 of these loans were approved in the last two fiscal years.
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What this tells a buyer
- Price range to expect. Loan size tracks purchase price. Half of ServiceMaster resale loans landed between $390,000 and $880,000.
- Lender experience exists. Hancock Whitney Bank alone has financed 3 ServiceMaster resales.
- Guaranty. The SBA guaranteed 76% of the dollars lent here.
- What the file leaves out. The SBA file does not record franchisor transfer terms or fees.
Financing a ServiceMaster resale
The median SBA 7(a) loan for a ServiceMaster resale was $608,800 across 29 loans (FY2018 to FY2026). Hancock Whitney Bank, Truist Bank and Simmons Bank have financed the most ServiceMaster 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%.
ServiceMaster acquisition loans by year
| Fiscal year | Loans | Total approved | Median loan | |
|---|---|---|---|---|
| FY2018 | 2 | $2.1M | $1,035,000 | |
| FY2019 | 7 | $4M | $581,000 | |
| FY2020 | 6 | $4.1M | $768,150 | |
| FY2021 | 4 | $2.2M | $556,000 | |
| FY2022 | 4 | $4.3M | $676,500 | |
| FY2023 | 2 | $999K | $499,400 | |
| FY2024 | 1 | $470K | $470,000 | |
| FY2025 | 2 | $1.5M | $732,500 | |
| FY2026 | 1 | $350K | $350,000 |
How often do these acquisition loans fail?
Fewer than 20 ServiceMaster 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 ServiceMaster resales
| # | Lender | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Hancock Whitney Bank | 3 | 10.3% | $1.5M | |
| 2 | Truist Bank | 2 | 6.9% | $2.2M | |
| 3 | Simmons Bank | 2 | 6.9% | $2.1M | |
| 4 | Glacier Bank | 2 | 6.9% | $872K | |
| 5 | First Bank of the Lake | 1 | 3.4% | $2.4M | |
| 6 | LGE Community CU | 1 | 3.4% | $1.1M | |
| 7 | Celtic Bank Corporation | 1 | 3.4% | $1M | |
| 8 | The Huntington National Bank | 1 | 3.4% | $1M | |
| 9 | Union Bank and Trust Company | 1 | 3.4% | $880K | |
| 10 | First Merchants Bank | 1 | 3.4% | $755K |
States where ServiceMaster units are bought
The purchase agreement decides what you bought, not the loan approval.
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How lenders classify ServiceMaster
Lenders code each loan to a NAICS industry. For ServiceMaster the codes used were:
| # | Industry | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Janitorial Services | 15 | 51.7% | $10.2M | |
| 2 | Remediation Services | 3 | 10.3% | $2.5M | |
| 3 | Other Services to Buildings and Dwellings | 2 | 6.9% | $2.1M | |
| 4 | Carpet and Upholstery Cleaning Services | 2 | 6.9% | $1.3M | |
| 5 | Other Personal and Household Goods Repair and Maintenance | 2 | 6.9% | $867K |
Questions buyers ask
How much do buyers borrow to buy a ServiceMaster franchise?
The median SBA 7(a) loan for a ServiceMaster resale was $608,800 across 29 loans (FY2018 to FY2026). The middle half of loans ran from $390,000 to $880,000. 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 ServiceMaster acquisitions?
Hancock Whitney Bank has made the most SBA acquisition loans for ServiceMaster (3, 10% of the total). Truist Bank, Simmons Bank, Glacier Bank follow.
What interest rate and term do ServiceMaster acquisition loans carry?
The average initial rate at approval was 6.90% (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 ServiceMaster resale riskier than other SBA-financed acquisitions?
Too few ServiceMaster 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 ServiceMaster units being bought with SBA loans?
Idaho (3), Florida (3), Georgia (2), Maryland (2), Arizona (2). State counts follow where the brand has units and where SBA lending is most active generally; see the state pages for the overall picture.
Terms signed in the LOI shape the purchase agreement that follows.
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Related
- All Janitorial Services acquisitions
- Idaho acquisitions
- Florida acquisitions
- Georgia acquisitions
- Hancock Whitney Bank
- Truist Bank
- Simmons Bank
- All franchise brands
Brand name as recorded by lenders in the SBA file: "ServiceMaster" (franchise code S1554). Figures are aggregates of public SBA data and are not provided or endorsed by the franchisor.