About The Grounds Guys Franchise
The Grounds Guys is a landscaping and grounds maintenance franchise offering commercial and residential lawn care, landscape design, snow removal, and property maintenance services.
The brand has been franchising since 2010 and operates within the Neighborly family of home service brands, ultimately backed by KKR.
Each franchise territory builds a full service grounds care operation serving local homeowners, businesses, and property managers.
The Grounds Guys Franchise Cost & Fees
| Fee Type | Amount | Notes |
|---|---|---|
| Initial Franchise Fee | $35,000 minimum (plus $350 per 1,000 population above 100,000 minimum) | One-time payment upon signing |
| Royalty Fee | 5-6% of Gross Sales (License Fee) of gross sales | Ongoing; paid monthly |
| Marketing/Ad Fund | 2% of Gross Sales (MAP Fee) per week | National brand fund |
| Total Investment Range | $81,220 – $200,870 | Includes build-out, inventory, working capital |
The investment range of $81K–$201K reflects variability in build-out costs, store size, lease terms, and market. The combined royalty (5-6% of Gross Sales (License Fee)) and marketing fee (2% of Gross Sales (MAP Fee) per week) are ongoing costs paid as a percentage of gross sales.
Investment Breakdown (Item 7)
| Item | Low | High |
|---|---|---|
| Initial Franchise Fee | $35,000 | $35,000 |
| Software Fee | $1,920 | $1,920 |
| Vehicle | $4,000 | $50,000 |
| Equipment, Supplies & Inventory | $16,300 | $36,300 |
| Insurance | $1,200 | $5,000 |
| Advertising & Promotional and Local Marketing Spending for Marketing Start-up Phase | $15,000 | $25,000 |
| Training, Travel, Lodging & Food | $2,500 | $5,650 |
| Deposits, Permits & Licenses | $50 | $1,000 |
| Professional Fees | $250 | $5,000 |
| Additional Funds - 3 Mo. | $5,000 | $30,000 |
| Real Estate | $0 | $6,000 |
Additional Fees (Item 6)
| Fee Type | Amount |
|---|---|
| Transfer Fee | Greater of $7,500 or 5% of the total gross sales price of the Business |
| Renewal Fee | $5,000 |
| Technology Fee | $372 per month (Software System Monthly Fee for GGPro, Qvinci, FranConnect, NPS product, video training, digital checklist, Office365 accounts) |
| Audit Fee | Cost of audit plus expenses, plus any amount owed as shown by the audit, plus interest and late fees (triggered by 2%+ understatement of Gross Sales or failure to provide requested information) |
| Local Marketing Groups (LMG) | Not to exceed 3% of Gross Sales |
| Call Center Services Monthly Fee | One-time setup $150; monthly base $150; per minute $0.99 |
| Annual Convention (Reunion) Fee | Currently $1,000 or less per registrant |
| Late Fee (Franchise Agreement) | $10 per day on overdue fees |
| Dishonored Check or ACH Draft | $25 per occurrence |
| Interest on unpaid balances | 12% per annum |
| Amendment Fee | $250 |
| Key Accounts/Management Fee | Up to 5% of total Gross Sales related to Key Account work |
| Additional Training Fee | Up to $600 per day |
| Supplemental/Additional Website Fee | Annual fee up to $15 for domain; monthly up to $30 per additional website |
Training Program (Item 11)
| Detail | Information |
|---|---|
| Total Duration | Phase I: approximately 17.38 hours of classroom training (online); Phase II: approximately 36.9 hours of classroom training (at Waco, TX offices or virtual); Field Training: 8-40 hours on-the-job; Technical Training: 48-96 hours classroom and 48-96 hours on-the-job; Continuing Education: approximately 5.75 hours ongoing |
| Classroom Training | Approximately 17.38 hours (Phase I) + 36.9 hours (Phase II) + additional continuing education |
| On-the-Job Training | 8-40 hours (field training) + 48-96 hours (technical training) |
| Training Location | Phase I: online/telephone conference; Phase II: Waco, Texas offices or virtual; Field Training: various franchised business locations or virtual; Technical Training: various locations or virtual |
| Additional Training | Annual Reunion (conference) required at franchisee's expense; refresher or advanced training may be required; continuing education program with approximately 5.75 hours of additional classroom training |
Territory Rights (Item 12)
| Detail | Information |
|---|---|
| Territory Type | Protected territory with limited exclusivity — franchisor will not operate or grant another Grounds Guys franchise with rights to market within franchisee's Territory during the term, but franchisee does not receive an exclusive territory and may face competition from other franchisees, company-owned outlets, or other channels |
| Exclusive Territory | No |
| Territory Size | Minimum population of 100,000; maximum generally 500,000 (larger territory may be allowed in certain circumstances) |
| Description | Franchisee receives a designated territory with limited protection. Franchisor and affiliates reserve all other rights not specifically granted, including the right to sell products/services under different trademarks anywhere, solicit Key Accounts within the territory, and allow other franchisees or third parties to perform services in the territory in certain circumstances. Franchisees may not advertise outside their Territory without prior written consent. |
Renewal, Termination & Transfer (Item 17)
| Detail | Information |
|---|---|
| Initial Term | 10 years |
| Renewal Term | One additional 10-year term |
| Renewal Fee | $5,000 |
| Renewal Conditions | Must not be in default; must have satisfied all monetary and other material obligations on a timely basis; must have received no more than 3 written notices of default during the term; must give written notice; franchisee and guarantors must sign a general release; must pay $5,000 renewal fee; must complete then-current training requirements; must sign the then-current form of franchise agreement (which may have materially different terms and fees) |
