How to Finance a Bye Bye Stumps Franchise: Grinders and Trucks
By Marc Cornella
A Bye Bye Stumps franchise loan pays for a business that removes tree stumps for homeowners, tree contractors, cities and property managers. There is no storefront to build, so the money goes mostly into grinding equipment, a truck and trailer, launch marketing and the cash needed to carry payroll until jobs and repeat referrals build up.
This article covers the brand, the Franchise Disclosure Document (FDD), its SBA Franchise Directory listing and how to finance a new territory or resale.
US Professional Funding is not affiliated with, sponsored by or endorsed by Bye Bye Stumps; the name is used only to describe the business. Figures from the franchisor’s disclosure document and website can change, loan programs and terms vary by lender and borrower, and every loan is subject to approval. Nothing here is legal, tax or investment advice; review the current FDD and franchise agreement with a franchise attorney and an accountant before you sign.
Bye Bye Stumps Franchise Loan at a Glance
- Concept: residential and commercial stump grinding, with optional debris haul-away and full site restoration.
- Home base: the company, ByeBye Stumps LLC, is based in Corcoran, Minnesota, and says it has spent 10 years grinding stumps across the Twin Cities metro.
- Royalty: the franchising website lists a royalty of 8% of gross sales.
- Franchise fee and investment range: not confirmed from a current FDD for this article; Items 5 and 7 of the disclosure document set them out.
- Training: the franchisor describes a dual-phase initial training program plus ongoing support in operations, customer service, inventory, pricing and administration, along with marketing support.
- SBA Franchise Directory: listed as “Bye Bye Stumps” under code S8568, with no additional directory notes.
What Is Bye Bye Stumps?
Bye Bye Stumps began as a local stump removal company serving the Minneapolis and Saint Paul area and the outlying communities around it. The operating company grinds stumps below grade with a specialized machine and, depending on the package a customer picks, leaves the grindings, hauls them away or backfills and restores the area.
Three service levels. The company sells its work in tiers it calls Grinding Only, Grind + Haul Away and Full Restoration. Tiered pricing matters to a lender because it shows how average job size can rise when crews add debris removal and restoration labor to the basic grind.
Beyond the stump. The company also lists brush removal, tree trimming and emerald ash borer management. Its commercial work is organized around three groups: tree contractors that hand off stump work, public spaces such as municipal parks and boulevards, and commercial property managers.
How customers buy. The company advertises free estimates, quotes from customer photos and no deposits or upfront billing. That makes selling easy, but the owner pays fuel, labor and machine wear before the customer pays, which is one reason working capital matters.
Why lenders see it the way they do. Lenders reviewing a Bye Bye Stumps franchise loan tend to view it as an equipment-heavy home service business with modest fixed overhead. The main collateral is rolling stock and machinery, the main risks are seasonality, weather and owner execution, and the brand is a younger, regional franchise system. Our article on financing an emerging franchise brand explains how underwriting changes when a system is still small.
Bye Bye Stumps Franchise Costs
The franchisor’s website directs buyers to Item 7 of the FDD for the estimated initial investment. Because a current FDD could not be reviewed for this article, the fee and investment figures are left to the disclosure document itself.
Initial franchise fee. Item 5 lists the fee, when it is due and whether any part is refundable. Treat any placeholder value on a marketing page as unconfirmed until the FDD states it.
Equipment and vehicles. For a stump grinding business, this is usually the largest piece of the budget. Expect a stump grinder, a truck capable of towing it, a trailer and hand tools, and possibly a loader or dump-capable vehicle if you plan to sell haul-away and restoration services.
Opening costs. Look for insurance, licensing, launch marketing, vehicle wraps, technology and training travel.
Working capital. Item 7 usually ends with “additional funds” for an initial operating period. That reserve covers payroll, fuel, maintenance and your own living expenses while the customer base grows.
When you receive the FDD, check the Item 7 table against these questions:
- Which equipment is required, and can you buy new or used?
- Is a truck included, or assumed to be one you already own?
- How many months does the additional funds line cover?
- Does the estimate assume one crew or more than one?
Our article on how lenders read a Franchise Disclosure Document covers which items get the most attention in underwriting.
Ongoing Fees and How They Affect Your Loan
Royalty. The franchising website lists a royalty of 8% of gross sales. Because it is charged on revenue, it rises with every job, including the haul-away and restoration add-ons.
