How to Finance a Groombar Franchise: Grooming Vans and Salons
By Marc Cornella
A Groombar franchise loan funds a pet grooming business that can take two shapes: a mobile grooming van that parks at the customer’s home, or a grooming salon, either standalone or inside a pet store. Each format has a different cost structure, so the financing depends on which one you choose, the equipment it needs and your ability to recruit and keep skilled groomers.
US Professional Funding is not affiliated with, sponsored by or endorsed by Groombar; the name is used only to describe the business. Figures from the franchisor’s disclosure document can change, loan programs vary, and every loan is subject to approval. Nothing here is legal, tax or investment advice. Review the current Franchise Disclosure Document (FDD) and franchise agreement with a franchise attorney and an accountant before you sign.
Groombar Franchise Loan at a Glance
- Concept: one-on-one pet grooming for dogs and cats, built around individual attention rather than leaving pets at a salon all day.
- Formats: mobile grooming vans, standalone grooming salons and salons inside affiliated pet retail stores.
- Services: baths and blow-drys, haircuts, nail trims, ear cleaning and full grooming packages focused on coat, skin and hygiene.
- Markets: franchised operations include mobile service in the Chicago area and Northeast Ohio, among other markets.
- Fees and investment: listed in Items 5, 6 and 7 of the FDD. We could not verify them from the franchisor’s own materials.
- SBA Franchise Directory: listed as “Groombar” under code S8786, with a note on lien position (explained below).
What Is Groombar?
Groombar is a pet grooming brand that positions its service like a salon visit for people: a dedicated groomer, a calm setting and grooming packages designed around coat, skin, nails and overall hygiene. The brand is part of a family of pet retail and service concepts, so some Groombar salons operate inside affiliated pet stores while others stand alone.
Mobile grooming. In the mobile format, the groomer drives a fully equipped grooming unit to the customer’s home, grooms the pet inside the van and returns it, so there is no kennel time and no other animals nearby. Owners book appointments online and build routes around a service area of nearby towns.
Salons. A salon requires a lease, tubs, tables, dryers, kennels and a front counter. A salon inside a pet store can share foot traffic and retail customers with the store; a standalone salon has to generate its own traffic.
How lenders view the brand. Grooming is a recurring, needs-based service: most dogs need regular grooming regardless of the economy, and loyal customers rebook. On the other hand, the business depends on groomers, who are in short supply, and the mobile format relies on expensive custom vans. Lenders focus on the equipment, the staffing plan and the borrower’s financial strength.
Groombar Franchise Costs
Base your budget on the current FDD and your own van, lease and equipment quotes. A mobile operation and a salon have very different cost profiles.
Initial franchise fee. Item 5 discloses the fee and any pricing for additional territories or vans. Ask how the fee works if you plan to run more than one van.
Grooming vans. A mobile grooming van is a custom-built vehicle with a grooming table, tub, water heater and tanks, a generator or electrical system, climate control and storage. It is usually the largest single purchase in the mobile format.
Salon build-out. A salon needs plumbing for tubs, drainage, ventilation, non-slip flooring, kennels or holding areas and reception space. Landlord allowances can reduce what you finance.
Equipment and supplies. Expect tables, dryers, clippers, shears, shampoos and conditioners, sanitation supplies and booking software.
Opening costs and working capital. Plan for insurance, licenses, groomer recruiting and training, initial marketing and payroll while the appointment book fills.
Total investment. Item 7 shows the estimated initial investment as a range. Look for line items such as:
- Initial franchise fee
- Grooming van purchase, or a down payment on one
- Van wrap and signage
- Salon lease deposits and leasehold improvements, if applicable
- Grooming equipment, tools and supplies
- Technology and booking software
- Training travel and expenses
- Insurance and licenses
- Grand opening marketing
- Additional funds for the first months of operation
Confirm that the line items add up to the stated total and note which format the table describes.
