Franchise Failure Rates

SBA 7(a) loan outcomes · FY2010–FY2019 cohort · Statuses as of June 30, 2026 · Last updated August 17, 2026

The Grounds Guys Franchise Failure Rate: 36.4% SBA Loan Defaults (2010–2019 Federal Data)

36.4%
charge-off rate on 55 SBA 7(a) loans to The Grounds Guys franchisees, FY2010–2019
Charge-off rate, SBA 7(a) loans approved FY2010–FY2019 — The Grounds Guys against its industry and all franchises
Charge-off rate, SBA 7(a) loans approved FY2010–FY2019: The Grounds Guys 36.4%; Landscaping Services 7.0%; All franchises 10.2%The Grounds Guys 36.4%; Landscaping Services 7.0%; All franchises 10.2%0%10%20%30%40%The Grounds Guys36.4%Landscaping Services7.0%All franchises10.2%
Charge-off rate, SBA 7(a) loans approved FY2010–FY2019: The Grounds Guys 36.4%; Landscaping Services 7.0%; All franchises 10.2%The Grounds Guys 36.4%; Landscaping Services 7.0%; All franchises 10.2%0%10%20%30%40%The Grounds Guys36.4%Landscaping Services7.0%All franchises10.2%

Source: U.S. SBA FOIA dataset, statuses as of June 30, 2026. Figures also in the comparison table below.

About 1 in 3 The Grounds Guys SBA borrowers failed to repay — more than double the Landscaping Services average of 7.0%.

Between 2010 and 2019, 55 The Grounds Guys franchisees financed with SBA 7(a) loans. 20 defaulted — a 36.4% charge-off rate, 5.2x the Landscaping Services average of 7.0%. Source: U.S. Small Business Administration FOIA dataset, loan statuses as of June 30, 2026.

What is the The Grounds Guys franchise failure rate on SBA loans?

The Grounds Guys is a Landscaping Services franchise. This page reports the outcome of every SBA 7(a) loan the U.S. Small Business Administration's public FOIA file attributes to The Grounds Guys franchisees: 55 loans approved between fiscal 2010 and 2019, of which 20 were charged off. Loan statuses are as of June 30, 2026, and the cohort has matured, so these are settled outcomes rather than projections.

How does The Grounds Guys compare with other Landscaping Services franchises?

The table sets The Grounds Guys's charge-off rate beside its Landscaping Services peers and the two economy-wide benchmarks. All figures use the same cohort — SBA 7(a) loans approved FY2010–FY2019, statuses as of June 30, 2026 — and the same denominator of resolved loans, so they are directly comparable. A cell in red is more than twice the industry benchmark.

The Grounds Guys versus benchmarks, SBA 7(a) loans approved FY2010–FY2019, statuses as of June 30, 2026. Source: U.S. SBA FOIA dataset.
MeasureThe Grounds GuysLandscaping ServicesAll franchisesAll SBA borrowers
Default (charge-off) rate36.4%7.0%10.2%8.0%
Loans in sample55———
Defaults20———
Average loan size$162,696———

What has The Grounds Guys SBA lending looked like since 2020?

Since 2020, The Grounds Guys franchisees have taken 162 new SBA 7(a) loans. 20 have already charged off. Early defaults on loans under six years old are notable — most SBA failures take longer to develop.