Marketing and technology. Check Item 6 for any brand fund, local advertising requirement, software or call center fees. A service business lives on leads, so these costs are part of the core budget.
How lenders factor these in. Lenders subtract royalties, marketing fees, fuel, repairs and payroll from projected revenue, then compare what is left with the proposed loan payments. Equipment payments and any truck loan count against the same cash flow, so total debt service has to fit the slower months as well as the busy ones.
Franchisor Requirements for New Owners
The franchising website does not publish minimum net worth or liquid capital figures. Expect the franchisor to ask about your finances, your ability to work outdoors and manage crews, and your plans for the territory.
The approval process. The franchising site invites candidates to request a brochure. Expect a discovery conversation, the FDD, attorney review, territory selection and franchisor approval before financing closes.
Ways to Own a Bye Bye Stumps
A new territory. Most buyers in a young system start from scratch: buy the equipment, complete training and build a customer base. Lenders underwrite these deals on projections, the borrower’s experience and collateral. See our franchise start-up financing options.
Buying an existing franchise. If an owner sells, the buyer gets equipment, customer lists, commercial relationships and a revenue history the lender can verify. The franchisor must approve the transfer. Our article on buying a franchise resale walks through transfer approvals and valuation.
Financing Options for a Bye Bye Stumps Franchise
SBA 7(a) loans. Because the brand is on the SBA Franchise Directory, an SBA 7(a) loan can combine the franchise fee, equipment, vehicles, opening costs and working capital in one loan, subject to lender approval.
SBA 504 loans. The 504 program is built for real estate and long-lived fixed assets. Most stump grinding businesses run from a home office or a small yard, so 504 rarely fits unless an owner later buys a shop or storage yard.
Conventional term loans. Buyers with strong credit, collateral and industry experience may use a conventional business loan, particularly for a resale or an expansion by an established owner.
Equipment financing. Stump grinders, tow vehicles, trailers and loaders all hold resale value and can be financed against themselves. Learn about franchise equipment financing and leasing, which can preserve cash for marketing and payroll.
Working capital and lines of credit. In northern markets, frozen ground and snow can slow work for part of the year, while spring cleanup and storm damage can bring a rush. A line of credit helps cover payroll and fuel during slow stretches and lets you take on big commercial jobs. See our franchise working capital solutions.
Seller financing on resales. A seller may agree to carry part of the price on a resale. A seller note is typically subordinate to the senior loan, and SBA programs may limit how it is structured.
SBA Loans for Bye Bye Stumps Franchisees
The SBA Franchise Directory lists brands whose franchise documents have been reviewed for SBA eligibility. Lenders check it before making an SBA-guaranteed franchise loan.
What the listing means here. Bye Bye Stumps appears as “Bye Bye Stumps” under code S8568 with no additional notes. In plain English, the brand’s franchise agreement has been reviewed, and no special addendum or condition is noted on the directory. The listing does not approve any borrower, and the lender still underwrites your credit, experience, projections and collateral.
Loan size. The SBA 7(a) program maximum is currently $5 million, though program rules can change; a single-crew business will need far less.
Application tips. Get equipment quotes before you apply, show how you will cover fixed costs in winter, document any equipment or crew experience and model a ramp-up period instead of full schedules from month one.
Our SBA loan calculator can give a rough payment estimate for planning; it is not an offer or approval.
How Lenders Evaluate a Bye Bye Stumps Deal
Personal credit and financial history. Expect a review of personal credit, tax returns and a personal financial statement, plus a personal guarantee.
Net worth and liquidity. Lenders want an equity contribution and reserves after closing. Our article on how much franchise you can afford helps you test the numbers.
Industry and management experience. Experience running equipment, managing crews or working in landscaping, tree care or construction strengthens an application.
Business plan and projections. Build the plan around job counts per week, the mix of grind-only and full restoration jobs, commercial accounts, seasonal slowdowns, fuel and repair costs, and the 8% royalty.
The FDD and franchise agreement. Lenders look at the term, renewal and transfer rules, territory protection and any equipment requirements.
Equipment and vehicles. Lenders value collateral by type, age and condition, so new and used equipment may be treated differently.
Historical financials for resales. Expect to provide the seller’s tax returns, profit and loss statements and job records.
Equipment: The Core of the Business
The stump grinder is the revenue engine. Machine size affects how fast a crew works, what stumps it can handle and which yards it can reach through a backyard gate.
