Franchise Costs 2013: Detailed Estimates of Lawn Doctor Franchise Costs (2013 FDD)

Detailed Estimates of Lawn Doctor Franchise Costs Based on Item 7 (Estimated Initial Investment) of Lawn Doctor’s 2013 Franchise Disclosure Document

• Except for security deposits, all other amounts are non-refundable.

1.  Initial Franchise Fee (Total):  $71,450 to $89,500 (fee is reduced in certain situations)

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  Initial License Fee:  $30,000
• Initial Marketing Program:  $40,000
• Training, Supply, and Support Fee:  $13,100
• Turf Tamer Stand-On Applicator Lease Deposit:  $3,350
• Turf Tamer Power Seeder Lease Deposit:  $0 to $3,050 (not applicable in certain situations)

• The low end of the estimate applies to a strategic-partner who qualifies for one of the initial franchise fee discounts Lawn Doctor, Inc. (“LDI”) offers and that strategic-partner’s Territory is located in an area where agronomic conditions are not conducive to a seeding program (as determined by LDI), in which case LDI will delete the Turf Tamer Power Seeder from the initial franchise package.

• Your initial franchise fee may be lower if you operate an existing Lawn Doctor Business and are acquiring a franchise to operate an additional Lawn Doctor Business.

2.  Servicing Vehicle:  $2,025

• Your costs may vary depending on whether you purchase or lease the vehicle, and the size, type, and condition of the vehicle.

• The cost of a Servicing Vehicle is usually paid through a lease, unless you choose to purchase it for cash. Currently, the basic Servicing Vehicle that you will need for the Business is a van, costing approximately $30,330. The typical 60 month lease requires monthly payments of approximately $675.

• All modifications to the basic service vehicle are included in the monthly rate. If you decide to purchase your service vehicle or lease it from another source, the current cost of outfitting the vehicle is approximately $10,937.

3.  Computer Software:  $548

• You must purchase from RealGarden Systems (“RGS”) a computer software program suited for use by lawn care businesses to use in the Business. This computer software program currently costs $16,440. You must pay RGS $548 when you sign the agreement with RGS and the remainder of the purchase price is payable in 58 equal monthly installments of $274 beginning 90 days after your completion of initial training.

• After the end of the 58 month period and for the remainder of the agreement’s term, you must pay RGS a service assistant, mapping assistant, and customer assistant fee equal to $155 per month.

4.  Computers:  $100 to $400

• LDI provides a color printer and a computer hardware and software package as partial consideration for your payment of the initial franchise fee. You are responsible for the installation of the printer and all consumables, including ink and paper. You must purchase peripheral devices such as telephones and connectivity (broadband, DSL, and cable).

5.  Opening Inventory:  $400 to $500

6.  Additional Funds – 3 Months:  $7,600

• Additional funds include the following:

• security and utility deposit:  about $200
• pre-opening and opening expenses:  about $1,000
• insurance:  about $900 for initial payment on a financed insurance policy
• transportation, travel, and living costs during training:  about $1,400
• labor costs:  about $2,000 for partial assistance in sales and/or servicing
• plus other miscellaneous expenses:  about $2,100

• All of these amounts are calculated through your first 3 months of operation.

• Some of these expenses, particularly labor, will be affected by your locale and the season when your Business opens.

• In compiling these amounts, LDI has relied on its experience in the business since 1967, and on reports from strategic-partners who have recently begun operation.

7.  Total Estimated Initial Investment:  $82,123 to $100,573

• The total does not include rental of space. In many instances, you may initially operate the business from your home or apartment.

• If you do not own adequate space, it should be available at a low rental due to the limited space required and the fact that the location of the space is not significant. You will need an area of approximately 12′ x 20′ to store equipment and materials.

• The low end of the total estimated initial investment includes a reduction in the initial franchise fee, which is available to certain qualified candidates.

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