Monster Tree Service Franchise Costs, Fees & Owner Salary (2023)

Monster Tree Service is a pioneering brand in the tree care industry, offering a full spectrum of tree pruning and removal services. Founded in 2008 in Fort Washington, PA, by entrepreneur Josh Skolnick, the company swiftly established itself as a significant player in the tree care market. Recognizing the potential for scalable growth, Monster Tree Service initiated its franchising model in 2012, allowing it to expand its footprint across the United States rapidly.

As of now, the franchise operates in multiple states, providing a wide range of services including tree pruning, removal, stump grinding, shrub maintenance, and plant healthcare, among others​​​​. Situated in Doylestown, PA, the company's corporate office oversees its vast network of franchises, ensuring consistency in quality and service delivery across all locations​​.

Monster Tree Service differentiates itself from the competition by targeting the fragmented "mom-and-pop" market segment, offering a home-based franchise opportunity that eliminates the need for a physical storefront.

This strategic approach not only reduces overhead costs but also allows for scalable growth, multiple revenue streams, and a variety of investment options for franchisees​​. What sets Monster Tree Service apart is its commitment to combining professional arboricultural care with a business model designed for success in the $29 billion tree care industry.

Initial Franchise Fee

The Franchise Fee for a standard territory with a population of 200,000 individuals is $49,500, payable in a lump sum upon signing the Franchise Agreement. Additional population can be purchased for a cost of $0.25 per person​​.

Royalty Fees

The Royalty Fees are structured as follows:

• 6.5% of the first $1,000,000 of Gross Revenue in the current calendar year
• 5% of Gross Revenue from $1,000,001 to $2,000,000 in the current calendar year
• 4.25% of Gross Revenue from $2,000,001 to $3,000,000 in the current calendar year
• 3.5% of Gross Revenue in excess of $3,000,000 in the current calendar year

The Royalty Fee is paid weekly, based on the greater of the applicable percentage or the Minimum Royalty Fee​​​​.

Local Marketing

Franchisees are required to spend at least $33,000 or 10% of the preceding calendar year's Gross Revenue per calendar year on Local Marketing​​.

Proprietary Software

A monthly fee ranging from $115 to $500 for access to proprietary Customer Relationship Management (CRM)/Estimating/Job Costing software.

Pre-Opening/Grand Opening Marketing

A one-time fee of $6,000 for pre-opening and grand opening marketing efforts.

Transfer Fee

A general transfer fee of $10,000 is payable if you propose to sell the business assets or an ownership interest in the legal entity. Additional fees apply if a third-party broker is involved.

Renewal Fee

A renewal fee of $2,000 per population of 100,000 in the Territory or $5,000, whichever is greater, is due when signing a successor Franchise Agreement.

The franchisor provides a structured training program for franchisees, which includes the following components:

Initial Training

• A pre-opening training program is offered to the franchisee and designated employees, focusing on the necessary skills for fulfilling responsibilities required by the system.
• The duration and content of the training may vary based on the trainee's prior experience.
• Successful completion may require passing tests to establish proficiency in various areas designated by the franchisor.
• The franchisor reserves the right to terminate the agreement if a trainee does not meet the required standards during this initial training.

Additional Training

• After the franchised business opens, additional required and optional training programs are made available at designated times and locations.
• These programs are deemed necessary by the franchisor, and designated individuals are required to successfully complete them.

Training Methods

• Training can be provided in person, by video, via the internet, or by other means as determined by the franchisor.
• The training may be performed by the franchisor, its affiliates, or third parties.

Training Fees

• The franchisor may charge a training fee for additional trainees beyond the maximum number designated for a program, for remedial training due to non-compliance with brand standards, for re-training, or for optional training programs.

Travel Expenses

• Franchisees are responsible for all travel expenses, living expenses, wages, and other expenses incurred by trainees for all training sessions, including the initial training.
• If training is conducted at a location other than the franchisor's headquarters, franchisees may also need to cover the travel, meal, and lodging expenses of the franchisor's trainers.

Training Assistance

• Franchisees are expected to provide reasonable assistance in training or assisting other franchisees after their business opens, with reimbursement for reasonable costs and expenses provided by the franchisor.

The franchisor provides a protected territory during the term of the Franchise Agreement, assuming full compliance with the terms, including certain Minimum Performance Requirements and the obligation not to service customers outside of the territory. "Protected" means the franchisor will not operate or authorize others to operate under the same marks and system within the franchisee's territory, except as specified.

However, franchisees do not receive an exclusive territory and may face competition from other franchisees, franchisor-owned outlets, or other distribution channels or brands controlled by the franchisor.

A typical territory consists of approximately 200,000 individuals and is defined using postal zip codes. The population for a given territory may vary based on factors determined by the franchisor, such as geographic size.

Franchisees are prohibited from performing services or selling products related to the franchised business outside of their territory without prior written consent from the franchisor. Solicitation or advertising to customers outside of the territory is also restricted unless permission is granted by the franchisor​​​​​​​​.

Franchisees are required to designate an individual responsible for the day-to-day operational performance of the Franchised Business, referred to as the "Key Person." This individual must have the authority to make all decisions regarding the Franchised Business and is required to successfully complete the franchisor's initial training program. 

The Key Person must work on the premises at the business office. If an owner does not serve as the Key Person, then the General Manager of the Franchised Business must assume this role. The General Manager may also act as the primary salesperson​​.