The Grounds Guys Franchise in 2024: Costs, Fee & FDD
Looking to invest in a growing landscaping franchise? The Grounds Guys, backed by Neighborly, offers comprehensive services, robust support, and affordable entry costs. Discover if this opportunity aligns with your goals by exploring key insights here.
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The Grounds Guys, originally founded as Sunshine Grounds Care in 1987 by a group of ten brothers, has established itself as a significant player in the landscaping industry. With a focus on excellent workmanship and customer satisfaction, the brand grew through the shared vision of its founders. In 2010, the franchise was rebranded and transformed under the guidance of Neighborly (formerly Dwyer Group), allowing it to expand rapidly across North America. This evolution has reinforced the company’s commitment to high-quality service and genuine care for its customers, making it a trusted name in the landscaping field.
At the core of The Grounds Guys’ offerings are landscaping and lawn care services, including maintenance, design, and installation. Their ancillary services range from tree care to irrigation system management, catering primarily to residential clients but also serving commercial properties. The company targets homeowners who value well-maintained outdoor spaces, seeking reliable and comprehensive solutions for their landscaping needs. By adhering to their C.A.R.E. principles—Customers first, Attitude, Respect, and Enjoy life in the process—the franchise distinguishes itself from competitors and builds lasting relationships with clients.
The Grounds Guys have seen remarkable growth, boasting over 200 franchise locations across the United States and Canada. This extensive network enables the company to reach a diverse customer base, handling thousands of daily service requests. Their ability to scale operations while maintaining high standards speaks to their effective business model and the growing demand for professional landscaping services in various markets.
Franchisees benefit from a robust support system that includes comprehensive training programs, ongoing operational support, and marketing assistance. The Grounds Guys prioritize equipping their franchise owners with the tools and resources necessary for success. Their commitment to excellence is further emphasized by their dedication to community engagement and environmental stewardship, reinforcing their status as a leader in the landscaping industry.
The Grounds Guys Franchise Insights
- The franchise operates under a robust business model that emphasizes customer satisfaction, evidenced by their commitment to the C.A.R.E. principles, which promote consistent quality across all locations.
- The Grounds Guys provide a wide range of services, including lawn maintenance, landscaping design, and irrigation management, catering to both residential and commercial clients.
- The franchise emphasizes sustainability and environmentally friendly practices, appealing to eco-conscious customers and enhancing its brand reputation.
- With a significant number of daily service requests, franchisees have the opportunity to tap into a large customer base, driving potential revenue growth.
The Grounds Guys Franchise Key indicators
Growth YOY (%)
7%
vs industry 4%
Total U.S. Franchised Units
225
3-Year Failure Rate
27%
vs industry 13%
Sales-to-Investment ratio
4:1
How much does it cost to open a The Grounds Guys franchise?
Understanding the potential investment size and capital requirements is crucial when considering opening a The Grounds Guys franchise. These financial commitments, including initial franchise fees, equipment costs, and ongoing operational expenses, impact the feasibility and profitability of the venture. Thoroughly evaluating these factors ensures that potential franchisees are prepared for the financial responsibilities and can make informed decisions about their ability to sustain and grow the business, ultimately contributing to long-term success.
Min & Max Investment
Opening a The Grounds Guys franchise involves several key costs, which are outlined in Item 7 of the Franchise Disclosure Document (FDD). You can see a breakdown of the costs to open a The Grounds Guys below from the most recent Item 7 below:
| Type of Expenditure | Minimum Investment | Maximum Investment |
|---|---|---|
| Initial Franchise Fee | $35,000 | $35,000 + $350 per 1,000 additional population |
| Software Fee | $1,920 | $1,920 |
| Vehicle | $7,000 | $82,000 |
| Equipment, Supplies & Inventory | $14,500 | $20,900 |
| Insurance | $1,200 | $3,000 |
| Advertising & Promotional and Local Marketing Spending | $15,000 | $25,000 |
| Training, Travel, Lodging & Food | $2,500 | $5,650 |
| Deposits, Permits & Licenses | $50 | $3,000 |
| Professional Fees | $150 | $2,000 |
| Real Estate | $0 | $6,000 |
| Additional Funds - 3 Mo. | $5,000 | $30,000 |
| Totals | $82,320 | $214,470 plus any additional franchise fee |
Item 7 in the Franchise Disclosure Document (FDD) is the “Estimated Initial Investment” section. It outlines the total costs a franchisee can expect to incur when starting a franchise, including the initial franchise fee, equipment, inventory, real estate, and other startup expenses. This section is crucial because it provides potential franchisees with a detailed understanding of the financial commitment required, helping them assess affordability and plan their investment strategy effectively.
