The Grounds Guys Franchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
Analysis by FranchiseVerdict Research · Methodology
The Grounds Guys is a home-services franchise providing landscaping, lawn care, and grounds maintenance, plus snow removal, for homes and businesses. Franchisees run a crew-based operation managing recurring service accounts in a territory.
FranchiseVerdict summary · 2026
A THE GROUNDS GUYS franchise requires a total initial investment of $108K – $253K, including a $44K franchise fee. The 2026 FDD does not disclose unit-level revenue (no Item 19). SBA 7(a) loans show a 16.4% charge-off rate across 232 loans[1]. FranchiseVerdict grade: B (Above average), an editorial assessment, not investment advice. Run a live ROI scan →
Data last verified · figures per the 2026 FDD issuance
Overview
- Investment
- $108K – $253K
- 38th pct Home Services
- Avg gross sales
- N/A
- Outlet subset
- Royalty
- N/A
- Units
- 219
- 76th pct Home Services
- SBA charge-off
- 16.4%
- % of SBA 7(a) loans not repaid · median varies by category
Quick verdict · Home Services · color = vs category peers
Green = favorable by >10% vs Home Services avg · No shading = within ±10% · Red = unfavorable by >10% · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Bottom line
- COSTTotal investment $108K – $253K including a $44K franchise fee.
- RETURNSItem 19 discloses whole-unit average/median annual Gross Sales for two tenure cohorts (3+ years and less than 3 years in operation) for calendar year 2025; no net income/profit figures are disclosed.
- RISKVerdict B (Above average), verdict score 56/100 (higher is better). SBA loan charge-off rate of 16.4% across 232 loans (above the 16% franchise average, based on all SBA 7(a) franchise lending, 2010–2025).
- FLAGBankruptcy history disclosed in the FDD. Review Item 4 for details before proceeding.
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- The Grounds Guys SPV LLC
- Parent company
- Neighborly Assetco LLC
- Ultimate parent
- Nest Holdings LP (controlled by KKR)
- Predecessor
- The Grounds Guys LLC
- Prior franchisor entity
- CEO title
- Chief Executive Officer
- Michael Anthony Davis
- Incorporated in
- Delaware
- HQ
- 1010 North University Parks Drive, Waco, Texas 76707
- Auditor
- Ernst & Young LLP
- Audited financials
- Franchisor revenue
- $353.9M
- vs $321.2M prior year
Overview
About
- CEO
- Michael Anthony Davis
- Headquarters
- TX
- Founded
- 2010
- FDD year
- 2026
- States available
- 41
Can you afford it, and what does the money buy?
Entry cost runs 20% below the typical home services franchise.
Source: FDD 2026 · Items 5–7
FDD Item 7 · 2026 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $44K | $44K |
| Working capital (3–6 mo) | $30K | $50K |
| Equipment, build-out, other | $34K | $159K |
| Total initial investment | $108K | $253K |
Source: THE GROUNDS GUYS 2026 FDD, Items 5 and 7[2]. “Equipment, build-out, other” is computed as total minus disclosed line items above.
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $108K – $253K
- Top 40% of category vs category
- Liquid capital req'd
- $30K – $50K
- Middle of category vs category
- Franchise fee
- $44K
- Top 40% of category vs category
- Royalty
- License Fee tiered by prior-year annual Gross Sales: 6% o…
- Ad fund
- 2.0%
- typical 3–5%
- Total fee load
- 8.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Marketing / ad fund | 2.0% of gross sales |
| Technology fee | $1K |
| Transfer fee | $8K |
| Renewal fee | $5K |
| Total fee load | 8.0% of rev |
What do units actually make?
Source: FDD 2026 · Item 19
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
THE GROUNDS GUYS did not disclose financial performance in FDD Item 19. The ROIC and return models require Item 19 revenue. Without it all inputs are estimates. You can still run the calculator with your own assumptions by entering an expected revenue figure.
Returns model · single-unit ROIC
What would one THE GROUNDS GUYS unit return on the cash you put in?
Unlevered ROIC · per unit
Estimated return on your total franchise investment, before any debt financing.
37%
Within the 30–60% "attractive franchise" band
These models are for research and scenario planning only. Not investment advice. Actual results depend on your specific location, management, and market conditions. Consult a franchise attorney and accountant before signing any franchise agreement.
Item 19 · Source: 2026 FDD
Financial Performance
Item 19 discloses whole-unit average/median annual Gross Sales for two tenure cohorts (3+ years and less than 3 years in operation) for calendar year 2025; no net income/profit figures are disclosed.