Charge-off rate by approval year — share of each fiscal year's The Grounds Guys SBA 7(a) loans that later defaulted (FY2010–FY2019); years with fewer than 10 loans are outlined, not filled
Charge-off rate by approval year: FY2013 0% of 2 loans; FY2014 40% of 5 loans; FY2015 0% of 1 loans; FY2016 0% of 10 loans; FY2017 43% of 7 loans; FY2018 42% of 12 loans; FY2019 56% of 18 loansCharge-off rate by approval year: FY2013 0% of 2 loans; FY2014 40% of 5 loans; FY2015 0% of 1 loans; FY2016 0% of 10 loans; FY2017 43% of 7 loans; FY2018 42% of 12 loans; FY2019 56% of 18 loans0%30%60%0%2013n=240%2014n=50%2015n=10%2016n=1043%2017n=742%2018n=1256%2019n=18
Charge-off rate by approval year: FY2013 0% of 2 loans; FY2014 40% of 5 loans; FY2015 0% of 1 loans; FY2016 0% of 10 loans; FY2017 43% of 7 loans; FY2018 42% of 12 loans; FY2019 56% of 18 loansCharge-off rate by approval year: FY2013 0% of 2 loans; FY2014 40% of 5 loans; FY2015 0% of 1 loans; FY2016 0% of 10 loans; FY2017 43% of 7 loans; FY2018 42% of 12 loans; FY2019 56% of 18 loans0%30%60%0%’13n=240%’14n=50%’15n=10%’16n=1043%’17n=742%’18n=1256%’19n=18

Loans approved since 2020, by fiscal year — counts only: 20 have charged off to date and most are still outstanding, so no rate is drawn.

Loans approved since 2020: FY2020 27; FY2021 37; FY2022 19; FY2023 28; FY2024 28; FY2025 11; FY2026 12Loans approved since 2020: FY2020 27; FY2021 37; FY2022 19; FY2023 28; FY2024 28; FY2025 11; FY2026 12272020372021192022282023282024112025122026
Loans approved since 2020: FY2020 27; FY2021 37; FY2022 19; FY2023 28; FY2024 28; FY2025 11; FY2026 12Loans approved since 2020: FY2020 27; FY2021 37; FY2022 19; FY2023 28; FY2024 28; FY2025 11; FY2026 1227’2037’2119’2228’2328’2411’2512’26

Source: U.S. SBA FOIA dataset, statuses as of June 30, 2026.

Show the numbers behind this chart
Fiscal yearLoansCharged offRate
FY2013200.0%
FY20145240.0%
FY2015100.0%
FY20161000.0%
FY20177342.9%
FY201812541.7%
FY2019181055.6%
FY202027—outstanding
FY202137—outstanding
FY202219—outstanding
FY202328—outstanding
FY202428—outstanding
FY202511—outstanding
FY202612—outstanding

How to read this

A charge-off means a franchisee borrowed, operated, and failed severely enough that the SBA wrote off the government-guaranteed loan. Unlike franchisor marketing or Item 19 disclosures, this is an observed outcome recorded by a federal agency. One caveat cuts the other way: SBA borrowers are typically less capitalized than all-cash buyers, so these rates can overstate risk for well-funded operators.

How reliable is this number?

The Grounds Guys's figure rests on 55 resolved SBA 7(a) loans approved between fiscal 2010 and 2019 — a matured cohort, so the rate is a settled outcome, not a projection. With 55 resolved loans, one default moves the rate by about 1.8 percentage points. Loans approved since 2020 are excluded from the rate because most are still outstanding; they appear on this page as counts only. Every The Grounds Guys figure is recomputed from the public SBA FOIA file on each rebuild.

Based on 55 resolved loans — directional, not precise.

Frequently asked

What is The Grounds Guys's franchise failure rate on SBA loans?
Between 2010 and 2019, 55 The Grounds Guys franchisees financed with SBA 7(a) loans. 20 defaulted — a 36.4% charge-off rate, 5.2x the Landscaping Services average of 7.0%. Source: U.S. Small Business Administration FOIA dataset, loan statuses as of June 30, 2026.
Is The Grounds Guys a safe franchise investment?
Between 2010–2019, The Grounds Guys franchisees defaulted on SBA loans at 36.4% versus a 7.0% industry average. This data is one input for due diligence; it is not investment advice.

Cite this page

Franchise Default Rates (2026). The Grounds Guys franchise SBA 7(a) default rate, FY2010–FY2019 cohort: 36.4% (20 of 55 loans charged off). Derived from U.S. SBA FOIA data, loan statuses as of June 30, 2026.

https://franchisefailurerates.com/franchise/the-grounds-guys/ · Data & methodology · Download the dataset (CSV)