In this exclusive Franchise Chatter FDD Talk post, you’ll learn the following:

Section I – Estimated initial investment (franchise costs) for a Monster Tree Service franchise, based on Item 7 of the company’s 2024 FDD

Section II – Initial franchise fee, royalty fee, and marketing fee for a Monster Tree Service franchise, based on Items 5 and 6 of the company’s 2024 FDD

Section III – Number of franchised and company-owned Monster Tree Service outlets at the start of the year and the end of the year for 2021, 2022, and 2023, based on Item 20 of the company’s 2024 FDD

Section IV – News updates on the Monster Tree Service franchise opportunity

Section V – Presentation and analysis of Monster Tree Service’s financial performance representations (average revenues and/or profits), based on Item 19 of the company’s 2024 FDD, including information on the:

• 2023 aggregate, average, median, highest, and lowest gross revenue by years in business (13-24 months, 25-36 months, and 37+ months) for the 193 Monster Tree Service territories that were in operation for the entire 2023 fiscal year

• 2023 aggregate, average, median, highest, and lowest gross revenue by years in business (13-24 months, 25-36 months, and 37+ months) for the 76 Monster Tree Service franchisees that were in operation for the entire 2023 fiscal year

• gross revenue growth (2022 fiscal year to 2023 fiscal year) of Monster Tree Service franchisees by years in business (13-24 months, 25-36 months, and 37+ months as of December 31, 2023)

• 2023 average gross revenue, cost of goods sold, gross profit, operating expenses, and EBITDA for the 62 Monster Tree Service franchisees (representing 158 territories) who reported gross revenue during the entire 2023 fiscal year

• 2023 average, median, highest, and lowest total job estimates, close ratio, and job size for the 62 Monster Tree Service franchisees (representing 160 territories) that were in operation for the entire 2023 fiscal year and used Monster Tree Service’s proprietary CRM/Estimating/Job Costing software to report the information

• 2022 and 2023 average, median, highest, and lowest gross revenue from plant healthcare jobs for the 58 Monster Tree Service franchisees (representing 150 territories) that were in operation for the entire 2022 and 2023 fiscal years and used Monster Tree Service’s proprietary CRM/Estimating/Job Costing software to report the information

Section VI – Key ratios, comparables, computations, and analyses for the Monster Tree Service franchise opportunity (exclusive content for Platinum subscribers)

Section I – Monster Tree Service Franchise Costs

• Franchise Fee:  $49,500
• Pre-Opening/Grand Opening Marketing Fee:  $6,000
• Training Expenses:  $500 to $3,000
• Equipment and Vehicles:  $119,420 to $426,820
• GPS Tracking Systems:  $360 to $600
• Small Equipment and Tools:  $15,000 to $30,000
• Ongoing Local Marketing:  $24,000
• Insurance:  $35,000 to $45,000
• Professional Fees:  $2,500 to $4,000
• Graphics:  $4,000 to $8,000
• Rent (parking location/office):  $500 to $6,000
• Office Expense:  $500 to $1,250
• Computer, Phone, and Fax Systems:  $1,200 to $3,500
• Required Operating and Financial Software Program:  $1,000 to $3,000
• Business Licenses and Permits:  $500 to $1,500
• Additional Funds:  $206,400 to $224,140
• Total Estimated Monster Tree Service Franchise Costs:  $484,120 to $818,570

Section II – Monster Tree Service’s Initial Franchise Fee, Royalty Fee, and Marketing Fee

• Initial Franchise Fee:  $49,500

• Royalty Fee:  the greater of: (a) the Applicable Percentage; or (b) the Minimum Royalty Fee, as determined below: “Applicable Percentage” means: 6.5% of the first $1,000,000 of Gross Revenue in the then-current calendar year; 5% of Gross Revenue from $1,000,001 to $2,000,000 in the then-current calendar year; 4.25% of Gross Revenue from $2,000,001 to $3,000,000 in the then-current calendar year; and 3.5% of Gross Revenue in excess of $3,000,000 in the then-current calendar year. The Minimum Royalty Fee is determined using the following schedule: Months 1 to 12: none; Months 13 to 24: $350/week; Months 25 to 36: $500/week; Month 37 to Expiration Date: $625/week

• Brand Fund Contribution:  currently, 1% of Gross Revenue

• Local Marketing and/or Cooperative:  you must spend the greater of (a) $2,000 or (b) 5% of Gross Revenue per month on a rolling 12-month average. This includes $350 per month for website management. You must also subscribe to any email marketing program that Monster Tree Service may require.

