Partnership / Franchise / Royalty / Fees??

Discussion in 'Franchising' started by Sunrize, Jan 16, 2011.

  1. Sunrize

    Sunrize LawnSite Member
    Messages: 2

    I am currently working with a friend that owns a pest control / turf care company with 4,000 plus clients and he wants to expand into landscaping. I have 10 years experience and a book of business to bring with me to partner up. He has the shop / trucks / tools / state certs for pest control and lawn care and an office to handle all billings, etc. Their is no experience at his office with landscaping and I am the only one that knows the difference between a knock out rose and spirea. We would like to set up a plan were he receives a percentage of the gross income (15% - 25%) to cover office, trucks, marketing, ins., etc. I will be responsible for paying labor, gas and myself out of what is left over in the 75%. Has anyone set something like this up without going to a franchise? Thanks for your help.
  2. turf hokie

    turf hokie LawnSite Silver Member
    Messages: 2,753

    Unfortunately, it sounds like you are holding less cards than your buddy. He could probably do this without you if he really wanted to, just has to hire the right manager.

    That being said, he probably wants to do it with you because of the relationship he has with you and who you are. Percentages etc would have to be worked out on an individual basis, cant really speak to what would work for all, depends on the nitty gritty of the situation for both of you.

    I can say this, work it out between the two of you, if it works awesome, if not both can move on, a franchise in this situation seems to be the last thing you need, a third partner. What will that bring to the table that you dont already have between the two of you? besides more bills and restrictions?

    I dont have any more advice than that based on not knowing the real details, and honestly, I would not want you to share those details here on an open forum. I have had similar deals presented to me and am actually working on a few as I type this, none have worked out as of yet for various reasons.....
  3. l3en007

    l3en007 LawnSite Member
    Messages: 96

    Whats your book of business compared to his 4,000 clients?

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