Franchising Since: 1967
Headquarters: Holmdel, New Jersey
Estimated Number of Units: 660
Franchise Description: The franchisor is Lawn Doctor, Inc. The primary activity of the business is to establish, care for and maintain lawns and other vegetation in an identified territory. The franchisor also may require franchisees to provide other services, including mosquito control. Lawn Doctor businesses also are authorized to design, install, maintain, remove, and store holiday lighting and décor under the “Holiday Lighting Heroes” trademark.
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Territory Granted: A geographic territory will be identified in the Franchise Agreement in which franchisees will initially conduct the business. The territory will contain no less than 10,000 single family residences. After franchisees have been operating the business for four years, if their “market share” falls below the required level, the franchisor may reduce the size of the territory by redrawing its boundaries in its sole discretion. If franchisees are in compliance with the Franchise Agreement, but except as provided in clauses given in the FDD, the franchisor will not operate or grant a franchise for the operation of a Lawn Doctor business with a territory which overlaps in any material respect with the territory.
Obligations and Restrictions: Franchisees (or, if they are an entity, the owners) must continuously use their best efforts to promote the business and devote their full time, energies and attention to the operation of the business. Franchisees must not engage in any business or activity that competes with LDI, the business or the Lawn Doctor system. However, the franchisor may permit franchisees to engage in other non-competitive business activities if they obtain the franchisor’s written consent, which may be withheld in LDI’s sole discretion. Franchisees must offer and sell all lawn care and conditioning services, tree and shrub care services, and related products and services that LDI authorizes for sale by the business in the territory (which may include mosquito control). Franchisees also will offer and sell holiday lighting and décor services under the Holiday Lighting Heroes trademark as part of their Lawn Doctor business. Franchisees must conduct the business within the territory, such that none of the net revenues of the business are derived from customers whose properties are located outside their territory.
Term of Agreement and Renewal: The length of the initial franchise term is 10 years. The renewal right permits franchisees to obtain a successor franchise for the business for a term of 10 years after the initial term of the Franchise Agreement expires if they meet certain requirements.
Financial Assistance: Franchisees must enter into equipment leases (Turf Tamer Stand-On Applicator Lease and Turf Tamer Power Seeder Lease) before their initial training. Under the equipment leases, the franchisor retains title to the equipment, but it may, at its sole option, require franchisees to sign and file a Form UCC-1 in all applicable jurisdictions. Except as provided, the franchisor does not offer direct or indirect financing. The franchisor does not guarantee a franchisee’s note, lease, or obligation. The franchisor is a participant in the “VetFran,” “MinorityFran,” “Green Fran,” and “First Responder” initiatives and offers a 10% reduction in the $50,000 initial license fee portion of the initial franchise fee to qualified U.S. military veteran, minority, green industry, and first responder candidates, respectively (but these discounts cannot be combined).
Estimated Initial Investment
| Name of Fee | Low | High |
| Initial License Fee | $50,000 | $50,000 |
| Initial Marketing Program, Training Supply and Support Fee | $70,600 | $70,600 |
| Turf Tamer Stand-On Applicator Lease Deposit | $3,350 | $3,350 |
| Turf Tamer Power Seeder Lease Deposit (not applicable in certain situations) | $0 | $3,050 |
| Service Vehicle | $1,800 | $2,400 |
| Shipping of Turf Tamer Power Seeder | $0 | $500 |
| Computer Software | $225 | $500 |
| Computers | $0 | $2,000 |
| Opening Inventory (for lawn care products/materials) | $500 | $500 |
| Rental Space | $0 | $3,000 |
| Bookkeeper | $325 | $400 |
| Training Expenses (per attendee) | $2,500 | $4,000 |
| Utility/Security Deposit | $200 | $200 |
| Insurance | $800 | $1,000 |
| Opening Holiday Lighting Inventory | $6,000 | $14,000 |
| Start-Up Equipment Package for Holiday Lighting (tools, ladders, safety equipment) | $2,400 | $2,800 |
| Uniforms | $250 | $500 |
| Utility/Security Deposit | $200 | $200 |
| Additional Funds - 3 Months | $10,920 | $18,052 |
| ESTIMATED TOTAL | $150,070 | $177,052 |
Other Fees
| Type of Fee | Amount |
| Royalty and Service Fee | 10% of net revenues. |
| Technology Fee | Currently starts at $150 with a scheduled increase to $250 (subject to additional potential increases). |
| Out-of-Territory Royalty Fee | 15% of net revenues earned outside of strategic partner’s territory. |
| Local Marketing Fund | Maximum of 5% of net revenues. |
| Marketing and Promotion Fund | Maximum of 5% of net revenues. |
| Local Advertising | Unspent amount of required local advertising activities. |
| Centrally Managed Media Boost Program | $5,000 |
| Holiday Lighting Heroes Advertising / Marketing | Greater of $6,000 or 5% of immediately preceding calendar year’s net revenues from offer, sale, and provision of Holiday Lighting Heroes holiday lighting and décor services by the Lawn Doctor business. |
| Call Center Fees | Currently $750 per month (monthly charge begins after the 1st year of operation). |
| Turf Tamer Stand-On Applicator Lease | $335.40 per month plus sales tax. |
| Turf Tamer Power Seeder Lease | $305.96 per month plus sales tax. |
| Equipment, Product, and Service Purchases | Varies depending on products and services franchisees buy from the franchisor or its affiliates. |
| Transfer Fee | 75% of the then-current initial license fee component of the initial franchise fee payable by a strategic partner who is new to the Lawn Doctor system. |
| Broker Fee | Then-current amount (currently $25,000). |
| Interest on Late Payments | Highest legal rate for open account business credit, not to exceed 1.5% per month. |
| Inspections and Audits | Cost of an audit (amount of which depends on circumstances and extent of the franchisee’s noncompliance). |
| Indemnification | Will vary under circumstances and depend on nature of third-party claim. |
| Costs and Attorneys’ Fees | Will vary under circumstances and depend on nature of the franchisee’s noncompliance. |
| Fine for Failure to Provide Materials for Inspection | $500 per day. |
| Fine for Use of Unauthorized Advertising | $250 |
| Customer Complaint Reimbursement | Out-of-pocket cost reimbursement. |
| Tax Reimbursement | Actual cost reimbursement. |
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