Reported for a subset of outlets rather than the whole system
- Item 19 type
- Average and median annual Gross Sales by tenure cohort (3+ years vs less than 3 years)
- Sample size
- 161
- vs category median 32 · large
- Range (low → high)
- $35K→$3.6M
- Cohort dispersion (min → max)
- Reporting year
- 2025
- Fiscal year the figures cover
- Source filing
- FDD 2026
- Disclosed in the 2026 filing, covering 2025
- Transparency
- 4 / 10
- vs category median 4 / 10 · typical
Compared against 321 Home Services brands
Operator outlook
What the numbers say
Data-driven interpretation of this brand's financial disclosures, fee structure, and system trajectory.
Fee burden
Total ongoing fee load of 8.0% (near the Home Services average).
Disclosure
Item 19 reports Average and median annual Gross Sales by tenure cohort (3+ years vs less than 3 years) rather than annual gross sales, so unit revenue is not directly comparable.
Operator retention
System roughly stable (+3.8% 3-year CAGR) with 219 units.
Source: FDD Item 19 financial performance representations and publicly filed FDD data. Past performance is not indicative of future results. Verify all figures with the franchisor and current franchisees before making any investment decision.
vs Home Services averages
How The Grounds Guys Compares
Is the system healthy?
Source: FDD 2026 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 219
- Opened
- 12
- Last reporting year
- Closed
- 2
- Terminated
- 19
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 1
- Term expired, not renewed (per Item 20)
- Turnover rate
- 10.1%
- Company-owned
- 0
- Corporate units in the system
- % franchised
- 100%
- vs corporate-owned
- Net growth (3-yr)
- -4.4%
- Net unit change over 3 years
- 3-yr CAGR
- +3.8%
- Compounded over last 3 years
3-year detail · Item 20
- Opened (3yr)
- 12
- Closed (3yr)
- 2
- Terminated (3yr)
- 19
- Non-renewed (3yr)
- 1
- Transfers (3yr)
- 8
- Reacquired (3yr)
- 0
- Franchisor bought back
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 41 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 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
- Total loans
- 232
- Loan volume
- $39.8M
- Median loan
- $150K
- 50th percentile
- Charge-off rate
- 16.4%
- 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)
- 83.6%
- 5-yr charge-off
- 32.1%
- Loans approved 2021+
- Active lenders
- 28
- Defaults
- 38
- Typical loan rate
- 8.0%
- avg rate to borrowers
- Franchised industry avg
- 19.3%
- brand beats franchise avg ↓
- Jobs supported
- 1,091
- 2.7 per loan
- Lender concentration
- 81%
- top lender's share
Borrower mix: 88% went to startups / new businesses, 12% to established operators
Franchise vs independent — in landscaping services, franchised businesses charge off at 19.3% vs 13.3% for independents — franchising is associated with 45% higher SBA default risk in this category.
Vintage analysis
The Grounds Guys charge-off rate by loan vintage
Top lenders financing The Grounds Guys franchisees
Showing 3 of 28 lenders. The full breakdown — every lender, state distribution, interest rates & risk ratings — is in the SBA Lending Report below.
Explore lender portfolios on Bank Reports or regional data on State Reports.
Premium insight
SBA Lending Report
Deep-dive into The Grounds Guys's SBA lending history: lender network, geographic footprint, interest rates, and more.
SBA Lending Report
- Principal loss rate and NAICS industry benchmark
- 10 lenders with concentration factor
- Per-state charge-off rates across 15 states
- Startup risk premium and job creation velocity
- 14-year lending trend
- SBA 504 real estate/equipment data
Instant access. No subscription.
What could kill this investment?
SBA loans here charge off near the 16.0% national average.
Source: SBA 7(a) FOIA · FDD Items 3, 21
Risk analysis
FranchiseVerdict rating + FDD Items 3, 4, 8, 16, 21
Risk & Legal
Parent-level financials (KKR, net worth $2.95B, $154M net income) — brand's own equity not disclosed. Four litigation matters (one pending non-compete, three resolved) are modest for a 219-unit system. Disclosed bankruptcies are unrelated KKR portfolio companies, not the franchisor. Judged on solid operations.
Litigation (Item 3)
Pending: Rainbow International/Grounds Guys LLC v. Cheyenne Partners/Kitts (franchisee breach/non-compete, judgment for franchisor, on appeal). Prior: Argus Capital v. Grounds Guys (fraud claims, settled $15,000 to plaintiff); Grounds Guys v. Choi/Shadow Environment (breach of contract, settled); Grounds Guys v. Mellos (breach of contract, franchisor awarded ~$102,617 damages + ~$212,831 attorneys fees). Also an administrative consent order involving affiliate Window Genie predecessor (unrelated to franchisor).
Bankruptcy (Item 4)
Disclosed in last 7 years
No bankruptcy of the Franchisor itself; disclosure relates to bankruptcy proceedings of unrelated KKR portfolio companies (Marelli Holdings, The Collected Group, Envision Healthcare, Genesis Care, IPI Legacy Liquidation, Cafe Coffee Day) not involving the Franchisor.
