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NaturaLawn of America Franchise Costs & Fees

Date of Incorporation: 1987
Franchising Since: 1989
Headquarters: Frederick, Maryland

Business Description: The franchisor is NaturaLawn of America, Inc. Franchisees conduct a lawn care service business that primarily uses organic-based treatments.

Franchise Offer: The franchisor will award individuals, partnerships, corporations or other legal entities a franchise license, which grants them the right to establish and operate 1 NaturaLawn of America Franchised Business within a licensed territory approved by the franchisor.

Financial Assistance: The franchisor does not offer direct or indirect financing. The franchisor does not guarantee franchisees’ note, lease or obligation.

Training and Assistance: Training is mandatory for franchisees and also for certain of their employees, including managers and turf technicians and other employees, who in the franchisor’s opinion, require specialized skills in order to properly perform their jobs. Initial owner training for franchisees and, if applicable, their manager or other principal owner, is typically conducted for 1 week at the franchisor’s home office in Frederick, Maryland, and for 2 additional weeks at 1 of its company locations in Maryland or Virginia, before the opening of the Franchised Business. Training for turf technicians and other employees is conducted at the franchisee’s location, at a regional site, at 1 of the franchisor’s designated company locations or at its home office. The franchisor will hold 1 or 2 annual owner training programs that franchisees must attend after their business is opened to the public. These meetings will be conducted in various locations and will normally include training in marketing and sales techniques and promotional plans, as well as technical updates and idea exchanges among Franchised Businesses. The franchisor will also be available to provide assistance to franchisees after the opening of their businesses, when required, on a reasonable basis.

Territory: The Licensed Territory will vary in size depending on the demographic profile of the area. However, it generally includes at least 10,000 single-family households. The franchisor may charge an additional initial license fee for territories that exceed our demographic guidelines for a standard Licensed Territory. Except as provided in the Franchise Agreement, franchisees are granted an exclusive territory that neither the franchisor nor any affiliate of ours will establish or authorize any person or entity, other than the franchisee, to establish a Franchised Business in the Licensed Territory during the term of your license.

Term of Agreement and Renewal: The length of the initial franchise term is 5 years. Three additional terms, each for 5 years, are available, each subject to contractual requirements.

Obligations and Restrictions: The Franchised Business must at all times be under the franchisee’s direct on-premises supervision or that of a manager acceptable to the franchisor. The qualifications for an acceptable manager are contained in the Manual and are subject to change by the franchisor, at its sole discretion. Franchisees or their manager must work full-time and personally devote their full attention and energy to managing and operating the business and to supervising employees. Franchisees may offer and sell only products and services that the franchisor approves.

Estimated Number of Units: 80

Investment Tables:
Initial Investment
Name of Fee Low High
Initial Franchise Fee $9,500 $29,500
Opening Inventory $0 $5,000
Real Estate Improvements Varies
Lawn Care Equipment Purchases $1,500 $4,000
Vehicle (purchase or lease cost for 6 months) $0 $3,000
Office Furniture & Equipment $0 $5,000
Training Expenses $0 $1,150
Computer & Technology Expenses $0 $1,000
Initial Annual Advertising and Marketing $25,000 $50,000
Licenses $250 $500
Professional Fees (accounting, legal, etc.) $1,150 $2,000
Lease Deposits (rent, utilities, etc.) $2,000 $3,500
Insurance Deposit $1,500 $3,500
Additional Funds (6 months or more) $1,500 $4,500
ESTIMATED TOTAL plus access to a $75,000 - $125,000 line of credit (does not include real estate costs or increase in initial license fee for larger territory) $42,500 $112,650
Other Fees
Type of Fee Amount
Service Fee 9% of Gross Sales; after renewal, 7% or 9% of Gross Sales.

15% of Gross Sales assessed on all revenue derived from sources outside of the franchisee’s Licensed Territory.
Supplies and Equipment Prices the franchisor or suppliers charge.
Interest 1.8% per month or 21.6% per year on amounts past due.
Delinquent Service Fee $100 per week.
Indemnification Costs & expenses.
Inspection & Audit Expense of inspection and audit.
Attorney’s Fees & Costs Actual costs & expenses.
Extra Training or Support at the Franchisee’s Location Actual reasonable travel & living expenses.
Transfer $10,000

The above information has been taken from the FDD of NaturaLawn of America. Year of FDD: 2016

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