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The True Spring-Green Lawn Care Franchise Cost
Are you thinking of owning a professional lawn care franchise? If you’re looking for the TRUE Spring-Green Lawn Care franchise cost, then look no further. So, let’s list the breakdown of Spring-Green’s franchising costs and more!
Spring-Green: The Details
Spring-Green is a neighborhood-based lawn and tree care company that started in 1977 at Plainfield, Illinois. Also, it began franchising in the same year under the franchisor name of Spring-Green Lawn Care Corporation with an estimated 150 units. Spring-Green offers the franchising right to operate a quality lawn and tree professional service under its brand name. The services included are the following:
- Lawn Services
- Pest Services
- Tree and Shrub Services
Training Program
The initial training will take place before the franchisee starts operation. However, certain parts of training may also take place within 30 days of franchise opening. The following are required to undergo the initial training up to the franchisor’s satisfaction:
- Franchisee
- Managing Owner
- Proposed Operating Manager
The initial training will occur at either the franchisor’s headquarters or at a designated venue it selects. Furthermore, the franchisor may require the employees and other previously trained personnel to attend and complete other training programs.
The franchisees and their employees are expected to comply with the following training up to the franchisor’s satisfaction:
- Additional training
- Refresher training
- Other programs are provided by a third party.
Also, there will be instances where the franchisors require the franchisees or their operational manager to attend national and regional meetings.
Territory Agreement
As per the Franchise Agreement, franchisees are granted the right to operate their franchised business within the designated territory. However, the franchisor does not guarantee minimum area, in particular, will be included in the said territory. Also, the territory consists of a total of 60,000 single-family dwelling units (SFDUs). An additional fee of $0.50 per SFDU over 60,000 SFDU will be charged in case of expansion.
Also, if the franchisee is in full compliance with the given terms and conditions as per the Franchise Agreements, they will have the exclusive right of the following:
- Sell and authorize lawn.
- Tree care products and services.
- Other approved services to residential accounts within the territory.
Overall, the designated territory for the franchisee is final. Therefore, any form of solicitation or selling to residential accounts located outside is not allowed.
What’s Expected of the Franchisee
- As per the Franchise Agreement, the franchisee shall be under the franchisee’s direct full-time supervision or any trained and competent operations manager as long as the initial training program is completed.
- If franchisees are a corporation, LLC, or partnership, they must guarantee the obligation under the Franchise Agreement.
- Also, owners must be personally bound by and personally liable for the breach of every detail in the Franchise Agreement.
- The franchisees are prohibited from using or selling any product or service not authorized by the franchisor.
Terms of Agreement
The initial franchise term amounts to 10 years in length. But, if franchisees meet the requirements, the franchisor will grant one renewal term of 10 years on new terms and conditions. However, renewal is only applicable if the franchisor still gives franchises anywhere in the states where the territory is located.
Financial Support
The franchisor offers financial assistance for a part of the monetary fee. However, this is only provided under the franchisor’s full discretion and if the franchisee is determined to fit in the then-current criteria for Spring-Green Financing.
To provide additional financing options, the franchisor offers a lease program. It will purchase specific equipment and computer software where they will offer a leasing program to the franchisee. Furthermore, the franchisor entered into a financing program with Advantage Leasing Corp. (ALC), which provides the following:
- An amount between $25 000 and $100 000.
- If franchisees are a veteran of the U.S. Armed Forces and meet the VetFran Program requirement, the franchisor offers up to $5000 of the initial franchising fee to start-up expenses. This is to start up expenses the franchisor designates or approves, including the initial marketing campaign fee.
Did You Know?
Before we dive into the actual breakdown of the Spring-Green Lawn Care franchise cost, let’s learn some fun facts about Spring-Green.
- Spring-Green was listed in the Top 10 Franchises to Buy in 2019.
- In 2020, Spring-Green Lawn Care was listed in Lawn and Landscape Magazine’s 2020 Top 100 Largest Companies in the industry.
- Spring-Green has been beautifying lawns and trees for over 43 years.
Spring-Green Lawn Care Franchise Cost Breakdown
Your Investment
Now that we’re done going over the essential details to know as a would-be franchisee let’s dive into the numbers. Finally, here’s the real Spring-Green Lawn Care franchising costs. The details listed below are compiled from Spring-Green’s 2020 FDD.
| Name of Fee | Low | High |
|---|---|---|
| Initial Franchise Fee | $25,000 | $40,000 |
| Production Vehicles, Equipment and Fixtures | $4,778 | $4,778 |
| Technology Equipment and Software | $1,915 | $1,915 |
| Opening Inventory and Supplies | $2,231 | $2,231 |
| Initial Marketing Campaign Fee | $25,000 | $25,000 |
| Initial Property Data Fee | $13,500 | $13,500 |
| Training Expenses | $1,208 | $1,838 |
| 3 Months’ Rent | N/A | N/A |
| Miscellaneous Opening Costs (incl. licenses and other prepaid expenses) | $1,350 | $2,000 |
| Additional Funds – 3 months | $15,000 | $15,000 |
| ESTIMATED TOTAL | $89,982 | $106,262 |
Other Fees
| Type of Fee | Amount |
|---|---|
| Royalty | Sliding scale of 10% to 8% of gross sales of the franchised business, except for reduced royalty rates under green associate program. |
| Advertising Fund Contributions | 2% of gross sales of the franchised business. |
| Regional Advertising Fee | If established, up to 2% of gross sales of franchised business. |
| Local Marketing Shortfall | Varies |
| Audit | Cost of inspection or audit. |
| Assignment Fee | 2.5% of gross sales of the franchised business within the 12 months immediately preceding the effective date, but no less than $5,000 and no more than $15,000. |
| National Advisory Council Assessment Fee | $20 per month for the months of April through November. |
| Indemnification | Varies under circumstances. |
| Interest | The greater of 1.5% per month or 3% over Bank of America prime rate, but not above the highest legal rate permitted by applicable law. |
| Lease of Equipment | $481 to $605 per month. |
| Management Fee | $300 per day plus costs and expenses. |
| Supplier Testing Fee | An amount not to exceed the cost of inspection and testing. |
| Lease of Computer Software License Fees | $91 per month. |
| Education Fee | $186 per month. |
| Ongoing/Refresher Training | Not currently charged. If implemented, it will be the then-current fee ($250 per day). |
| Property Data Fee | The franchisor’s or affiliate’s then-current fee. |
| Technology Fee | $92 per month. |
| Accounting Service Fee | If required, the franchisor estimates this cost to be $150 per hour. |
| Insufficient Funds | $100 |
| Failure to Report Gross Sales Fee | $25. |
| National or Regional Meeting Fee | $625, plus expenses for the national meeting. This fee is subject to change. |
| Customer Survey Fee | Varies under the circumstances. Approximately $1.50 per customer. |
| Services to Customers | Varies under the circumstances. |
| Taxes | Varies. |
| Various Marketing Materials | Actual costs incurred. |
Final Note
Other potential fees the would-be franchisee should know are the rent and renovation fees for an office space. This summarizes the overall breakdown of the Spring-Green Lawn Care franchise cost. For more information on other franchising opportunities, read more at Franchise How.