Other equipment can include a tow vehicle, trailer, safety gear and, for haul-away or restoration jobs, a loader to move grindings and topsoil. Budget for grinder teeth, hydraulic repairs and routine service, since downtime means lost jobs. Financing a machine separately can match payments to its useful life.
Multi-Unit Growth and Development
Growth usually means adding a grinder, truck and crew before adding a whole territory, and lenders look at the first crew’s results before funding the second. A new territory needs franchisor approval, and the lender will review the combined business. Read our article on multi-unit franchise financing to see how lenders handle owners with more than one location.
Real-World Scenarios
A landscaper adding a franchise. A landscaping contractor buys a territory to add stump grinding to existing customer relationships. An SBA 7(a) loan covers the franchise costs and opening reserves, and the existing business’s cash flow helps support the request.
A first-time owner. A former equipment operator buys a new territory, and the lender asks for a winter plan and a cash reserve.
A buyer of an existing franchise. A buyer acquires a territory with commercial accounts. The lender reviews the seller’s history, values the equipment and asks the franchisor to approve the transfer.
Common Mistakes to Avoid
- Using a marketing page instead of the current FDD for fees and investment
- Underestimating repair costs and downtime on grinding equipment
- Ignoring winter months and spring rush cash needs
- Financing equipment with too little working capital left over
- Leaving the 8% royalty out of the cash flow projections
- Skipping franchisor approval steps on a resale
For more pitfalls in trade businesses, read the service contractor loan mistakes that cost owners the most.
Next Steps to Finance Your Bye Bye Stumps Franchise
Step 1: Request the FDD. Get the current disclosure document and review Items 5, 6, 7, 10, 12, 17 and 19 with a franchise attorney.
Step 2: Price your equipment. Get quotes for the grinder, tow vehicle, trailer and anything needed for haul-away or restoration work.
Step 3: Build your projections. Model job counts, average ticket by service tier, seasonality, royalty and marketing costs, and repair reserves.
Step 4: Choose the loan structure. Decide whether a Bye Bye Stumps franchise loan should be SBA 7(a), conventional, equipment financing or a mix, then gather tax returns, a personal financial statement and a business plan.
Step 5: Apply and coordinate approvals. Keep the lender’s timeline in step with franchisor approval and equipment delivery.
Step 6: Close and launch. Fund your working capital reserve, complete training and start marketing before your first busy season.
Bye Bye Stumps Franchise Loan FAQs
How much does a Bye Bye Stumps franchise cost?
The franchisor directs candidates to Item 7 of the FDD for the estimated initial investment. Review the current disclosure document for the full range, which depends mainly on equipment and vehicles.
What is the Bye Bye Stumps royalty?
The franchising website lists a royalty of 8% of gross sales. Check Item 6 of the FDD for any marketing, technology or other fees.
Is Bye Bye Stumps on the SBA Franchise Directory?
Yes. The brand is listed as “Bye Bye Stumps” under code S8568 with no additional notes, so SBA lenders can consider SBA financing for qualified buyers.
Can I finance the stump grinder separately?
Yes. Grinders, trucks and trailers can often be financed with equipment loans or leases, which keeps the main Bye Bye Stumps franchise loan smaller.
How much liquid capital do I need?
The franchising website does not publish a minimum. Lenders generally require an equity contribution and reserves, so ask the franchisor directly and plan for working capital.
Can a first-time business owner get a Bye Bye Stumps franchise loan?
Yes, if the franchisor approves you and the lender is comfortable with your credit, experience and plan. Equipment or crew management experience helps.
Does Bye Bye Stumps offer financing?
Check Item 10 of the current FDD, which discloses any financing the franchisor offers. Most buyers arrange their own loans.
Can I buy an existing Bye Bye Stumps franchise?
If an owner is selling, the franchisor must approve the transfer. Lenders can then underwrite the business’s actual results.
How long is the franchise term?
Item 17 of the current FDD sets the term, renewal and transfer rules. Lenders like the term to run at least as long as the loan.
Does the FDD include financial performance information?
Review Item 19 of the current FDD to see whether it includes financial performance representations.
Final Thoughts
A Bye Bye Stumps franchise loan is mostly an equipment and working capital loan. Confirm costs in the current FDD, price equipment carefully and plan for slow months.
US Professional Funding helps franchise owners and buyers finance start-ups, acquisitions, equipment and working capital. Learn more about our franchise financing and service contractor financing solutions.
