Has it always been your dream to own a landscaping company, but you don’t know where to start? You can always start by buying a reputable landscaping company franchise with a comprehensive landscaping business insurance policy.
According to IBIS World, the landscaping industry is a thriving industry that experiences an average growth of 4.2% per year. Even with the different occurrences in the world, the industry is still expected to increase, thanks to the constantly growing number of homeowners in the country. From millennials to senior citizens, a helping hand is always required for lawn care, resulting in the demand for landscaping services.
So do you want to know how much potential the landscaping industry has and how much landscaping franchise cost? Well, keep reading. In this article, we will be discussing all of these and more.
How Does A Landscaping Franchise Work and How Much Does it Cost?
If starting a business from scratch intimidates you, or you don’t like the idea of buying an existing company, then franchise ownership may be what you need.
A franchise allows you to operate a business using the name and system of an already existing company for several years. However, you must pay a franchise fee, where you are the franchisee and the existing company, the franchiser.
There is no stipulated figure to be paid as the franchise fee for landscaping companies. However, it is usually between $10,000 and $100,000.
Several factors determine the franchise fee of a landscaping company, and some of them are:
- The value of the company
- The location of the company
- Training needs:
- The cost of being the sole franchise in a region
- The length of the contract
- Assistance in site selection
- The cost of on-site support
- The potential profitability of the franchise.
- Marketing materials and expenses.
When the business is up and running, you, as the franchisee, must pay royalties to the company. The royalties can range from 5% to 50% of your income, depending on the company’s value.
Factors To Consider Before Buying A Landscape Company Franchise
When starting any business, it is crucial to weigh the pros and cons, and it is no different with buying a landscaping company franchise. Before making this huge commitment, below are some factors to consider.
The Demand For The Service
Before buying a landscaping franchise, you must research the level of demand for landscaping services in your neighborhood and the city as a whole.
Although lawn care and other landscaping services will always be in demand, it is necessary to know whether this demand is seasonal or continuous. During your research, you should also take note of the number of already existing landscaping services in your city. If many companies are already offering landscaping services, starting up another, albeit a franchise, may not be the wisest thing.
It would help if you only considered companies with a history of successful franchises in different locations.
After finding a successful landscaping company, you can proceed to speak to current franchisees about their experiences and if the company is worth investing in.
You must know that buying a franchise imposes on you the task of protecting the franchiser’s image at all costs. For this reason, you must be willing to abide by the standards and restrictions of the company. These rules apply to the prices, operational hours, availability of emergency services, customer service, etc. If you cannot abide by these standards, it is always better to let them know beforehand and see if they can compromise.
One advantage of buying a franchise over starting a landscaping company from scratch is the training and support offered by the company.
If you don’t have previous experience running a company, it is advisable to buy a franchise that offers solid support and substantial training to its franchisees. Thankfully, some franchisers offer special training and may even come around to manage the business for a while before a complete handover.
Even with an entrepreneurial background, you would still want a company that offers a great deal of support to its franchisees, as the success of your business is strongly dependent on that. You do not want to work with a company with no support system that will leave you hanging when you need them the most.
Before buying a landscaping franchise, it is important to equip yourself with the necessary knowledge about the business and laws surrounding franchise ownership in your state and the country.