Verified — real FDD extraction
SBA-eligible · directory code S1128 since 2017
MONSTER TREE SERVICE
Other · independent · est. —
Monster Tree Service is a tree care franchise providing tree trimming, removal, stump grinding, and plant health care. A franchisee operates an equipment-heavy service business with bucket trucks, chippers, and trained crews, serving residential and commercial property owners.
MONSTER TREE SERVICE net unit count declined -38.2% from 2023–2025 per its FDD Item 20.
New to franchising? Start here
A franchise is a business where you (the franchisee) pay a company (the franchisor) for the right to open and run a location using their brand and system — think a local Anytime Fitness or Taco John's owned by a small-business owner, not the corporation.
Before you can buy in, U.S. law requires the franchisor to give you a Franchise Disclosure Document (FDD) — a long legal filing covering its fees, finances, and history. The numbers on this page come straight from that document:
- Franchise fee — the one-time cost to buy in.
- Royalty — the ongoing cut of your sales you pay the franchisor.
- Item 20 — how many locations opened and closed, the basis for our verdict (from Proven & strong down to Distressed — or Too new to judge).
The verdict
Showing strain
Distress
The disclosed record shows weakness — shrinking units, elevated exits, or churn — worth reading closely before going further.
Exit rate · latest year
24.4%
fiscal 2025, per Item 20
Cost to open
$335K–$490K
Item 7 total investment range
SBA loan defaults
10.5%
vs 14.8% avg across rated brands
Behind the verdict
the record, factor by factor · Item 20
3-yr trend · Item 20 Table 1
terminations + ceased-ops vs. all exits · Table 3
transfers vs. base · Table 3
actual vs. projected openings · Table 5
Item 19 disclosure + completeness
Systemwide units
2023–2025
Survival record
FDD Item 20 · outlet status by year
In fiscal 2025, 43 of 176 franchised outlets left the system — a 24.4% annualized exit rate. Not every exit is a failure — but this is the measurable floor.
Show the outlet tables ↓Hide the evidence ↑
| Status (FTC) | 2023 | 2024 | 2025 |
|---|---|---|---|
| Outlets at start | 250 | 217 | 176 |
| Opened | 15 | 10 | 1 |
| Transfers | 9 | 6 | 11 |
| Terminations | 33 | 11 | 5 |
| Non-renewals | 0 | 0 | 2 |
| Reacquired by franchisor | 0 | 0 | 0 |
| Ceased — other reasons | 15 | 37 | 36 |
| Outlets at end | 217 | 176 | 134 |
| Net change | -33 | -41 | -42 |
The lender's view
SBA 7(a)/504 loan performance · FY1991–present
Banks have made 97 SBA-backed loans to MONSTER TREE SERVICE franchisees since 2016. Of the 57 that have resolved, 10.5% were charged off (defaulted) rather than paid in full, versus 14.8% across 576 rated brands.
10.5%
6 of 57 resolved defaulted
44.0%
avg. charged-off $ ÷ approved $
4.6%
default rate × loss severity
$476,917
what recent franchisees borrowed
31 mo
approval → charge-off, defaulted loans
23 vs 20
distinct banks still lending
Charge-off rate by loan approval year (%)
Loan performance by state
SOURCE: SBA 7(a)/504 FOIA LOAN DATA (DATA.SBA.GOV), FY1991–PRESENT · MATCHED TO MONSTER TREE SERVICE BY FRANCHISE NAME · RESOLVED = CHARGED-OFF + PAID-IN-FULL
The owner's side of the deal
FDD × federal loan record
A typical MONSTER TREE SERVICE buyer since 2020 borrowed $477K through SBA — about $67K a year in debt service. Against the brand's own disclosed median unit revenue of $549K, that is 12.1% of every dollar the store takes in — before rent, payroll, food, or royalty.
Who finances it
Stearns Bank National Association
13.5% of this brand's loans
That lender charges off 11.7% of its loans to other franchise brands, vs 14.8% nationally.
Who buys it
67.0%
first-time franchise owners
The rest already owned at least one other franchise. Across the corpus, brands bought mostly by repeat operators charge off at roughly 10% versus 17% for brands sold mostly to newcomers.