Ongoing Fees and How They Affect Your Loan
Royalty. Item 6 lists the royalty, usually a percentage of gross revenue. Lenders deduct it before measuring the cash available to repay debt.
Marketing and technology fees. Expect a brand fund contribution, local marketing requirements and charges for booking and customer management software.
Groomer pay. Groomers are often paid by commission or a mix of wages and commission, so labor is the largest operating cost. Lenders want to see realistic pay assumptions for your market.
Van operating costs. Fuel, generator maintenance, water heaters, tires and insurance add up. Plan for replacement of components that wear out.
How lenders factor these costs in. A lender models appointments per van or per groomer per day, average ticket, rebooking rates, labor, royalty, fees and loan payments. Holidays and spring and summer shedding seasons are often busy, so projections should run month by month.
Franchisor Requirements for New Owners
We could not verify published net worth, liquid capital or experience requirements from the franchisor’s own materials. Ask for them in writing. Expect the franchisor to look at your management experience and your plan for hiring groomers if you will not groom yourself.
The process usually includes an inquiry, an FDD review, calls with current owners, territory or site selection, training and a launch plan.
Ways to Own a Groombar Franchise
A new mobile territory. Most owners start with one or more vans in a new territory, so lenders underwrite on projections, liquidity and experience. See our pet care facility start-up financing.
A salon. A standalone salon or one inside a pet store involves a lease and build-out, which lenders review alongside your projections.
Buying an existing business. A resale brings vans or a salon, groomers and a customer list, subject to franchisor approval. Read about buying a franchise resale and our article on buying a pet grooming business.
Financing Options for a Groombar Franchise
SBA 7(a) loans. Because the brand is on the SBA Franchise Directory, an SBA 7(a) loan can cover the franchise fee, vans or build-out, equipment and working capital, subject to approval.
SBA 504 loans. The 504 program finances owner-occupied real estate and long-lived equipment. It may fit an owner who later buys a building for a salon.
Conventional term loans. Established owners adding vans or salons may qualify for a conventional business loan.
Equipment and vehicle financing. Grooming vans, tubs, tables and dryers can be financed or leased separately, each secured by the asset. Learn more about pet care equipment financing and leasing.
Working capital and lines of credit. A line of credit helps cover groomer payroll, supplies and van repairs while the customer base builds. Explore pet care working capital and lines of credit.
Seller financing on resales. A selling owner may carry part of the price. Seller notes are typically subordinate to the senior loan, and SBA rules may limit them, so disclose them early.
SBA Loans for Groombar Franchisees
The SBA Franchise Directory lists brands whose franchise documents have been reviewed for SBA eligibility. A listing does not approve a borrower; each loan is still underwritten on the borrower and the deal. Our article on SBA loans for pet care businesses covers the basics.
The brand’s listing and its note. Groombar appears under code S8786. The note says the lender, or the certified development company on a 504 loan, must make sure it obtains the correct lien position on all collateral as required by the SBA’s standard operating procedures. In plain English, the lender must hold the priority it needs on the business assets, such as the vans, equipment and receivables. If a van is financed through a separate loan, a vendor holds a lien, or a franchise document gives anyone else a security interest, that must be resolved before closing. Disclose every existing lien and lease to your lender.
Program size. The SBA 7(a) program maximum is currently $5 million, though program rules can change.
Application tips. For a Groombar franchise loan, prepare the FDD, van or build-out quotes, a personal financial statement, tax returns, a resume, a groomer hiring plan and monthly projections. Use the SBA loan calculator to estimate payments.
How Lenders Evaluate a Groombar Deal
Credit and financial history. Lenders review credit, tax returns and your personal financial statement, and owners typically sign a personal guarantee.
Net worth and liquidity. Cash for the equity injection plus a reserve for slow early months and van repairs is essential.
Experience. Grooming, pet care or service business management experience helps. If you will not groom, show how you will recruit and keep groomers.