Section III – Number of Franchised and Company-Owned Monster Tree Service Outlets

Franchised

2021

• Outlets at the Start of the Year:  180
• Outlets at the End of the Year:  244
• Net Change:  +64

2022

• Outlets at the Start of the Year:  244
• Outlets at the End of the Year:  247
• Net Change:  +3

2023

• Outlets at the Start of the Year:  247
• Outlets at the End of the Year:  217
• Net Change:  -30

Company-Owned

2021

• Outlets at the Start of the Year:  4
• Outlets at the End of the Year:  3
• Net Change:  -1

2022

• Outlets at the Start of the Year:  3
• Outlets at the End of the Year:  3
• Net Change:  0

2023

• Outlets at the Start of the Year:  3
• Outlets at the End of the Year:  3
• Net Change:  0

Section IV – News Updates on the Monster Tree Service Franchise

Section V – Financial Performance Representations (Average Revenues and/or Profits) for the Monster Tree Service Franchise (Item 19, 2024 FDD)

• This Item sets forth certain historical information for franchisee-owned outlets for the 2023 fiscal year. As of December 31, 2023, there were 87 franchisees operating in 217 territories.

• Franchisees operate either in a single territory or multiple territories collectively as one Franchised Business. Franchisees who operate multiple territories do not operate, account, or report each territory individually and the historical data reflected in this Item 19 is based on the totals for all territories owned in conjunction with their Monster Tree Service Franchised Businesses.

• The data in this Item from the period prior to May 14, 2021 was collected by the franchisor’s predecessor.

• Part 1 presents information on 76 franchisees (representing 193 territories) that were in operation for the entire 2023 fiscal year.

• Excluded from the tables are 6 franchisees (representing 12 territories) that were not in operation for the entire 2023 fiscal year, 14 franchisees (representing 41 territories) that ceased operation during the 2023 fiscal year, 1 franchisee (representing 4 territories) that opened and closed in the 2023 fiscal year, 2 territories that closed but the franchisee retained at least one operational territory, and 4 franchisees (representing 12 territories) that were in operation for the entire 2023 fiscal year but did not report Gross Revenue using Monster Tree Service’s standard reporting procedures through the required CRM/Estimating/Job Costing software.

Part 1 – Average Annual Gross Revenue and Aggregate Annual Gross Revenue

A. Gross Revenue by Years in Business, by Territory for the Fiscal Year Ended December 31, 2023

In Operation for 13-24 Months

• Number of Franchisees in Group:  3
• Number of Territories in Group:  8
• Aggregate Gross Revenue of Territories in Group:  $1,725,064
• Average Annual Gross Revenue Per Territory for Group:  $215,633
• Median Annual Gross Revenue of Territories in Group:  $287,130
• Highest Annual Gross Revenue of Territories in Group:  $553,798
• Lowest Annual Gross Revenue of Territories in Group:  $199,002
• Number and Percentage of Territories Above Average Revenue in Group:  3 (38%)

In Operation for 25-36 Months

• Number of Franchisees in Group:  18
• Number of Territories in Group:  51
• Aggregate Gross Revenue of Territories in Group:  $14,802,443
• Average Annual Gross Revenue Per Territory for Group:  $290,244
• Median Annual Gross Revenue of Territories in Group:  $247,471
• Highest Annual Gross Revenue of Territories in Group:  $956,394
• Lowest Annual Gross Revenue of Territories in Group:  $110,310
• Number and Percentage of Territories Above Average Revenue in Group:  18 (35%)
• Same-Store Sales:  $14,669,544

In Operation for 37+ Months

• Number of Franchisees in Group:  55
• Number of Territories in Group:  134
• Aggregate Gross Revenue of Territories in Group:  $63,108,458
• Average Annual Gross Revenue Per Territory for Group:  $470,959
• Median Annual Gross Revenue of Territories in Group:  $448,879
• Highest Annual Gross Revenue of Territories in Group:  $1,514,166
• Lowest Annual Gross Revenue of Territories in Group:  $116,636
• Number and Percentage of Territories Above Average Revenue in Group:  49 (37%)
• Same-Store Sales:  $62,500,703

B. Gross Revenue by Years in Business, by Franchisee for the Fiscal Year Ended December 31, 2023

In Operation for 13-24 Months

• Number of Franchisees in Group:  3
• Number of Territories in Group:  8
• Aggregate Gross Revenue of Franchisees in Group:  $1,725,064
• Average Annual Gross Revenue Per Franchisee for Group:  $575,021
• Median Annual Gross Revenue of Franchisees in Group:  $574,259
• Highest Annual Gross Revenue of Franchisees in Group:  $597,007
• Lowest Annual Gross Revenue of Franchisees in Group:  $553,798
• Number and Percentage of Franchisees Above Average Revenue in Group:  1 (33%)

In Operation for 25-36 Months

• Number of Franchisees in Group:  18
• Number of Territories in Group:  51
• Aggregate Gross Revenue of Franchisees in Group:  $14,802,444
• Average Annual Gross Revenue Per Franchisee for Group:  $822,358
• Median Annual Gross Revenue of Franchisees in Group:  $593,697
• Highest Annual Gross Revenue of Franchisees in Group:  $2,531,659
• Lowest Annual Gross Revenue of Franchisees in Group:  $344,992
• Number and Percentage of Franchisees Above Average Revenue in Group:  7 (39%)
• Same-Store Sales:  $14,669,544

