How Much Does a The Grounds Guys Franchise Cost?
Data from the 2024 Franchise Disclosure Document
Investment Summary
Total Investment
$89K – $235K
Franchise Fee
$35K
Royalty
5-6% of Gross Sales
Ad Fund
2.0%
Cost Breakdown
Initial Franchise Fee
The initial franchise fee for The Grounds Guys is $35K. This one-time payment covers the right to operate under the brand, access to proprietary systems, and initial training programs.
Total Investment Range
Opening a The Grounds Guys franchise requires a total investment of $89K – $235K. This range typically includes real estate or leasehold improvements, equipment and fixtures, initial inventory, signage, insurance, and working capital to sustain operations during the ramp-up period.
Working capital alone ranges from $5K to $30K.
Ongoing Costs
Beyond the initial investment, The Grounds Guys franchisees pay ongoing fees. The royalty structure is: 5-6% of Gross Sales. The advertising or brand fund contribution is 2.0% of gross sales. There is also a technology fee of $2K.
Net Worth & Liquid Capital Requirements
The Grounds Guys requires working capital of $5K – $30K to cover initial operating expenses. This is the liquid cash you should have available beyond the franchise fee and buildout costs.
What Can You Earn?
According to The Grounds Guys's Item 19 financial performance representation:
Median gross sales: $599K
This figure comes from Item 19 of the FDD. Gross sales are not the same as take-home profit. After deducting royalties, ad fund fees, rent, labor, and COGS, net income is typically a fraction of gross revenue.
How Do Banks View The Grounds Guys?
SBA Loans Issued
232
Default Rate
41.8%
The SBA (Small Business Administration) tracks loan performance for franchise brands. The Grounds Guys has 232 SBA-backed loans on record. The default rate is 41.8%, which is above the franchise industry average, suggesting higher lending risk. A lower default rate generally indicates that lenders view the franchise as a safer investment, though past performance does not guarantee future results.
Next Steps
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