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

Section I – Estimated initial investment (franchise costs) for The Grounds Guys franchise, based on Item 7 of the company’s 2024 FDD

Section II – Initial franchise fee, royalty fee, and marketing fee for The Grounds Guys franchise, based on Items 5 and 6 of the company’s 2024 FDD

Section III – Number of franchised and company-owned The Grounds Guys 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 Grounds Guys franchise opportunity

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

• 2023 average, median, highest, and lowest gross sales for the 90 franchised The Grounds Guys businesses that were open for at least 3 years and for the full 12 months of the 2023 calendar year and reporting for at least 9 months of the 2023 calendar year

• 2023 average, median, highest, and lowest gross sales for the 59 franchised The Grounds Guys businesses that were open for less than 3 years and for the full 12 months of the 2023 calendar year and reporting for at least 9 months of the 2023 calendar year

Section VI – Key ratios, comparables, computations, and analyses for The Grounds Guys franchise opportunity (exclusive content for Platinum subscribers)

Section I – The Grounds Guys Franchise Costs

• The Grounds Guys franchise costs, based on Item 7 of the company’s 2024 FDD:

• Initial Franchise Fee:  $35,000 for a territory of up to 100,000 in population, plus $350 per 1,000 additional population
• Software Fee:  $1,920
• Vehicle:  $7,000 to $82,000
• Equipment, Supplies, and Inventory:  $21,000 to $41,000
• Insurance:  $1,200 to $3,000
• Advertising & Promotional and Local Marketing Spending:  $15,000 to $25,000
• Training, Travel, Lodging, and Food:  $2,500 to $5,650
• Deposits, Permits, and Licenses:  $50 to $3,000
• Professional Fees:  $150 to $2,000
• Real Estate:  $0 to $6,000
• Additional Funds for 3 Months:  $5,000 to $30,000
• Total Estimated The Grounds Guys Franchise Costs:  $88,820 to $234,570, plus any additional franchise fee

Section II – The Grounds Guys’ Initial Franchise Fee, Royalty Fee, and Marketing Fee

• The Grounds Guys’ initial franchise fee, royalty fee, and marketing fee, based on Items 5 and 6 of the company’s 2024 FDD:

• Initial Franchise Fee:  $35,000 for a territory of up to 100,000 in population, plus $350 per 1,000 additional population
• License Fee:  5-6% of Gross Sales, except for “roll-in” sales. In addition, minimum license fees apply.
• Marketing, Advertising, and Promotion Fee:  2% of Gross Sales, except for “roll-in” sales
• Local Marketing Groups:  not to exceed 3% of Gross Sales

Section III – Number of Franchised and Company-Owned The Grounds Guys Outlets

Franchised

2021

• Outlets at the Start of the Year:  183
• Outlets at the End of the Year:  195
• Net Change:  +12

2022

• Outlets at the Start of the Year:  195
• Outlets at the End of the Year:  211
• Net Change:  +16

2023

• Outlets at the Start of the Year:  211
• Outlets at the End of the Year:  225
• Net Change:  +14

Company-Owned

2021

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

2022

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

2023

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

Section IV – News Updates on The Grounds Guys Franchise

Section V – Financial Performance Representations (Average Revenues and/or Profits) for The Grounds Guys Franchise (Item 19, 2024 FDD)

• The information set forth in this Item 19 is derived from historical operating results of The Grounds Guys franchised businesses indicated for the time periods covered, which data were reported to The Grounds Guys by the franchisees. Franchisees are not required to use generally accepted accounting principles when reporting these figures.

• As of December 31, 2023, there were 225 The Grounds Guys businesses in operation in the United States, all of which were franchised businesses. The tables below in this Item 19 show average and median annual gross sales data for the calendar year 2023 (the “Reporting Period”) for (i) 90 franchised businesses that, as of December 31, 2023, had been in operation for at least 3 years and that reported Gross Sales data to The Grounds Guys for at least 9 months of the Reporting Period (Part 1), and (ii) 59 franchised businesses that, as of December 31, 2023, had been in operation for less than 3 years and reported Gross Sales for at least 9 months of the Reporting Period (Part 2).

• Because of the potential seasonality of the business in certain geographic areas, all franchised businesses that reported Gross Sales to the franchisor for at least 9 months of the Reporting Period were included as part of the data set used to create the tables in this Item 19.

• The information provided in this Item 19 does not include data from (a) 28 franchised businesses that opened during the year 2023 and as a result did not report data for at least 9 months of the Reporting Period, (b) 5 franchised businesses that underwent a change of ownership transfer in 2023 and as a result did not report data for at least 9 months of the Reporting Period, (c) 2 franchised businesses that only reported Gross Sales data to The Grounds Guys on an aggregated basis for the franchised businesses and therefore The Grounds Guys was unable to use such data in this Item 19; and (d) 41 franchised businesses that operated less than 9 months of the year due to the seasonality of their business and as a result did not report Gross Sales data to The Grounds Guys for at least 9 months of the Reporting Period.

• Twenty-eight franchised businesses were excluded from this Item 19 because they closed during the Reporting Period and so they were not in operation for the entire Reporting Period. Of the 28 businesses that closed during the Reporting Period, 1 business closed after being open for less than 12 months.

• Some outlets have earned this amount. Your individual results may differ. There is no assurance you will earn as much.

• As used herein, “Gross Sales” means and includes the total revenues and receipts from whatever source (whether in the form of cash, credit, agreement to pay, barter, trade, or other consideration) that arise, directly or indirectly, from the operation of – or in connection with – a Grounds Guys business whether under any of the Marks or otherwise.

• Gross Sales exclude sales taxes collected from customers and paid to the appropriate taxing authority and any other bona fide refunds, rebates, or discounts that the franchisor authorizes in writing. Gross Sales also exclude sales from any Excluded Services (as defined in a mutually executed Excluded Services Addendum).

Part 1 – Statement of Average and Median Annual Gross Sales (3+ Years in Operation)

• The following table provides the average and median annual Gross Sales data for 90 franchised businesses that, as of December 31, 2023, had been in operation for at least 3 years and reported Gross Sales data to The Grounds Guys for at least 9 months of the Reporting Period.

2023

• Number of Reporting Businesses:  90
• High Annual Gross Sales:  $3,183,028
• Low Annual Gross Sales:  $12,362
• Average Annual Gross Sales:  $811,399
• Number and Percent at or Above Average:  31/34%
• Median Annual Gross Sales:  $598,650

• “Number of Reporting Businesses” is the number of franchised businesses included in this analysis (i.e., open for at least 3 years and for the full 12 months of the Reporting Period and reporting for at least 9 months of the Reporting Period).

Part 2 – Statement of Average and Median Annual Gross Sales (Less Than 3 Years in Operation)

• The following table provides the average and median annual Gross Sales data for 59 franchised businesses that, as of December 31, 2023, had been in operation for less than 3 years and reported Gross Sales data to The Grounds Guys for at least 9 months of the Reporting Period.

2023

• Number of Reporting Businesses:  59
• High Annual Gross Sales:  $1,117,508
• Low Annual Gross Sales:  $19,369
• Average Annual Gross Sales:  $268,746
• Number and Percent at or Above Average:  25/42%
• Median Annual Gross Sales:  $228,832

• “Number of Reporting Businesses” is the number of franchised businesses included in this analysis (i.e., open for less than 3 years and for the full 12 months of the Reporting Period and reporting for at least 9 months of the Reporting Period).

Section VI – The Grounds Guys Franchise Ratios, Comparables, Computations, and Analyses (Exclusive Content for Platinum Subscribers) ⬇️