Helping hands

For the previous 13 years, Rachel and Brad Bell had struggled to run their company, Brad's Lawn Service. “We didn’t have any systems. Brad was still on the truck. It wasn’t really worth anything. It was almost like a hobby,” Rachel recalls. Brad agrees. “We were looking for ways to grow our company and felt like we were running into a brick wall.”

Since the couple launched The Grounds Guys of Owensboro, Ky., in 2011, their sales have quadrupled to $450,000 in 2014, a 35 percent increase over the previous year. The Bells have bids out for a few big contracts that, if they come through, will grow their company to more than $700,000 in sales in 2015. And Brad says they’re thinking about expanding into another market.

“We have control of our business now as opposed to before when we didn’t know how. We felt like we were lucky to make money. Now we know if we take path XYZ it will lead to profit. We’re not shooting darts at a dart board,” Rachel says.

Matthew Haller is senior vice president, communications and public affairs for the International Franchise Association, a trade group for the franchise industry based in Washington, D.C. He explains that franchisors are the parent companies that create a concept, and franchisees are companies that buy into that concept in order to operate their own business under the corporate brand.

In the United States, according to statistics provided by the IFA, there are 21 franchisor companies/concepts in the landscape industry. Of those, the top three franchisors by number of units are Lawn Doctor, U.S. Lawns and Weed Man. The franchise landscape industry segment is growing. The total number of franchised units grew at a compound annual rate of 4.9 percent between 2001 and 2013, to reach an industry high of 1,400 landscape franchisees in 2014, according to the IFA.

In the landscape market, the cost of buy-in usually includes a one-time license or franchise fee of, on average, $30,300. Once established, franchisees pay a royalty, usually as a percentage of gross sales, back to the franchisor. In the landscape market, the average royalty in 2014 was 8 percent.

“Becoming a franchisee gives you an opportunity to follow a proven, structured, scalable model whereby you can have a stronger chance of success than a non-franchised business,” Haller says. “By its very nature, you’re drawing on a system that has other franchises that you can learn from across the brand – learn what’s working, what’s not – to help you be successful in your own region.”

This has proven true for the Bells who, through their franchise agreement with The Grounds Guys, gain access to marketing assistance, operational training, use of the company trade name, uniforms and branding, software systems and a franchise consultant who functions as a business coach and helps the couple formulate bids for large contracts. Most important, the Bells say, is the support from other franchisees.

“Our national convention every year is called Reunion. It’s one big family. As soon as we started meeting other franchisees, there was such a connection,” Rachel says.

To illustrate the bond and support between franchisees, she relayed the story of how this past summer, in the peak of landscape season, one of the franchisees had a death in the family.

While he took time to grieve, another franchisee “drove up and serviced all his accounts for the week,” she says. “You are not going to get that when you’re on your own. Your competition is not going to do that for you.”

The author is a freelance writer based in Mount Vernon, Wash.

Story by Stacie Zinn Roberts | Franchise round-up by Kate Spirgen

Nutri-Lawn

• Location: Mississagua, Ontario
• Established: 1986
• No. of franchises: More than 25 corporate locations
• Services offered: Fertilization and weed control programs, grub control, chinch bug control, topdressing, aerating, overseeding, mosquito control, and tree and shrub feeding. Some locations have irrigation divisions.
• Service area: Canada
   

Total cost

• Franchise fee: $28,000, with conversion fees determined on an individual basis
• Royalties: 6 percent
• Financial assistance: None
• Equipment: Equipment packages are typically bundled and leased for startups.
• Training: Training is included in the franchise fee.
• Marketing: 1.5 percent shared ad fund contribution
• Total investment: $80,000 to $90,000

Spring-Green

• Location: Plainfield, Ill.
• Established: 1977
• No. of franchises: 130
• Services offered: Lawn and tree care services
• Service area: 26 states in the U.S.
   

Total cost

• Franchise fee: $30,000 to $40,000
• Royalties: 5 percent up to the first $250,000, 4 percent for $250,000 to $500,000 and 3 percent for $500,000 and up. Royalties following the first year vary between 10 and 8 percent, based on revenue. Franchisees eligible for the Green Industry Roll-in Program pay a reduced royalty fee for the first 12 months. Spring-Green applies up to $10,000 for local marketing and advertising expenditures in second full year.
• Financial assistance: Loan program ranging from $25,000 to $100,000.
• Equipment: New equipment can be purchased through Spring-Green or direct from vendors and can be fit to meet brand standards with Spring-Green decaling.
• Training: A one-week training program is included in the franchise fee.
• Marketing: $25,000 local marketing program
• Total investment: $83,663 to $95,033
   

Christmas Décor

• Location: Lubbock, Texas
• Established: 1986
• No. of franchises: 325
• Services offered: Primarily exterior holiday display design, installation, maintenance and removal
• Service area: U.S. and Canada
   

Total cost

• Franchise fee: $9,900 for new or converted business
• Royalties: 5 percent of annual income
• Financial assistance: Some financing is available.
• Equipment: There is no equipment fee, but there is an initial order of materials necessary such as lights and greenery. That ranges from $7,000 to $12,000, depending on the franchisee’s first season goals.
• Training: Training is included in the franchise fee. Franchisees get two seats in an initial five-day training and a seat at the annual conference.
• Marketing: A 1-percent fee is charged for the Marketing Development and Assistance Fund.
• Total investment: $17,000 to $40,000
   

The Grounds Guys

• Location: Waco, Texas
• Established: 1987
• No. of franchises: 176
• Services offered: A range of lawn care, site enhancement, tree planting and moving, snow/ice removal and irrigation in both residential and commercial sectors
• Service area: U.S.
   