| Transfer Fee | Greater of $7,500 or 5% of the total gross sales price of the Business (may be discounted or waived for transfers to entities controlled by franchisee or immediate family members) |
| Transfer Conditions | Franchisee must not be in default; must have paid all amounts owed; must have provided all required reports; new franchisee must qualify; training for new franchisee must be arranged; franchisee, owners and guarantors must sign release; transfer fee must be paid; current franchise agreement must be signed by new franchisee; new franchisee must agree to be bound by all customer obligations |
| Termination for Cause | Franchisor may terminate only if franchisee defaults. Curable defaults: 10 days to cure failure to pay amounts due or submit reports; 30 days to cure all other curable defaults. Non-curable defaults include: material misrepresentation in franchise application, voluntary abandonment, closure by authorities for safety reasons, unauthorized domain name registration, insolvency, felony conviction, intentional understatement or underreporting of Gross Sales, and second default of any type within any 12-month period. |
| Non-Compete Period | 2 years post-termination or expiration |
| Non-Compete Details | During the term, franchisee (and guarantors, owners, spouse, children, parents, or siblings if individual) cannot be involved in any Competitive Business. For 2 years after termination or expiration, franchisee cannot operate a Competitive Business within the Territory, within a 25-mile radius of the outer boundary of the Territory, or inside the territory of another Grounds Guys business. |
Operations & Supply (Items 8 & 15)
| Detail | Information |
|---|---|
| Owner-Operator Required | Yes |
| Participation Details | If franchisee is an individual, they must directly perform or supervise the operation of the Business unless the franchisor consents otherwise. If franchisee is a corporation or other legal entity, a designated owner (principal owner) who has successfully completed training must provide direct, on-site supervision unless the franchisor consents otherwise. If a manager supervises instead of the principal owner, the manager must be a bona fide manager who has completed training. Franchisee cannot have an interest or relationship with any competitors during the term. |
| Required Suppliers | Franchisees must use approved suppliers for products, inventory, supplies, uniforms, tools, equipment, signs, telephone and internet equipment, advertising materials, and other items. For the Software System, the designated supplier is currently ZorWare. Franchisees must purchase business management software (GGPro) and Technology Package (Qvinci, FranConnect, Office365 accounts, NPS product) from the franchisor or its designee. Franchisees must also use an approved call center provider (currently ProNexis) and a third-party bookkeeping vendor, and must license Quickbooks Online from Intuit Limited. |
| Supply Restrictions | Franchisees may not contract with alternative suppliers for products/services for which the franchisor has designated a supplier. To use a non-approved supplier, franchisees must provide 30 business days' prior written notice and obtain prior written approval; unapproved supplier costs (inspection/testing) are charged to the franchisee. |
| Franchisor Revenue from Suppliers | In 2020, ProTradeNet's predecessor PTNLLC had revenue of $282,289 (approx. 3% of total revenues of $8,792,535) from Grounds Guys franchisee purchases. ZorWare had revenue of $840,648 (approx. 13.42% of total revenues of $6,262,426) from franchisee initial training and maintenance/monthly support payments. Predecessor had revenue of $125,523 (approx. 2.06% of total revenues of $6,108,012) from franchisee purchases from approved suppliers or directly. Supplier rebates to ProTradeNet ranged from 0.5% to 35% of suppliers' annual billings to franchisees in 2020. |
Financing (Item 10)
| Detail | Information |
|---|---|
| Financing Available | Yes |
| Description | The franchisor may finance a portion of the initial franchise fee for qualified prospective franchisees. Standard financing is up to 70% of the initial franchise fee (up to 80% in some cases). Interest rates are based on credit score: under 600 = 12%; 600-649 = 11%; 650-699 = 10%; 700+ = 9%. Repayment terms range from up to 5 years (loans under $45,000) to 9 years (loans over $150,000). A security interest in all business assets is required. The franchisor may also, in limited circumstances, finance a portion of a renewal fee at 12% interest. |
The Grounds Guys Franchise Earnings — Item 19
Past financial performance does not guarantee future results. Individual results will vary.
The Grounds Guys Litigation & Risk Flags
Litigation and bankruptcy data is sourced from Items 3 and 4 of the FDD. Always verify current status directly from the most recent FDD.
The Grounds Guys System Growth
The Grounds Guys currently operates 183 franchised locations and 0 company-owned units. Unit count data is sourced from Item 20 of the FDD.
Unit History (Item 20)
| Year | Opened | Closed | Total |
|---|---|---|---|
| 2018 | 39 | 42 | 162 |
| 2019 | 38 | 28 | 160 |
| 2020 | 45 | 14 | 183 |
Transfers: 4 transfers in 2018, 5 transfers in 2019, 1 transfer in 2020 | Closures: 42 outlets ceased operations (terminations + other reasons) in 2018; 28 in 2019; 14 in 2020
State Registrations
Registered in 1 states: Maryland
The Grounds Guys Franchise — FAQ
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