Does experience help here?
−7.6pp
multi-unit vs single-unit owners
Owners of multiple units default at 5.9%; single-unit owners at 13.5%.
Computed from 97 SBA 7(a)/504 loans to MONSTER TREE SERVICE franchisees joined to the brand's own FDD. Debt service assumes level amortization at the average disclosed term and rate. A lender's rate excludes its loans to this brand, so it reads the lender, not the brand.
What it costs — and what it drags
FDD Items 5–7 · fees, investment, royalty
Buying in means a $50K franchise fee (Item 5) and a total investment of $335K–$490K (Item 7). The franchisor publishes an earnings claim (Item 19) — read its methodology closely.
To open (Item 7)
$335K–$490K
all-in investment range
Franchise fee (Item 5)
$50K
upfront, one-time
Royalty (Item 6)
6.5%
of sales, ongoing
Your figure — cross-check against this brand's Item 19 and current-owner validation.
Royalty you'd pay / yr
$65K
6.5% of sales, before profit
Over a 10-yr term
$650K
royalties alone, excl. ad fund
This is not profit. It's the only money the FDD actually pins down — what you put in, and the royalty you owe on every dollar of sales. Your real take-home depends on labor, rent, food cost, and ramp-to-breakeven, none of which any FDD discloses.
Build a real pro-forma for MONSTER TREE SERVICE with an independent CPAModeled risk
FDD Risk Score · modeled from the public record
Modeled from the public record, this brand looks riskier than 79% of systems we score.
Risk percentile
79 / 100
Measured
Modeled SBA charge-off
17.3%
Observed SBA charge-off
10.5%
Top drivers: Item 20 exit rate (raises) · Share financed by high-loss lenders (lowers) · Net unit growth (raises) · Single-lender dependence (raises). 50+ resolved loans and complete disclosure data — the score is checkable against the brand's observed rate. A linear scorecard built from this brand's own disclosure figures plus the federal loan record behind its franchisees; full spec and cross-validated accuracy on the methodology page. A score is context, not a verdict.
Distress signals
news-sourced · bankruptcies, closures, lawsuits
No recent closures, bankruptcies, or major lawsuits found in the news for MONSTER TREE SERVICE. That's a good sign — but it reflects news coverage, not a guarantee.
A broker is paid by the franchisor to place you. An independent CPA is paid by you — and the job is pressure-testing MONSTER TREE SERVICE's numbers, including talking you out of a bad deal.
Talk to an independent CPA before you buy →MONSTER TREE SERVICE franchise questions, answered from the filings
What percentage of MONSTER TREE SERVICE franchises closed last year?
In MONSTER TREE SERVICE's latest FDD Item 20 (fiscal 2025), 43 of 176 franchised outlets left the system — an annualized exit rate of 24.4%. That counts terminations, non-renewals, and "ceased operations — other reasons." There is no official failure rate, and not every exit is a failure, but this is the measurable floor.
How much does a MONSTER TREE SERVICE franchise cost?
Per MONSTER TREE SERVICE's 2026 FDD, buying in requires an initial franchise fee of $50K (Item 5) and a total initial investment of $335K–$490K (Item 7).
What royalty does MONSTER TREE SERVICE charge?
MONSTER TREE SERVICE charges an ongoing royalty of 6.5% of gross sales, per Item 6 of its 2026 FDD.
Does MONSTER TREE SERVICE disclose earnings (Item 19)?
Yes — MONSTER TREE SERVICE makes a financial performance representation in Item 19 of its 2026 FDD, reporting a median unit volume of $549K. Read it closely: franchisors choose which units and which metrics to include.
How often do SBA loans for MONSTER TREE SERVICE franchises default?
Across 97 SBA-backed loans to MONSTER TREE SERVICE franchisees since 2016, 6 of the 57 that have resolved were charged off — a 10.5% default rate, versus about 14.8% across all rated franchise brands. This is the lender's-eye view of franchisee failure, drawn from public SBA 7(a)/504 FOIA data and independent of the franchisor's own disclosures.