Business plan and projections. Build revenue from appointments per groomer per day, average ticket and rebooking rates. Include commissions, supplies, fuel and maintenance.
The FDD and franchise agreement. Lenders review Items 5, 6, 7, 10, 17 and 19, including whether the FDD has financial performance representations. Read how lenders read an FDD.
Territory or site. The number of households with pets, income levels and drive times matter for vans; foot traffic and lease terms matter for salons.
Historical financials for a resale. Provide financial statements, appointment records and groomer retention history.
The Grooming Van
The van is the business in the mobile format. It must carry fresh and waste water, heat water, power dryers and clippers, and stay comfortable for pets in heat and cold. Downtime means canceled appointments, so maintenance and a repair reserve matter. Under the S8786 note, any separate van loan must fit the senior lender’s lien position, so coordinate van financing with your main loan rather than arranging it on your own.
Multi-Unit Growth and Development Agreements
Growth usually means adding vans and groomers in the same territory, opening a salon or adding territory. Lenders look at existing cash flow, groomer retention and booking demand. Our article on multi-unit franchise financing explains how lenders structure that growth.
Real-World Scenarios
A groomer turned owner. An experienced groomer opens a mobile territory with an SBA 7(a) loan covering the fee, one van and working capital, and grooms on the first van herself.
An investor-operator. A business owner with management experience buys two vans and hires groomers, with a line of credit to cover payroll while bookings grow.
A second van. After a year of full schedules, an owner adds a van with an equipment loan coordinated with the senior lender’s lien position.
Common Mistakes to Avoid
- Buying a van before groomers are hired.
- Underestimating groomer pay and turnover.
- Arranging separate van financing that conflicts with the senior lien.
- Skipping a reserve for generator and water system repairs.
- Ignoring seasonality in projections.
Read more in our article on pet care business loan mistakes.
Next Steps to Finance Your Groombar Franchise
Step 1: Get the current FDD. Focus on Items 5, 6, 7, 10, 17 and 19.
Step 2: Review it with advisors. Have an attorney and an accountant review the agreement, fees and any liens.
Step 3: Choose your format. Decide between mobile vans and a salon.
Step 4: Plan your staffing. Line up groomers before you commit to equipment.
Step 5: Talk to a financing specialist. Decide how to structure the van, equipment and working capital.
Step 6: Apply and close. Coordinate the loan closing with the franchise agreement and van delivery.
Groombar Franchise Loan FAQs
How much does a Groombar franchise cost?
Item 7 of the current FDD gives the estimated range. Costs depend on the format and the number of vans.
What is the franchise fee?
Item 5 of the FDD lists it. We could not verify the fee from the franchisor’s own materials.
What royalty does Groombar charge?
Item 6 lists the royalty and recurring fees, which lenders deduct before measuring repayment ability.
How much liquid capital do I need?
The franchisor sets its own requirement, and lenders expect an equity injection plus a working capital reserve.
Is Groombar eligible for SBA loans?
Yes. It is listed on the SBA Franchise Directory under code S8786, subject to lender approval and the lien position note.
Can I finance a grooming van separately from a Groombar franchise loan?
Yes, but the van lien must fit the senior lender’s required position.
Do I need to be a groomer?
Not necessarily, but you need a credible plan to recruit and keep groomers.
Can I buy an existing Groombar business?
Yes, if one is for sale and the franchisor approves the transfer.
Does the franchisor offer financing?
Item 10 of the FDD discloses any franchisor financing. Plan on outside financing unless it says otherwise.
How long is the franchise term?
Item 17 lists the term, renewal and transfer conditions. Your loan should fit within it.
Final Thoughts
A Groombar franchise loan finances a recurring service business built on skilled people and specialized equipment. Get the FDD, plan your staffing first and keep your liens in order.
US Professional Funding helps franchise owners and buyers finance start-ups, acquisitions, equipment, working capital and refinancing. Learn more about our franchise financing and pet care facility financing solutions.