Total cost

• Franchise fee: $27,146 to $49,008, based on the population in the territory
• Royalties: Ranges from 2.5 to 7 percent of income
• Financial assistance: The Grounds Guys will finance 70 percent of the franchise fee internally.
• Equipment: Varies
• Training: No fee
• Marketing: Included in the fee
• Total investment: The total cost ranges from $72,490 to $205,090 for a new business and $30,000 to $100,000+ for a conversion, depending on whether the existing business already has trucks, trailers, equipment and/or an existing business location.
   

Weed Man

• Location: Oshawa, Ontario
• Established: 1970
• No. of franchises: More than 260
• Services offered: Weed, insect and disease control, fertilization, topdressing, liming, seeding, grub control
• Service area: Canada, US, United Kingdom
  
  

Total cost

• Franchise fee: The fee is $20,000 for a single territory and up to $33,750 for a double territory. The same applies to conversion businesses.
• Royalties: Weed Man royalty payments are based on a declining fee scale. When first starting out, royalties represent about 6 to 7 percent of total sales, and as the business grows, royalties represent 4 to 5 percent.
• Financial assistance: With prequalification, the company will provide loans up to $40,000.
• Equipment: Equipment fees are about $9,000 for the tank, spreader and truck wrap. The truck purchase is up to the franchisee.
• Training: The $4,600 training fee includes an initial 10-day training session at the corporate offices including administration, technical, marketing, business planning and budgeting. Training tools are also provided for employees.
• Marketing: None
• Total investment: With $60,000 in startup operating dollars, the amount is $103,000 to $118,000. To convert an existing business, it’s the same.
   

U.S. Lawns

• Location: Orlando, Fla.
• Established: 1986
• No. of franchises: More than 260
• Services offered: maintenance, irrigation, fertilization, pest control, tree care, seasonal color design and installation, snow and ice management, and custom services
• Service area: 43 states, including Alaska
   

Total cost

• Franchise fee: For a new business, the fee is $32,000. Existing landscape business owners receive a $5,000 to $10,000 discount based on their gross revenue as a landscape business.
• Royalties: Fees start at 6 percent of gross monthly sales and scale down to 3 percent, based on monthly revenue.
• Financial assistance: In-house financing is available for the franchise fee. Qualified applicants can finance 70 percent of the fee in-house on a 60-month note. Existing landscape businesses who qualify can finance 90 percent in house on a 60-month note.
• Equipment: Each franchisee buys or leases his or her own equipment, typically from a U.S. Lawn partner/vendor.
• Training: There is no training fee. All franchisees attend New Franchisee Training at the home office. They are assigned a regional franchise adviser who is their business coach.
• Marketing: There is a 2 percent marketing fund contribution that provides stationary, marketing collateral and direct marketing.
• Total investment: Depending on the equipment and vehicle needs of the franchisee, total investment ranges from $50,000 to $70,000. To convert a business, the cost is about $25,000.

Lawn Doctor

• Location: Holmdel, N.J.
• Established: 1967
• No. of franchises: Over 200 franchises representing nearly 500 territories
• Services offered: Lawn maintenance including aeration, fertilization, seeding, weed control, outside insect control and more
• Service area: U.S.
   

Total cost

• Franchise fee: $30,000 for a new business and $15,000 for a converting business
• Royalties: Franchisees pay a royalty of 10 percent of cash reciepts.
• Financial assistance: Qualifying franchisees can get internal financing up to $50,000
• Equipment: Lawn Doctor manufactures two proprietary pieces of equipment that franchisees can lease.
• Training: Franchisees pay an initial training, supply and support fee of $13,100, which provides onboarding support and an initial training program, as well as additional training and support for as long as they are franchisees.
• Marketing: The first year, there is a $40,000 marketing investment
• Total investment: The range for a new business is $81,548 to $99,998. The estimated investment for a conversion is $81,548.
   

Mosquito Joe

• Location: Norfolk, Va.
• Established: 2010
• No. of franchises: 55
• Services offered: Mosquito treatment and control
• Service area: 22 states from Oklahoma to New York
   

Total cost

• Franchise fee: $20,000
• Royalties: On net revenue, there is a 10 percent royalty. There is also a 2 percent brand development fee and a $390/month fee for software.
• Financial assistance: Financing is determined on an individual basis and is usually part of a second or third territory.
• Equipment: $10,000
• Training: No fee is charged, but franchisees go to Virginia Beach for four days of classroom and field training.
• Marketing: $35,000
• Total investment: The typical investment for a single territory is $75,000.