Audited financials (Item 21)
Yes · Ernst & Young LLP
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
ⓘ These are the parent company's consolidated financials (the parent guarantees the franchisor), not this brand's standalone results — the figure reflects the whole corporate group, not this brand alone.
Supplier relationship · Items 8 & 16
- Franchisor sells you products: No
- Kickbacks from required suppliers: No
- Must buy proprietary products: No
- Restricted to system-approved products: Yes
Score breakdown · what drove the 56 / 100 verdict
- 01HIGH4 litigation matters, modest for 219 units
- 02MINORBankruptcies are unrelated KKR portfolio cos, not franchisor
- 03MINORParent-level financials — strong ($2.95B net worth)
- 04MEDAudited, Item 19 disclosed, +3.8% growth
Severity inferred from the FDD text · not a regulatory classification
What are you signing up for?
Ongoing fees run about 8.0% of sales (royalty + ad fund), before rent and labor.
Source: FDD 2026 · Items 11, 12, 17
FDD Items 12, 15, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 10 years |
|---|---|
| Renewal term | 10 years |
| Allowed renewalsℹ | 1 |
| Territory type | protected |
| Protected territory | Yes |
| Exclusive territoryℹ | No |
| Territory sizeℹ | Population-based, generally 125,000-500,000 |
| Online sales rights | Restricted |
| Franchisor can compete | No |
| Hire a manager? | Allowed |
| Owner-operator | Required |
| Non-compete (years)ℹ | 2 years |
| Non-compete (miles)ℹ | 25 mi |
| Right of first refusalℹ | Yes |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Curable defaultsℹ | 2 |
| Mandatory arbitration | No |
| Jury trial waiver | Yes |
| Governing law | Texas |
| Litigation count | 4 |
View Item 3 litigation summary
Pending: Rainbow International/Grounds Guys LLC v. Cheyenne Partners/Kitts (franchisee breach/non-compete, judgment for franchisor, on appeal). Prior: Argus Capital v. Grounds Guys (fraud claims, settled $15,000 to plaintiff); Grounds Guys v. Choi/Shadow Environment (breach of contract, settled); Grounds Guys v. Mellos (breach of contract, franchisor awarded ~$102,617 damages + ~$212,831 attorneys fees). Also an administrative consent order involving affiliate Window Genie predecessor (unrelated to franchisor).
Items 10, 11
Training & Operations
- Classroom training
- 40 hrs
- On-the-job training
- 8 hrs
- Training location
- Waco, Texas (or another location designated) plus online/virtual
- Ongoing training
- Required
- Field support
- 40 hrs/yr
- On-site visits per year
- Site selection
- Franchisee, with franchisor site-selection guidelines
- Franchisor financing
- Offered
- Item 10
- POS system
- GGPro
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: GGPro
Item 20 · call current owners
Franchisee Contacts
262 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
THE GROUNDS GUYS · FDD (2026) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a THE GROUNDS GUYS franchise?
The total investment to open a THE GROUNDS GUYS franchise ranges from $108K – $253K, with an initial franchise fee of $44K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do THE GROUNDS GUYS franchise owners earn?
THE GROUNDS GUYS does not disclose average franchise owner earnings in their FDD Item 19. Not all franchisors are required to make financial performance representations. We recommend asking existing franchisees directly about their financial experience.
What is Item 19 in the THE GROUNDS GUYS FDD?
The FDD section where a franchisor may disclose financial performance of its outlets. Disclosure is optional and formats vary; figures are typically gross sales, which is revenue before expenses, not profit. FranchiseVerdict extracts these figures directly from the THE GROUNDS GUYS FDD and qualifies whose outlets they describe.
What is THE GROUNDS GUYS's franchise failure rate?
Based on SBA 7(a) loan data, THE GROUNDS GUYS has a charge-off rate of 16.4% across 232 loans, meaning 16.4% of franchise loans were charged off. Charge-off rates are one proxy for franchise risk, though they do not capture all closures. This data comes from FOIA-sourced SBA lending records.
How many THE GROUNDS GUYS franchise locations are there?
As of their most recent FDD filing, THE GROUNDS GUYS has 219 total units in the United States, including 219 franchised units and 0 company-owned units. 12 new units were opened in the latest reporting year.
Is THE GROUNDS GUYS a good franchise to buy?
FranchiseVerdict rates THE GROUNDS GUYS as a B-grade franchise with a verdict score of 56 out of 100 (higher is better), 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.
For franchisors
Are you the franchisor?
If you represent THE GROUNDS GUYS, you can request corrections or provide updated information.
Other Home Services franchises
Compare similar franchise opportunities in the Home Services category
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.