FDD-based startup cost, franchise fee, revenue, profit, SBA default rate, and investment risk signals for THE GROUNDS GUYS.
Based on 2025 FDD · 11 filings in corpus
Cost and profit at a glance
Based on FDDIQ's FDD corpus, a THE GROUNDS GUYS franchise shows an estimated initial investment of $75K – $225K. Reported owner economics show $90K. Use the links below to compare the cost, revenue, SBA loan history, and ROI against other franchises before you request the full FDD.
Quick fee read: $35K franchise fee · 5.0% royalty/ad burden. These figures are directional screening data, not a substitute for reading the current FDD and speaking with existing operators.
THE GROUNDS GUYS requires a total initial investment of $75K to $225K (midpoint approximately $150K), with an initial franchise fee of $35K. The ongoing fee burden is 5.0% (5% royalty plus 2% advertising fund). This is below the industry average of approximately 15.5%, leaving more margin for the operator.
According to Item 19 of the 2025 FDD, the median revenue for THE GROUNDS GUYS locations is $599K. The implied franchisee EBITDA is approximately $90K, based on the margin assumptions disclosed in the FDD. The estimated cash-on-cash return is 59.9% with a payback period of approximately 1.7 years.
THE GROUNDS GUYS operates approximately 225 franchised units. Unit count is relatively stable with a 1.4% year-over-year change. The SBA 7(a) loan default rate of 38.4% is above the franchise industry average of approximately 7.2%, suggesting elevated financial risk for franchisees relying on debt financing.
Prospective franchisees should verify all figures against the most recent FDD, conduct validation calls with multiple existing franchisees, and consult with a franchise attorney before signing any agreement.
Analysis based on 2025 FDD filing. FDDIQ Editorial Team · Methodology
Estimated using sector-average margins. Actual franchise economics vary by location, operator, and market conditions.
Industry averages based on FranchiseIQ corpus benchmarks. ▲ = better than avg, ▼ = worse.
Real lending data from SBA 7(a) loans (2013-2026). 240 loans across 40 states.
Source: SBA 7(a) loan data via FOIA. Default rate = charged-off loans / total originated. Industry avg default rate ~7.2%.
Common questions buyers ask about THE GROUNDS GUYS, answered from FDD and SBA data.
The total initial investment for a THE GROUNDS GUYS franchise ranges from $75K to $225K, according to their Franchise Disclosure Document.
THE GROUNDS GUYS charges a 5% royalty fee on gross sales.
The initial franchise fee for THE GROUNDS GUYS is $35,000.
There are approximately 225 THE GROUNDS GUYS franchise locations as of 2023.
The median revenue for a THE GROUNDS GUYS franchise is $599K, with a cash-on-cash return of 59.9%, according to FDD Item 19 data.
THE GROUNDS GUYS has an SBA loan default rate of 38.4% based on SBA 7(a) loan data.
Whether a THE GROUNDS GUYS franchise is worth it depends on total startup cost, royalty burden, FDD Item 19 economics, SBA loan performance, and local operator execution. FDDIQ compares these signals against similar franchises so buyers can screen the opportunity before paying for diligence.
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