Franchising Since: 1989
Headquarters: Frederick, Maryland
Estimated Number of Units: 100
Franchise Description: The franchisor is NaturaLawn of America, Inc. The franchisor will award individuals, partnerships, corporations or other legal entities a franchise license, which grants them the right to establish and operate one NaturaLawn of America franchised business within a licensed territory approved by the franchisor. Franchisees conduct a lawn care service business that primarily uses organic-based treatments.
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Territory Granted: The licensed territory will vary in size depending on the demographic profile of the area. However, it generally includes at least 40,000 single-family households. The franchisor may charge an additional initial license fee for territories that exceeds its demographic guidelines for a standard licensed territory. Except as provided in the Franchise Agreement, and subject to their full compliance with the Franchise Agreement, and with any other agreements between franchisees and any of their affiliates and the franchisor or any of its affiliates, franchisees are granted an exclusive territory that neither the franchisor nor any affiliate of its 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 the license. However, the franchisor, and its affiliates, may conduct, or may authorize third parties to conduct, specified activities detailed in the FDD.
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.
Term of Agreement and Renewal: The length of the initial franchise term is five years. Three additional terms, each for five years, are available, each subject to contractual requirements.
Financial Assistance: The franchisor does not offer direct or indirect financing. The franchisor does not guarantee a franchisee’s note, lease or obligation.
Estimated Initial Investment
| Name of Fee | Low | High |
| Initial Franchise Fee | $19,500 | $39,500 |
| 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 | $60,000 | $80,000 |
| Licenses | $250 | $500 |
| Professional Fees (accounting, legal, etc.) | $1,250 | $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) | $77,500 | $152,650 |
Other Fees
| Type of Fee | Amount |
| Service Fee | Initially, 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. |
| Advertising Fee | 1% of gross sales. |
| 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. |
| Non-Attendance at Mandatory Meeting Fees | $1,500 first year and increased service fees after third. |
| 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 |
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