The Green Industry's Resource Center

U.S. Lawns Home Office · #11 05-26-2010, 10:12 AM

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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.

This is a great point and something you should discuss with our franchisees. Franchising is a heavily regulated industry and we are not position to disclose anything that could be construed as an earnings claim.

Something else to consider... we have purchasing programs that provide our franchisees with discounted rates on equipment, supplies, plant material, etc. These discounts help offset some of the money you pay towards fees.

U.S. Lawns Home Office · #12 05-26-2010, 10:29 AM

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

Great question and probably the one that is most frequently asked by those already in the business.

We assist with this process, but it is still primarily up to our franchisees to develop relationships with individuals who make decisions on commercial properties. As a business owner, you want to be the one creating and managing these relationships ... not someone else.

Now, we do provide marketing support and assist you in developing a database of prospective customers, based upon the reconnaissance we've done in the market and the data we've collected over the years on who our franchisees have success with (types of properties and businesses). Furthermore, we point you in the direction of organizations that are made up of individuals that manage commercial properties (organizations that U.S. Lawns brands to). Additionally, we do have a very active regional and national account program. Dependent upon your location/territory and the relationships we have in place, there may be some work that could be transitioned to you after moving forward with U.S. Lawns.

trooper8870 · #13 05-26-2010, 07:14 PM

In regards to the equipment that US Lawns stated that you must have, that must not be true for one of your franchisees in West Tennessee. They have a F150 that looks like it was rolled down a hill and the trailer looks like it was attached. Looks RUFF. Oh yeah, they don't run commercial registration on their trucks or trailers as required by Tennessee law. They are on the verge of being an eye sore to the reputation that US Lawns wants to have. May need to look at whats representing the Corporation.

Az Gardener · #14 05-26-2010, 09:32 PM

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Originally Posted by trooper8870

In regards to the equipment that US Lawns stated that you must have, that must not be true for one of your franchisees in West Tennessee. They have a F150 that looks like it was rolled down a hill and the trailer looks like it was attached. Looks RUFF. Oh yeah, they don't run commercial registration on their trucks or trailers as required by Tennessee law. They are on the verge of being an eye sore to the reputation that US Lawns wants to have. May need to look at whats representing the Corporation.

Its called ROI

Just kidding, I know what you mean. I have seen them here in Phx. and they are definitely not concerned with image.

George Mason · #15 06-21-2010, 10:04 AM

How about residential accounts? Most of the information, make that all that I could find, on the US Lawns website as well as this site mention commercial work. Does US Lawns compete in the residential sector, is this forbidden by franchisees or frowned upon? HOA offer excellent accounts as do many residential jobs. It would seem if you have the equipment, the manpower, and the know-how that you would go after whatever work you could to meet the numbers you quoted above and lessen the impact of the royalty fees.

Please let us know.

U.S. Lawns Home Office · #16 06-29-2010, 03:55 PM

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Originally Posted by George Mason

How about residential accounts? Most of the information, make that all that I could find, on the US Lawns website as well as this site mention commercial work. Does US Lawns compete in the residential sector, is this forbidden by franchisees or frowned upon? HOA offer excellent accounts as do many residential jobs. It would seem if you have the equipment, the manpower, and the know-how that you would go after whatever work you could to meet the numbers you quoted above and lessen the impact of the royalty fees.

Please let us know.

At U.S. Lawns, we place 100% of our focus on the commercial sector, which does include multi-tenet residential opportunities (HOA's, appartment communities, condo associations, etc.). Is residential work frowned upon? Yes (as far as our model is concerned). In our opinion, we would rather tie up resources pursuing and servicing commercial work. Our goal is to build sustainable businesses. Sustainable businesses are built around processes, systems, and work teams. The business service you are offering (and the overall business model for that matter) needs to be replicable. From our experience, the commercial sector provides the best market for this type of business.

Is residential work forbidden? No. That is up to you as an owner. In the end, we believe this is a moot point. As an owner starts to truly develop his commercial customer base, we see little resistance to indivduals "phasing out" residential work.