View Single Post
  #2  
Old 05-06-2010, 02:57 PM
U.S. Lawns Home Office U.S. Lawns Home Office is offline
Sponsor
 
Join Date: Apr 2010
Posts: 11
Someone's questions from a different thread:

Quote:
The biggest drawback to me is not the 29K (I believe) franchise start up fee, or even the 5% of gross (I believe) royalty fee due every month.
You are partially correct here. Our franchise fee is $29k, of which 70% can be financed if you meet our qualifications. Royalties start at 4% of gross sales, but we do have a declining royalty structure.

Quote:
Seems to me it's the huge debt load you are required to take on. Need a new truck & Exmark equipment right from the start, right? Why not used equipment? What happened to being profitable by keeping overhead as low as possible? Also, what if there is no Exmark dealer nearby?
There are a few misconceptions here..

1. You do not need a new truck. As long as your truck is white, has no significant body damage (major dents or rust), and is a F250 or equivalent (if you like GMC or Dodge that is fine)... that will work. I will say this though, if you are going to have a payment on a vehicle, wouldn't it be nice if that vehicle is under warranty?

2. eXmark is just one of our many partners on the equipment side. We do not require you to purchase an eXmark mower. You are free to use used equipment if you like, especially if you are already in the business (as long as it is commercial grade). The danger of used equipment is the risk of significant down time, which will eat you alive in this business if it becomes a problem. Furthermore, it's all about service when it comes to the dealer networks. If you are receiving great service from your dealer, you are set.
Reply With Quote
 
Page generated in 0.04103 seconds with 7 queries