Buying a Grounds Guys franchise: SBA acquisition loan data
Since FY2018, SBA lenders have approved 6 7(a) loans to buy an existing Grounds Guys (classified mostly as Landscaping Services), totaling $4M. The median loan was $520,200, 19% 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 The Grounds Guys resale loans landed between $299,975 and $703,750.
- Lender experience exists. Banner Bank alone has financed 2 The Grounds Guys 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 Grounds Guys resale
The median SBA 7(a) loan for a Grounds Guys resale was $520,200 across 6 loans (FY2018 to FY2026). Banner Bank, Truliant FCU and Grasshopper Bank National Association have financed the most The Grounds Guys 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%.
The Grounds Guys acquisition loans by year
| Fiscal year | Loans | Total approved | Median loan | |
|---|---|---|---|---|
| FY2018 | 0 | $0 | - | |
| FY2019 | 2 | $795K | $397,500 | |
| FY2020 | 0 | $0 | - | |
| FY2021 | 0 | $0 | - | |
| FY2022 | 1 | $247K | $246,500 | |
| FY2023 | 0 | $0 | - | |
| FY2024 | 0 | $0 | - | |
| FY2025 | 2 | $2.4M | $1,183,000 | |
| FY2026 | 1 | $580K | $580,000 |
How often do these acquisition loans fail?
Fewer than 20 The Grounds Guys 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.
Seller note standby terms and third-party consents are reviewed before closing.
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Lenders financing The Grounds Guys resales
| # | Lender | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Banner Bank | 2 | 33.3% | $795K | |
| 2 | Truliant FCU | 1 | 16.7% | $1.9M | |
| 3 | Grasshopper Bank National Association | 1 | 16.7% | $580K | |
| 4 | Banc of California | 1 | 16.7% | $460K | |
| 5 | Citizens Bank | 1 | 16.7% | $247K |
States where The Grounds Guys units are bought
| # | State | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Washington | 2 | 33.3% | $795K | |
| 2 | Georgia | 1 | 16.7% | $1.9M | |
| 3 | Texas | 1 | 16.7% | $580K | |
| 4 | New Jersey | 1 | 16.7% | $460K | |
| 5 | Tennessee | 1 | 16.7% | $247K |
The purchase agreement decides what you bought, not the loan approval.
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Questions buyers ask
How much do buyers borrow to buy a Grounds Guys franchise?
The median SBA 7(a) loan for a Grounds Guys resale was $520,200 across 6 loans (FY2018 to FY2026). The middle half of loans ran from $299,975 to $703,750. 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 The Grounds Guys acquisitions?
Banner Bank has made the most SBA acquisition loans for The Grounds Guys (2, 33% of the total). Truliant FCU, Grasshopper Bank National Association, Banc of California follow.
What interest rate and term do The Grounds Guys acquisition loans carry?
The average initial rate at approval was 8.04% (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 Grounds Guys resale riskier than other SBA-financed acquisitions?
Too few The Grounds Guys 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 The Grounds Guys units being bought with SBA loans?
Washington (2), Georgia (1), Texas (1), New Jersey (1), Tennessee (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.
Terms signed in the LOI shape the purchase agreement that follows.
Request Engagement AssessmentAlex Lubyansky leads every engagement.
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Related
- All Landscaping Services acquisitions
- Washington acquisitions
- Georgia acquisitions
- Texas acquisitions
- Banner Bank
- Truliant FCU
- Grasshopper Bank National Association
- All franchise brands
Brand name as recorded by lenders in the SBA file: "The Grounds Guys" (franchise code S1758). Figures are aggregates of public SBA data and are not provided or endorsed by the franchisor.