Required Capital
When considering a franchise like The Grounds Guys, it’s important to understand the financial requirements for opening and operating the business. Here’s an overview of the capital, liquid assets, and net worth typically required to establish a franchise in the landscaping industry:
- Total Investment The overall investment for The Grounds Guys ranges from approximately $82,000 to $214,000. This includes various startup costs, equipment, and initial marketing expenses. Assuming that you will finance your franchise investment, you should plan to have 20% of the total investment amount in the form of equity (cash) for the investment.
- Liquid Assets Requirement Franchisees should generally have liquid assets of around $30,000 to $50,000. This amount is crucial for covering initial operating expenses and providing a financial cushion as the business begins to grow.
- Net Worth Requirement A minimum net worth of about $150,000 to $200,000 is often recommended for potential franchisees in this industry. This ensures that franchisees have the financial stability necessary to manage their investment effectively.
How much does a The Grounds Guys franchise owner make?
Calculating the salary of a The Grounds Guys franchise owner involves analyzing gross sales to determine total revenue, assessing operational efficiency to understand profit margins, and accounting for franchisor fees and additional expenses such as rent, utilities, and payroll. Effective management of these factors can significantly impact the profitability and financial success of a The Grounds Guys franchise owner. This comprehensive financial analysis helps estimate net profits, from which the owner’s salary can be derived. A clear understanding of these factors ensures accurate salary projections and financial planning for sustainable business operations.
The Grounds Guys Revenue & Gross Sales
The Grounds Guys franchise has demonstrated strong revenue performance, with median gross sales reaching approximately $598,650. This figure reflects the brand’s robust market presence and customer demand for its landscaping services.
Which key factors impact the average revenue performance of The Grounds Guys franchisees?
Several key factors have likely contributed to the strong performance of U.S. franchisee median gross sales for The Grounds Guys. The franchise’s commitment to exceptional customer service and high-quality workmanship has built a loyal client base, fostering repeat business and referrals. Additionally, the brand’s comprehensive training and support systems empower franchisees to effectively manage their operations and deliver consistent results. The increasing demand for professional landscaping services, driven by homeowners seeking to enhance their outdoor spaces, has also played a significant role. Furthermore, effective marketing strategies and a strong brand presence in local communities have helped franchisees attract new customers and grow their businesses. Together, these elements create a favorable environment for financial success within the franchise.
The Grounds Guys Franchise Operational Costs
When considering the opening of a franchise like The Grounds Guys, it’s essential to understand the key ongoing operational costs that will impact your business’s profitability. These expenses are critical for maintaining daily operations and ensuring consistent service quality.
- Labor Costs Employee wages, benefits, and payroll taxes represent a significant portion of operational expenses, especially as you’ll need a reliable team for landscaping and maintenance services.
- Vehicle Expenses Costs related to vehicle maintenance, fuel, insurance, and leasing or financing will be ongoing, as transportation is crucial for service delivery.
- Equipment Maintenance Regular upkeep and repairs for landscaping equipment are necessary to ensure efficiency and longevity, contributing to your overall operational costs.
- Supplies and Inventory Expenses for landscaping materials, fertilizers, and other supplies required for daily operations can add up, impacting your cash flow.
- Insurance Liability insurance and other necessary coverage are vital to protect your business from potential risks and liabilities.
