Franchising Since: 1977
Headquarters: Plainfield, Illinois
Estimated Number of Units: 155
Franchise Description: The franchisor is Spring-Green Lawn Care Corp. The franchise offered is for the right to operate a business under the name “SpringGreen” offering professional lawn care, pest control, and related services for residential and commercial properties.
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Territory Granted: The Franchise Agreement grants franchisees the right to operate a franchised business within the designated territory. The franchisor does not guarantee any particular minimum area will be included in the territory. The territory will include up to 60,000 single family dwelling units (SFDUs). If franchisees wish to obtain a geographic territory of more than 60,000 SFDUs, and the franchisor approves, they must pay an additional fee of $0.50 for each SFDU over 60,000 SFDUs. If franchisees are in full compliance with the terms and conditions of the Franchise Agreement and all other agreements with the franchisor and its affiliates, they will have the exclusive right to sell authorized lawn and tree care products and services and other approved services to residential accounts located within the territory. Franchisees may not solicit or sell to residential accounts located outside of the territory.
Obligations and Restrictions: The Franchise Agreement provides that the franchised business shall be under the direct full-time supervision of the franchisee or of a trained and competent operations manager who has completed the initial training program or equivalent training to the franchisor’s satisfaction. If franchisees are a corporation, limited liability company, or partnership, the owners must personally guarantee the obligations under the Franchise Agreement and be personally bound by, and personally liable for the breach of, every provision of the Franchise Agreement. The Franchise Agreement prohibits franchisees from using or selling any product or service that the franchisor has not authorized and approved for use or sale by the franchised business.
Term of Agreement and Renewal: The length of the initial franchise term is 10 years. One renewal term of 10 years on new terms and conditions is permitted if franchisees meet certain requirements unless the franchisor is no longer granting franchises for franchised businesses anywhere in the state(s) in which the territory is located.
Financial Assistance: The franchisor currently provides financing where it will finance part of the initial franchise fee. The franchisor also currently provides financing where it will finance the initial property data fee that franchisees are required to pay. Financing is provided only if the franchisor determines that the franchisee satisfies the then-current criteria for the type of financing. In order to provide franchisees with additional financing options, it offers a lease program under which it will purchase certain equipment and computer software and lease it to franchisees. The franchisor has also entered into a financing program with Advantage Leasing Corp. (ALC) under which franchisees may be able to obtain financing from ALC in an amount between $25,000 and $100,000. In addition to ALC Financing, the franchisor may also periodically agree with other third-party lenders to make financing available to qualified Spring-Green franchisees, and we may refer franchisees to a third-party lender for financing. If franchisees are a veteran of the U.S. Armed Forces and meet the requirements of the VetFran Program, the franchisor will apply up to $5,000 of the initial franchise fee to start-up expenses that it designates or approves.
Estimated Initial Investment
Name of Fee | Low | High |
Initial Franchise Fee | $45,000 | $45,000 |
Production Vehicles, Equipment and Fixtures | $5,519 | $5,519 |
Technology Equipment and Software | $3,450 | $3,850 |
Opening Inventory and Supplies | $2,543 | $2,543 |
Initial Marketing Campaign Fee | $35,000 | $35,000 |
Initial Property Data Fee | $16,500 | $16,500 |
Training Expenses | $0 | $1,835 |
3 Months’ Rent | N/A | |
Miscellaneous Opening Costs (incl. licenses and other prepaid expenses) | $1,550 | $13,168 |
Additional Funds – 3 months | $7,981 | $10,927 |
ESTIMATED TOTAL | $117,543 | $134,342 |
Other Fees
Type of Fee | Amount |
Royalty | Sliding scale of 10% to 8% of gross sales of the franchised business, except for reduced royalty rates under green associate program. |
Advertising Fund Contributions | 2% of gross sales of the franchised business. |
Regional Advertising Fee | If established, up to 2% of gross sales of franchised business. |
Local Marketing Shortfall | Will vary. |
Audit | Cost of inspection or audit. |
Transfer Fee | 2.5% of gross sales of the franchised business within the 12 months immediately preceding the effective date, but no less than $7,500 and no more than $17,500. |
National Advisory Council Assessment Fee | Currently $20 per month for the months of April through November. |
Indemnification | Will vary under circumstances. |
Interest | The greater of 1.5% per month or 3% over Bank of America prime rate, but not above the highest legal rate permitted by applicable law. |
Lease of Equipment | $497 to $692 per month. |
Management Fee | The franchisor’s (or the third party’s) out-of-pocket costs and expenses, plus the greater of (a) $300 per day, or (b) the gross sales exceeding the expenses of the franchised business. |
Supplier Testing Fee | An amount not to exceed the cost of inspection and testing. |
Education Fee | Currently $210 per year. |
Ongoing/Refresher Training | Not currently charged. If implemented, it will be the then-current fee (currently $250 per day). |
Property Data Fee | The franchisor’s (or affiliate’s) then-current fee. |
Technology Fee | Currently $235 per month plus individual license cost. |
Accounting Service Fee | If required, the franchisor estimates this cost to be $300 per month. |
Insufficient Funds | $100 |
Failure to Report Gross Sales Fee | $25. |
National or Regional Meeting Fee | Currently, $650, plus expenses for the national meeting. |
Customer Survey Fee | $1.50 to $2.00 per customer. |
Taxes | Will vary. |
Various Marketing Materials | Actual costs incurred. |
Call Center Fee | $200 to $1,950 per month. |
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