Originally Posted by GaryBK
For $12k you get a truck and spray rig? Doesn't sound bad. $5k for good software isn't bad either. As anyone who uses a service Assistant from Real Green. The other fellow said royalties were about 5 percent a year. Are you saying there is an additional 20 percent advertising fee?? That seems extremely excessive especially if the franchisee has to pay for their own local mail outs etc. The noncompete clause is pretty standard though.
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12 grand does not include any equipment - if it included a truck and spray equipment I would sign in a heartbeat! 12k per truck is just how they structure their royalty. And 5k for software is for one license, you have to pay additional for more. Plus a recurring fee for it. There's plenty of better software out there for that much. We could probably pool 5k together and have my nephew program an awesome software platform for all of us (hmmm not a bad idea...).
The 20% of royalty (not 20% of revenue) gets paid to their national advertising fund, so you have no discretion of how it is spent. Of course you may benefit from the brand name, but it's not like Weed Man is a household name yet. You still have to pay all marketing costs for your own franchise.