Understanding these operational costs will help you better prepare for the financial responsibilities of running a franchise and set realistic expectations for your business’s performance.
The Grounds Guys Franchise Fees
When evaluating the financial structure of a franchise like The Grounds Guys, it’s important to consider the various fees associated with ongoing operations. These fees play a critical role in maintaining brand standards, supporting marketing efforts, and ensuring franchisees have access to necessary resources.
- License Fee This fee ranges from 5-6% of gross sales and is due weekly. It provides franchisees with the rights to operate under The Grounds Guys brand, contributing to the overarching support system that includes training, operational guidance, and brand recognition.
- MAP Fee The 2% MAP fee (Marketing, Advertising, and Promotion) is calculated from gross sales. This fee is essential for funding national marketing campaigns and promotional efforts that enhance brand visibility and attract new customers, benefiting all franchise locations.
- Additional Fees Franchisees may incur additional costs for specialized training programs, advanced technology tools, and other resources provided by The Grounds Guys.
Understanding these fees will help you gauge the financial commitment required to operate within The Grounds Guys franchise system effectively. Being informed about these ongoing costs enables you to plan your budget accordingly and leverage the support provided by the franchisor for long-term success.
The Grounds Guys Franchise Earnings
The earnings potential for a The Grounds Guys franchise owner can fluctuate based on various factors such as location, sales performance, operational efficiency, and cost management. However, average figures suggest a promising income for dedicated franchisees. With median gross sales around $598,650, owner-operators can expect estimated earnings of approximately $72,000, reflecting an operating profit margin of 12%.
Active involvement in daily operations allows franchise owners to directly influence efficiency and customer satisfaction, further enhancing their income potential. These insights underscore the opportunity for substantial profitability in The Grounds Guys franchise for those willing to commit to an engaged, proactive management style.
How to Open a The Grounds Guys Franchise
Becoming a franchisee with The Grounds Guys involves a series of steps designed to ensure both the franchisor and franchisee are well-prepared for a successful partnership. From initial inquiry to launching your business, here’s an overview of the process:
- Initial Inquiry You or your franchise specialist submits an initial inquiry basic information about your interest and background. You should also conduct thorough research on the franchise, including seeing all of the information available on the Vetted Biz franchise intelligence platform, including access to the most recent Franchise Disclosure Document (FDD).
- Franchise Application After the initial discussion, interested candidates fill out a formal franchise application, providing financial details and relevant business background to ensure they meet the necessary qualifications.
- Discovery Day Qualified candidates are invited to a Discovery Day, where they meet the corporate team, learn more about the company culture, and see firsthand how the franchise operates.
- Franchise Agreement After completing due diligence, the next step is signing the franchise agreement. This legally binds both parties and sets the terms for the franchise relationship.
- Training Program New franchisees participate in an extensive training program covering everything from operations to marketing, ensuring they have the tools needed for success.
- Site Selection and Setup The franchisor provides guidance on territory selection, while the new franchisee begins acquiring necessary equipment, hiring staff, and preparing to launch the business.
- Grand Opening Once operations are set up and initial marketing efforts are in place, the business officially opens, supported by the franchisor’s continued guidance and resources.
Pros & Cons
Pros
Strong Brand Recognition: Backed by Neighborly, The Grounds Guys benefits from a well-established reputation in the landscaping industry, helping you attract clients more easily.
Growing Industry: Landscaping and lawn care services are in high demand, offering steady income opportunities, especially in residential and commercial sectors.
Affordable Initial Investment: With total investment ranging from $82,000 to $214,000, it is relatively affordable compared to many other franchises, making it accessible for first-time business owners.
Cons
Seasonal Business: Depending on your location, the landscaping industry can be highly seasonal, which may lead to fluctuating revenues and a need for careful cash flow management during off-peak months.
Hands-On Operation: As an owner-operator model, running The Grounds Guys requires a lot of hands-on involvement, which might not suit those seeking a more passive business venture.
Competitive Market: The landscaping industry can be highly competitive, with many local and regional providers offering similar services, which could impact profitability in certain markets.
