Foliage Design SystemsFranchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
FranchiseVerdict summary · 2026
A Foliage Design Systems franchise requires a total initial investment of $44K – $64K, including a $20K franchise fee and an ongoing 6.0% royalty[2]. Per the 2023 FDD, average unit revenue was $681K[2]. Verdict grade: A. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2023 FDD issuance
Overview
- Investment
- $44K – $64K
- 10th pct Business Serv…
- Avg gross sales
- $681K
- 14th pct Business Serv…
- Royalty
- 6.0%
- 9th pct Business Serv…
- Units
- 22
- 23rd pct Business Serv…
- SBA default
- 0.0%
- system-wide median varies by category
Quick verdict · Business Services · color = vs category peers
Green = >15% above Business Services avg · No shading = within ±15% · Red = >15% below avg · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Each dollar invested generates 12.5x in gross revenue, well above the typical 1.5-2.5x range.
Franchising since 1980. Systems this mature have refined operations and brand recognition.
Bottom line
- Total investment $44K – $64K including a $20K franchise fee, 6.0% ongoing royalty.
- Average unit revenue of $681K/year.
- Verdict A (Top Quintile) with a risk score of 37/100.
- System contracting at -13.6% CAGR over 3 years. Investigate whether closures are franchisor-driven (consolidation) or franchisee-driven (economics).
Item 1 · who you're contracting with
The Franchisor
- Legal entity
- Foliage Design Systems Franchise Company
- CEO title
- Founder, Director, and CEO
- John S. Hagood
- Founder active
- Yes
- Original founder still leading the business
- Incorporated in
- FL
- HQ
- 7048 Narcoossee Road, Orlando, Florida 32822
- Auditor
- Manuel Naya Jr., CPA LLC
- Audited financials
- Franchisor revenue
- $519K
- vs $473K prior year
- Management churn noted
- Frequent turnover
- Item 2 disclosed frequent executive changes
Overview
About
Foliage Design Systems franchisees provide interior and exterior plant design, installation, and maintenance services to commercial and residential clients. Day-to-day work typically involves client consultations, plant selection and sourcing, installation/landscaping work, and ongoing maintenance scheduling. The business model is service-based, requiring local marketing, client relationship management, and hands-on horticultural or design labor.
- CEO
- John S. Hagood
- Headquarters
- FL
- Founded
- 1980
- FDD year
- 2023
- States available
- 14
FDD Item 7 · 2023 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $20K | $20K |
| Working capital (3–6 mo) | $4K | $7K |
| Equipment, build-out, other | $21K | $37K |
| Total initial investment | $44K | $64K |
Source: Foliage Design Systems 2023 FDD, Items 5 and 7[2]. “Equipment, build-out, other” is computed as total minus disclosed line items above.
Single-unit · estimated
Returns at a glance
Indicative numbers using FDD Item 7 / Item 19 inputs and category-benchmarked cost ratios. Full single-unit, 25-unit portfolio, and LBO models (with every input editable to stress-test your own scenario) live on the financials page.
Store EBITDA · annual
$109K
16.0% margin
Unlevered ROIC
182%
EBITDA / total invested capital
Payback
7 mo
cash-on-cash, unlevered
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $44K – $64K
- Better than avg vs category
- Liquid capital req'd
- $4K – $7K
- Better than avg vs category
- Franchise fee
- $20K – $20K
- Better than avg vs category
- Royalty
- 6.0%
- Gross Revenue · typical 6–8%
- Ad fund
- 1.0%
- typical 3–5%
- Total fee load
- 7.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 6.0% of gross sales |
| Marketing / ad fund | 1.0% of gross sales |
| Transfer fee | $5K |
| Total fee load | 7.0% of rev |
Financial Performance
- Avg gross sales
- $681K
- Per unit, per year
- Median gross sales
- N/A
- Item 19 type
- gross_sales
- Sample size
- 14 units
- vs category median 32 · small
- Range (low → high)
- $15K→$1.3M
- Cohort dispersion (min → max)
- Quartile band
- $96K→$897K
- Bottom 25% → top 25%
- Transparency
- 0 / 5
- vs category median 3 / 5 · below
Compared against 360 Business Services brands
Revenue is 12.5x the investment midpoint. At typical franchise margins, this suggests a payback under 3 years.
vs Business Services averages
How Foliage Design Systems Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 22
- Opened
- 0
- Last reporting year
- Closed
- 1
- Terminated
- 0
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 1
- Term expired, not renewed (per Item 20)
- Turnover rate
- 4.5%
- Company-owned
- 3
- Corporate units in the system
- % franchised
- 86%
- vs corporate-owned
- Multi-unit owners
- 28.6%
- Net growth (yr3)
- -5.0%
- Net unit change last year
- 3-yr CAGR
- -13.6%
- Compounded over last 3 years
3-year detail · Item 20
- Transfers (3yr)
- 0
- Projected new
- 1
- Franchisor's next-year forecast
- Continuity rate
- 95.0%
- Units that stayed open
- Termination rate
- 4.5%
- Franchisor-initiated terminations
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 24 states with active franchisees
The Territory Map
Derived from franchisee contact records. Shows states with at least one current operator. Not where the franchisor is registered to sell new units (that data is re-extracting in a future refresh).
