U.S. Lawns Franchise Opportunity; Questions?

[U.S. Lawns Home Office]

Throughout the years, there have been numerous questions that have come up on these forums regarding the U.S. Lawns franchise opportunity. I thought it would be helpful to dedicate a thread specifically to answer those questions.

First, here is a little background on the compnay:

U.S. Lawns is the largest and fastest-growing landscape management franchisor in the commercial green industry today. Through a network of over 200 locally-owned franchise offices strategically located throughout more than 30 states, U.S. Lawns provides commercial customers with a full range of personalized, professional landscape management services.

Founded in Orlando, Florida in 1986, U.S. Lawns was developed as a way for local operators of landscape maintenance businesses to access and utilize the support, resources, and professionalism of a large, national corporation. As a top company in the industry, U.S. Lawns is a resource that offers unparalleled guidance, training, and support to its family of franchisees.

[U.S. Lawns Home Office]

Someone's questions from a different thread:

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.

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.

[Kel Klip]

I'd like to have get some info on US lawns PM me please. Thanks, Sean
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[Az Gardener]

Can you explain your declining royalty structure?

[aem910]

Originally Posted by U.S. Lawns Home Office

Someone's questions from a different thread

Thank you for taking the time to answer my questions on the open forum. As I mentioned in the other thread, the idea of hitting the ground running greatly appeals to me.

Would you please elaborate on the declining royalty structure? The royalty fee is probably the biggest complaint I've read about. However, I tend to think it is a reasonable price to pay for the advantage you receive. Seems to me you start much further along on the learning curve from day one, which translates into more money sooner. Someone else summed it up nicely in a prior thread when they said something to the effect of: Most of the knuckleheads in the industry would rather have 100% of $300-400K after 10 years and thousands more in mistakes, than the 96% of the $1MM+ a franchise would generate in 5 years.

[shooterm]

This is proof we still have bad money flowing around. Its asinine to think anyone can run a lawn mowing business and take 4% of gross sales. You mow lawns not make burgers.

[justanotherlawnguy]

they must make some money. You should see their site here in Tampa. It is huge!! They just built it last year and its on a couple of acres. The shop/storage area is massive. I took some pictures of it before.

They do all the bank of americas and some other banks in the area, as well as some hoa's.

I saw them out today, Sunday, working at a bank.

[THEGOLDPRO]

when you buy the franchise do they hook you up with clients or do you have to find your own?

[Az Gardener]

Originally Posted by PDMcgowan

This is proof we still have bad money flowing around. Its asinine to think anyone can run a lawn mowing business and take 4% of gross sales. You mow lawns not make burgers.

In many parts of the country its more than just mowing lawns. And you can save some years of headaches by buying a franchise. The problem is most people with the money to buy a franchise would rather enter a industry where you are not competing with people who know so little they don't even know what they don't know.Add such little investment if you want to call it that to get rolling and its a loose loose for someone wanting to buy a franchise.

US Lawns would never have started up if it was a stand alone business. They did it because the mother company already had all the ingredients needed to start up the franchise business they just needed to make a small investment (to them) in legal fees to get it off the ground. They have relationships with other major franchises to get you on the top of the bid list but they don't guarantee you any jobs.

I'm a big fan of franchises, my business is set up like a franchise but that's for me to offer opportunities to my long time employees who want to go out on their own.

[U.S. Lawns Home Office]

I apologize for the delayed response. It's been a hectic few weeks! To answer your questions...

Can you explain your declining royalty structure?

I will refer directly to our Franchise Disclosure Document to answer this question:

Royalty Fees

-4% of all gross billings if owner’s gross billings in the calendar month are $41,500 or less.

-3.75% of all gross billings if owner’s gross billings in the calendar month are over $41,500 but equal to or less than $62,500.

-3.5% of all gross billings if owner’s gross billings in the calendar month are over $62,500 but equal to or less than $83,250

-3% of all gross billings if owner’s gross billings in the calendar month are over $83,250

-If owner’s gross billings in a calendar month are over $104,166, owner will pay 3% of all gross billings up to and including $104,166, plus 1.5% of the gross billings in excess of $104,166.