Lawn Doctor was founded in 1967 by Bob Magda and Tony Giordano in Matawan, New Jersey. The idea for the company originated when Tony, a hardware store owner, saw the need for professional lawn care services among new homeowners. This inspired him and Bob, who had a background in mechanical engineering, to create the industry’s first automated lawn care machine.
The company quickly grew in popularity, and the name “Lawn Doctor” was established, becoming synonymous with reliable lawn care services. Lawn Doctor began franchising in 1967. Headquartered in Holmdel, New Jersey, Lawn Doctor offers a range of services including lawn fertilization, weed control, pest control, and tree and shrub care.
The franchise is known for its proprietary Turf Tamer® equipment, which ensures precise and efficient lawn treatments. What sets Lawn Doctor apart from the competition is its commitment to customer satisfaction, local ownership of franchises, and a comprehensive satisfaction guarantee. Each Lawn Doctor franchise is locally owned, which means customers receive personalized service from experts who understand the specific needs of their community’s lawns.
Lawn Doctor Franchise Financial Model
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Lawn Doctor Franchise Financial Model
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Initial investment
Here’s what you can expect to spend to start a Lawn Doctor franchise.
Note:The table above provides a snapshot of the main costs associated with starting the most common franchise format (as disclosed in theItem 7of the Franchise Disclosure Document). For a complete overview of all the expenses involved with the various formats offered by thefranchisor, please consult the Franchise Disclosure Document.
Franchise fees & Royalties
Here are the main ongoing fees the franchisor will ask you to pay going forward to run the franchise.
Initial Franchise Fee
The initial franchise fee is $122,000, which includes an initial license fee of $45,000, an initial training, supply and support fee of $70,600, a nonrefundable deposit of $3,350 for the Turf Tamer Stand-On Applicator lease, and a nonrefundable deposit of $3,050 for the Turf Tamer Power Seeder lease.
Royalty Fee
The royalty and service fee is 10% of the net revenues of the Lawn Doctor business, payable weekly by Thursday for the preceding week.
Marketing/Advertising Fee
- Initial Advertising/Marketing Fee: $6,000 to $14,000.
- Ongoing Marketing and Promotion: The greater of $30,000 or 10% of Net Revenues annually.
- Marketing Fund Contributions: Up to 5% of Net Revenues, credited against required local advertising spend.
Technology Fee
The technology fee is $150 per month until cumulative net revenues reach $1,000,000, after which it increases to $250 per month. The fee is payable monthly and may be increased up to $500 per month during the term of the franchise agreement.
Transfer Fees
The transfer fee is 75% of the then-current initial license fee component of the initial franchise fee payable by a new strategic-partner. Additionally, a broker fee is required if a third-party broker or consultant assists with the sale.
Lawn Doctor Franchise Financial Model
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Franchise pros and cons
The pros:
- Financing assistance: Lawn Doctor offers its franchisees in-house financing to cover the startup costs, franchise fees, equipment, and accounts receivable. Also, it provides them with third-party financing to cover their equipment, inventory, and payroll costs.
- Pre-opening training and ongoing support: The franchisor has a detailed training program consisting of 50–61 classroom hours to equip its franchisees with the basics of running a successful business. It also helps them with grand openings and offers them growth strategies.
- Marketing and advertising: The franchisor offers its franchisees solid marketing planning and branding systems to help them with their lead generation and public relations. These include ad templates, co-op advertising, national media, regional advertising, social media, email marketing, etc.
- Mobile-based business: The franchise can be run from a mobile facility, leaving the franchisees with no front-store requirements, a short startup time, and low ongoing costs.
- Exclusive territory protection: Lawn Doctor offers its franchisees exclusive territories to operate their businesses. Franchisees can establish and build successful businesses without facing competition from other franchises or businesses controlled by the parent company.
- Multiple income streams. The franchise provides its franchisees with a wide mix of services to meet customer needs and improve earning potential. These are lawn care, tree, and shrub care, perimeter pest control, lawn mower maintenance services, etc.
The cons:
- No international presence: Currently, the franchise does not have locations outside the US. It may be unattractive on the international market.
- Not a passive investment: The franchisor does not allow for semi-absentee ownership. Franchisees must be actively involved in the daily management of their franchises.
- Competition: The franchise faces competition from The Grounds Guys LLC, Landscaping Co., etc.
How to open A Lawn Doctor franchise
Opening a Lawn Doctor franchise involves several steps, designed to ensure you are a good fit for the franchise. Here are the main steps to follow to open a Lawn Doctor franchise.
1. Initial Inquiry and Application
- Visit the Lawn Doctor franchise information page.
- Complete and submit the initial franchise application form to express your interest.
- A Lawn Doctor franchise development representative will contact you to discuss the opportunity and provide further details.
2. Review Franchise Disclosure Document (FDD)
- Upon initial approval, you will receive the Franchise Disclosure Document (FDD).
- Thoroughly review the FDD to understand the financial requirements, obligations, and details about the franchise opportunity.
- The FDD includes crucial information on initial fees, ongoing royalties, marketing fees, and other financial commitments.
3. Financial Requirements and Initial Investment
- Ensure you meet the financial requirements for opening a franchise. This includes:
- A minimum net worth of $150,000.
- At least $60,000 in liquid assets.
- Be prepared to invest between $102,500 and $145,000, depending on the location and type of setup.
4. Franchise Agreement and Initial Fees
- After approval, sign the franchise agreement.
- This legally binding document outlines the terms and conditions of your franchise ownership.
- Pay the initial franchise fee, which is part of your total investment.
5. Training and Support
- Attend the comprehensive training program provided by Lawn Doctor.
- Training covers all aspects of operating a franchise, including management, operations, and marketing.
- Ongoing support is provided, including marketing assistance, operational support, and regular field visits.
Disclaimer
Disclaimer: This content has been madefor informational and educational purposes only. We do not make any representation or warranties with respect to the accuracy, applicability, fitness, or completeness of the information presented in the article. You should not construe any such information or other material as legal, tax, investment, financial, or other professional advice. Nothing contained inthis articleconstitutes a solicitation, recommendation, endorsem*nt, advertisem*nt, or offer to buy or sell any franchises, securities, or other financial instruments in this or in any other jurisdiction in which such solicitation or offer would be unlawful under the franchise and/or securities laws of such jurisdiction.
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