The Grounds Guys SPV LLC; U.S. FDD issued April 1, 2026; start-up and conversion offers under the Franchise Agreement, with the Roll-In Addendum, Excluded Services Addendum, Option to Purchase Agreement, ProTradeNet Agreement, Software System User & Maintenance Agreement, and Call Center Program Agreement where applicable. Items 1, 3–8, 10–12, 15–17, and 19–22 were reviewed. Item 19 covers calendar 2025; Item 20 covers 2023–2025 and a first-quarter 2026 termination disclosure. Research checked July 27, 2026. Official context: The Grounds Guys franchise information, consumer brand overview, and the Neighborly brand page. No verified franchise-controlled public FDD was located, so FDD citations below are unlinked.
Sources: 2026 FDD, cover; Items 6, 7, 17, and 20, pp. 19–34, 66–80.
Which verified features can help, and which obligations can create friction?
The practical distinction is not “pros versus cons” by count. Each feature below can help a buyer under one operating profile while constraining a buyer with different staffing, capital, territory, or exit priorities.
Sequenced training and opening support
Verified fact: The FDD requires 84 hours of Phase I training, 40 hours of Phase II training, and 8–40 hours of field training for an owner or designated manager.
2026 FDD, Item 11, pp. 52–58; Item 6, pp. 21–22.
Limited Territory protection tied to performance
Verified fact: A compliant franchisee receives limited protection against another The Grounds Guys outlet in a defined Territory, while reserved channels and Key Accounts may operate inside it.
2026 FDD, Item 12, pp. 59–61; Franchise Agreement §§2 and 5.
Recurring fees and prescribed marketing spend
Verified fact: Standard License Fees are 5%–6% of weekly Gross Sales, the MAP Fee is 2%, and local marketing requires $25,000 in each of Years 1 and 2.
2026 FDD, Item 6, pp. 19–30; Item 7, pp. 31–34.
Required Software System and Call Center Program
Verified fact: The required operating stack links GGPro, Qvinci, FranConnect, Greenius, Microsoft accounts, reporting, scheduling, and year-round after-hours call handling through affiliated providers.
2026 FDD, Items 6, 8, and 11, pp. 19–21, 35–39, 47–50; Exhibits K and M.
Approved suppliers and ProTradeNet rebates
Verified fact: The franchisor may designate approved or single-source suppliers; ProTradeNet’s usual rebate allocation is 50% franchisee, 25% ProTradeNet, and 25% franchisor.
2026 FDD, Item 8, pp. 35–39; ProTradeNet Agreement, Exhibit J.
Item 19 evidence separated by operating tenure
Verified fact: Item 19 reports 2025 average and median Gross Sales for 105 businesses open at least three years and 56 businesses open less than three years.
2026 FDD, Item 19, pp. 71–73.
Active supervision, guarantees, and conditional exit
Verified fact: An owner or trained manager must supervise operations; renewal, transfer, and post-term competition are conditioned by the Franchise Agreement, approval requirements, fees, and covenants.
2026 FDD, Items 10, 15, and 17, pp. 42–43, 65, 66–70; Franchise Agreement §§4, 9, 10, and 14.
The system ended 2025 with 219 U.S. franchised outlets and no company-owned outlets. The FDD separately discloses 19 terminations in the first quarter of 2026. That count is a verification priority, not proof of a single cause: termination, transfer, non-renewal, and other cessation categories have different definitions.
What should a buyer verify before signing?
Use the current FDD, its amendments or quarterly updates, the Franchise Agreement, and interviews with current and former franchisees. The FTC’s franchise buyer guide explains why the contract, Item 19 substantiation, and Item 20 contacts require separate review.
What does Item 20 show about network direction?
Year-end U.S. franchised outlets increased from 226 to 229 in 2024, then declined to 219 in 2025. The line shows direction only; it does not identify outlet economics or franchisee satisfaction.
Year-end U.S. franchised outlets
Item 20 reporting dates: December 31 of each year. Company-owned outlets were zero throughout 2023–2025.
Interpretation: In 2025, Item 20 records 12 openings, 19 terminations, one non-renewal, and two other cessations. Buyers should reconcile those flow categories with the 19 additional first-quarter 2026 terminations.
Source: 2026 FDD, Item 20, Tables 1 and 3, pp. 74–79.
How broad is the Item 19 reporting population?
The two Item 19 cohorts include 161 of the 219 franchises operating at year-end 2025, or 73.5%. The remaining 58 current outlets were excluded because of opening timing, ownership transfer, or fewer than nine reporting months due to seasonality.
Current-outlet coverage in the 2025 Item 19 tables
Denominator: 219 U.S. franchised businesses operating on December 31, 2025.
Interpretation: Coverage is substantial and split by tenure, but the exclusions matter for a seasonal buyer or a buyer evaluating early-stage, transferred, or closed outlets. Item 19 reports Gross Sales only.
Source: 2026 FDD, Item 19, pp. 71–73. Calculation: 161 ÷ 219 = 73.5%; 58 ÷ 219 = 26.5%.
The mature cohort reported 2025 median annual Gross Sales of $533,092, and the newer cohort reported $294,312. Those figures do not deduct labor, vehicles, equipment, insurance, software, call-center charges, marketing, debt service, or owner compensation. The FTC Franchise Rule permits financial performance representations when they have a reasonable basis; it does not convert Gross Sales into owner earnings.
Who provides support, and where does operating dependence sit?
The Grounds Guys structure separates the contract counterparty, parent guarantee, management services, software, call handling, and purchasing arrangements. That division can provide specialized resources while requiring a buyer to understand which entity owes which obligation.
Support-and-control relationship map
Sources: 2026 FDD, Items 1, 6, 8, 11, and 21; Exhibits D, J, K, and M. The official commercial-services page illustrates the residential and commercial service channels described in Item 1.
Which buyer profile is more aligned with these trade-offs?
More aligned
- An active owner or operator with capacity to supervise crews, scheduling, estimates, customer service, and required reporting.
- A conversion buyer able to separate Excluded Services, validate Roll-In economics, and integrate existing vehicles, equipment, customers, and books.
- A buyer comfortable with prescribed systems, affiliate-provided technology, approved suppliers, structured marketing obligations, and performance monitoring.
- A long-horizon buyer whose capital plan includes seasonality, working capital, local marketing, technology, insurance, training, and a conditional resale process.
More likely to experience friction
- A buyer seeking passive ownership without a trained, directly supervising manager.
- An operator who needs unrestricted cross-territory solicitation, broad pricing discretion, or complete control over customer channels and data.
- A buyer whose budget assumes percentage fees are the only recurring obligations or whose liquidity is sensitive to minimum payments and seasonal demand.
- An owner prioritizing rapid, low-friction exit, minimal personal guarantees, or freedom to operate a competing grounds-care business after termination.
The strongest verified structural advantage is the defined combination of training, Manuals, Neighborly-managed support, required operating technology, call handling, and Item 19 data separated by tenure. The most material burden is the package of active supervision, recurring and minimum obligations, performance-conditioned Territory rights, affiliate dependencies, and constrained renewal or exit.
The model is most aligned with an engaged service-business operator who accepts standardized systems and can fund seasonality. It is most likely to create friction for a passive buyer or an operator requiring broad local discretion. Before signing, the highest-priority fact to verify is the Territory-specific Minimum Performance Standards and the reasons behind the 2025 contraction and first-quarter 2026 terminations.