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The Grounds Guys Franchise Costs & Fees

Date of Incorporation: 2010
Franchising Since: 2010
Headquarters: Waco, Texas

Business Description: The Grounds Guys LLC, is the franchisor. The franchised business offers commercial, residential and municipal property maintenance and landscaping services.

Franchise Offer: Franchisees will offers services to the general public, including residential and commercial customers, and the services are offered in a developed market. The franchisee will compete with other grounds care, landscaping, lawn care, irrigation, and snow and ice control businesses that provide similar services directly or through franchisees.

Financial Assistance: The franchisor may agree to finance a portion of the initial franchise fee for qualified prospective franchisees under specific terms and conditions.

Training and Assistance: The franchisee and 1 other person will be provided Phase I and Phase II training at no additional cost. At least one owner or designated manager must attend and complete Phase I and Phase II training to the franchisor’s satisfaction. The franchisor may, but is not obligated to provide 5 hours of Phase I training which may be conducted at a location of the franchisor’s choose or via webinar/video conference. Phase II training is held at the franchisor’s offices in Waco, Texas and lasts 5 to 8 days. All travel and living expenses are the franchisee’s responsibility. Additionally, within 14 days of attending Phase II training, the franchisee must complete approximately 1 to 5 days of field training at a franchised business selected by the franchisor. The franchisee must attend, every year the annual training or conference event specified by the franchisor currently referred to as “Reunion” and any other training as designated, including a “refresher” training course or advanced training course.

Territory: The franchisee will not receive an exclusive territory. The franchisee will receive the right to operate a THE GROUNDS GUYS® business at a location within their territory that meets the franchisor’s site selection guidelines. The franchisee will receive limited territory protection and no territorial rights beyond the Territory.

Term of Agreement and Renewal: The length of the initial term is 10 years from the effective date of the franchise agreement. If the franchisee meets the conditions, they may renew their business for one additional 10-year term.

Obligations and Restrictions: If the franchisee is an individual, they must directly perform or supervise the operation of the business unless otherwise agreed. Direct, on-site supervision may be performed an individual who has successfully completed the training program. The franchisee must honor our warranty policies for installations, repairs and replacements as described in the Manuals. The franchisee cannot have an interest or relationship with any competitors.

Estimated Number of Units: 196

Investment Tables:
Initial Investment
Name of Fee Low High
Initial Franchise Fee $35,000 $35,000 +$350 per 1,000 additional population above minimum
Software Fee $1,920 $1,920
Vehicle $4,000 $50,000
Equipment, Supplies, Inventory $16,300 $36,300
Insurance $1,200 $5,000
Advertising & Local Marketing Spending $7,500 $25,000
Training, Travel, Lodging & Food $2,250 $4,850
Deposits, Permits & Licenses $50 $1,000
Professional Fees $250 $5,000
Real Estate $0 $6,000
Additional Funds - 3 months $5,000 $40,000
ESTIMATED TOTAL $73,470 $200,070
Other Fees
Type of Fee Amount
License Fee 7% of Gross Sales.
MAP Fee 2% Gross Sales.
Advertising Cooperative Not to exceed 8% of Gross Sales.
Software System Monthly Fees $160 per month per license.
Software System Optional Mobile Application Monthly Fees $50 per company and an additional $10 per user.
Call Center Services Monthly Fees One-time Set Up Fee: $249

Monthly:
Tier One: $.98/Minute
Tier Two: $.93/Minute
Tier Three: $.88/Minute
Tier Four: $.84/Minute
$50 minimum Monthly Fee.
Annual Convention $1,000 or less per registrant.
Transfer Fee Greater of $5,000 or 5% of the sales price.
Late Fees $10 per day.
Dishonored Check or ACH Draft $25
Interest 12% on unpaid balances.
Failure to Maintain Insurance Actual cost and a reasonable fee for expenses incurred.
Audit Cost of audit, expenses, amount owed, plus interest and late fees.
Renewal Fee $5,000
Amendment Fee $250
Unapproved Suppliers Out-of-pocket costs of inspection or testing.
Indemnification and attorneys’ fees and costs Varies.
Tax Reimbursement Varies.
Franchisor Employee Training Fee $7,500
Electronic Mail First year is free and then billed $25 annually. Additional email accounts are $25 per account, billed annually, with a one-time $50 setup fee per account.
Key Accounts/Management Fee Up to 5% of total Gross Sales.
Fees for Supplemental and Additional Websites Annual fee of up to $15 for the domain name, plus a monthly fee of up to $30 for the website initially.

The above information has been taken from the FDD of The Grounds Guys. Year of FDD: 2016

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