In Operation for 37+ Months

• Number of Franchisees in Group:  55
• Number of Territories in Group:  134
• Aggregate Gross Revenue of Franchisees in Group:  $63,108,458
• Average Annual Gross Revenue Per Franchisee for Group:  $1,147,427
• Median Annual Gross Revenue of Franchisees in Group:  $1,089,862
• Highest Annual Gross Revenue of Franchisees in Group:  $3,501,487
• Lowest Annual Gross Revenue of Franchisees in Group:  $194,742
• Number and Percentage of Franchisees Above Average Revenue in Group:  24 (44%)
• Same-Store Sales:  $62,500,703

Part 2 – Gross Revenue, Total Operating Expense Ratios, and EBITDA Margins for 2023

• The table below reports the Gross Revenue and certain Operating Expenses as a Percentage of Gross Revenue based on the averages for the 62 franchisees representing 158 territories who reported Gross Revenue during the entire 2023 fiscal year.

• Excluded from this Part are 6 franchisees (representing 12 territories) that were open for less than 13 months, 14 franchisees (representing 41 territories) that ceased operation during the 2023 fiscal year, 1 existing franchisee (representing 2 territories) that closed during the 2023 fiscal year, 1 franchisee (representing 4 territories) that opened and closed in 2023, 4 franchises (representing 12 territories) that were not in operation for the entire 2023 fiscal year, and 14 franchisees (representing 35 territories) that do not have sufficient P&L Data.

Number of Franchisees:  62

Number of Territories:  158

Gross Revenue:  $1,072,536 (100%)

Cost of Goods Sold

• Cost of Production Expenses:  $101,844 (9%)
• Cost of Production Labor:  $338,521 (32%)
• Cost of Equipment and Vehicle:  $93,971 (9%)
• Total Cost of Goods Sold:  $534,336 (50%)

Gross Profit:  $538,200 (50%)

Operating Expenses

• Marketing Expense:  $51,559 (5%)
• Non-Production Payroll:  $94,126 (9%)
• Employee Benefits:  $12,525 (1%)
• Insurance Expenses:  $42,750 (4%)
• Selling Expense:  $4,849 (0%)
• Bank and Merchant Fees:  $9,982 (1%)
• Administrative Expense:  $41,150 (4%)
• Professional Fees:  $7,903 (1%)
• Franchise Obligations:  $80,098 (7%)
• Total Operating Expenses:  $344,942 (32%)

EBITDA:  $193,258 (18%)

Part 3 – Total Estimates, Average Job Size, and Close Ratio

• The table below sets forth the average total job estimates, average close ratio, and average job size of 62 franchisees (representing 160 territories) that were in operation for the entire 2023 fiscal year and used the required CRM/Estimating/Job Costing software to report the information. The table excludes Company-Owned Outlets.

Total Estimates

• Average Performance of Franchisees in Group:  1,910
• Median Performance of Franchisees in Group:  1,398
• Highest Performance of Franchisees in Group:  9,819
• Lowest Performance of Franchisees in Group:  278
• Number and Percentage That Exceeded Average:  19 (30%)

Close Ratio

• Average Performance of Franchisees in Group:  37%
• Median Performance of Franchisees in Group:  35%
• Highest Performance of Franchisees in Group:  66%
• Lowest Performance of Franchisees in Group:  22%
• Number and Percentage That Exceeded Average:  24 (39%)

Average Job Size

• Average Performance of Franchisees in Group:  $1,798
• Median Performance of Franchisees in Group:  $1,761
• Highest Performance of Franchisees in Group:  $3,422
• Lowest Performance of Franchisees in Group:  $544
• Number and Percentage That Exceeded Average:  30 (48%)

Part 4 – Plant Healthcare Gross Revenue

• The table below sets forth the Gross Revenue generated from plant healthcare jobs for the fiscal year ending December 31, 2023 and the fiscal year ending December 31, 2022 for 58 franchisees (representing 150 territories) that were in operation for the entire 2022 and 2023 fiscal years and used the required CRM/Estimating/Job Costing software to report the information. The table excludes the Affiliate-Owned Outlet.

• Plant Healthcare is defined as the care of plants, trees, and shrubs by developing and maintaining overall health and includes fertilization, suppression of diseases, or reduction and/or elimination of insect populations causing decline or death of trees, shrubs, or plants and does not include tree removal, pruning, and stump grinding services.

Plant Healthcare

• 2023 Total Gross Revenue:  $2,412,083
• 2023 Average Gross Revenue:  $49,226
• 2022 Total Gross Revenue:  $2,104,595
• 2022 Average Gross Revenue:  $47,832

• Number of Franchises:  58
• Number of Territories:  150
• 2023 Revenue:  $2,412,083
• 2023 Average Revenue:  $49,226
• 2023 Median Revenue:  $15,133
• 2023 Maximum Revenue:  $398,629
• Number and Percentage Above Average:  12 (21%)

Section VI – Monster Tree Service Franchise Ratios, Comparables, Computations, and Analyses (Exclusive Content for Platinum Subscribers) ⬇️