States derived from franchisee contact records (FDD Item 20). Shows states with at least one current operator on file. Full state registration data (Item 12) will appear on a future FDD refresh.
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA loan disclosures. This brand has only 4 7(a) loans on file; statistical reliability is limited below 10 loans.
- Total loans
- 4
- Loan volume
- $305K
- Median loan
- $76K
- average
- Charge-off rate
- 0.0%
- rates vary by category · see methodology
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- N/A
- 5-yr charge-off
- N/A
- Loans approved 2021+
- Active lenders
- 3
- Defaults
- 0
Explore lender portfolios on Bank Reports or regional data on State Reports.
Risk analysis
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Foliage Design Systems presents CAUTION-level risk due to unit contraction, absence of financial disclosure (Item 19), minimal system size, and opacity around actual franchisee profitability—making it difficult to validate investment merit.
Litigation (Item 3)
No litigation required to be disclosed
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Manuel Naya Jr., CPA LLC
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Supplier relationship · Items 8 & 16
- Franchisor sells you products: Yes
- Kickbacks from required suppliers: No
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
- Can negotiate own supplier terms: No
Score breakdown · what drove the 37 / 100 rating
- 01MEDUnit decline of 5.0% YoY suggests system contraction and potential franchisee struggles
- 02MINORNo average revenue or net income disclosure (Item 19) prevents ROI validation and profitability assessment
- 03MED22 total units is extremely small—limited peer network, higher operational risk, and questions about franchisor viability
- 04MED6% royalty on undisclosed revenue creates uncertainty; franchisees cannot model break-even scenarios
- 05MINORInvestment range of $44.4K–$64.4K is wide ($20K spread), indicating inconsistent startup cost tracking
- 06MINOR10-year term locks franchisees into relationship with a contracting system with no performance guarantees
Severity inferred from the FDD text · not a regulatory classification
FDD Items 5, 6, 12, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 10 years |
|---|---|
| Renewal term | 5 years |
| Allowed renewalsℹ | 2 |
| Territory type | County lines |
| Protected territory | Yes |
| Exclusive territoryℹ | Yes |
| Territory population | 400,000 |
| Online sales rightsℹ | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Optional |
| Non-compete (years)ℹ | 2 years |
| Non-compete (miles)ℹ | 60 mi |
| Right of first refusalℹ | Yes |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Mandatory arbitration | No |
| Jury trial waiver | Yes |
| Governing law | Florida |
| Litigation count | 0 |
View Item 3 litigation summary
No litigation required to be disclosed
Items 10, 11
Training & Operations
- Classroom training
- 48 hrs
- On-the-job training
- 20 hrs
- Training location
- Orlando, Florida or at your Franchised Business
- Ongoing training
- Required
- Field support
- 8 hrs/yr
- On-site visits per year
Items 5 & 11
Franchisor Support
Item 20 · call current owners
Franchisee Contacts
31 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
Foliage Design Systems · FDD (2023) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Foliage Design Systems franchise?
The total investment to open a Foliage Design Systems franchise ranges from $44K – $64K, with an initial franchise fee of $20K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Foliage Design Systems franchise owners earn?
According to Item 19 of the Foliage Design Systems FDD, the average gross sales per unit is $681K. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
What is Foliage Design Systems's franchise failure rate?
SBA 7(a) loan charge-off data is not available for Foliage Design Systems (fewer than 10 loans on file). Charge-off rates are one way to gauge franchise risk, but not all franchise loans go through the SBA program. We recommend reviewing turnover and closure data in the FDD and speaking with current franchisees.
How many Foliage Design Systems franchise locations are there?
As of their most recent FDD filing, Foliage Design Systems has 22 total units in the United States, including 19 franchised units and 3 company-owned units.
Is Foliage Design Systems a good franchise to buy?
FranchiseVerdict rates Foliage Design Systems as a A-grade franchise with a risk score of 37 out of 100, based on our analysis of investment costs, revenue data, SBA loan performance, and growth trends. Our rating is based solely on publicly available FDD and government data; we recommend speaking with current franchisees before making any investment decision. This is not investment advice.
Data sourced from public FDD filings and SBA 7(a) FOIA records. Not financial advice.
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Data extracted from public FDD filings and SBA 7(a) loan disclosures (FOIA). This information is provided for research purposes only and does not constitute financial, legal, or investment advice. Verify all figures with the franchisor's current Franchise Disclosure Document before making any investment decision.