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Earnings Claims of Top Franchises Revealed

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Franchise Costs: Detailed Estimates of Monster Tree Service Franchise Costs (2016 FDD)

by Franchise Chatter on April 1, 2015

in Franchise Costs, Tree Care Franchise

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Monster Tree Service Truck

This post was updated on September 16, 2016 to reflect information from Monster Tree Service’s 2016 FDD (Item 7).

Detailed Estimates of Monster Tree Service Franchise Costs Based on Item 7 (Estimated Initial Investment) of Monster Tree Service’s 2016 Franchise Disclosure Document

1.  Initial Franchise Fee:  $39,995

  • The Initial Franchise Fee is for a territory of 250,000 population. Additional contiguous territory can be purchased in 10,000 population increments at a cost of 16.8 cents per person.

2.  Technology Fee:  $125 to $1,500 (prorated)

3.  Your Training Expenses:  $500 to $2,000

  • The cost of the Initial Management Training Program for up to 2 people is included in the Initial Franchise Fee.
  • The chart estimates the costs for transportation, lodging, and meals for your trainees. These incidental costs are not included in the Initial Franchise Fee.

4.  Rent:  $0 to $2,500

  • Your Monster Tree Business is operated out of your home. This expense is an estimate if you are required to rent space to park your vehicles and store your small equipment. This reflects 3 months of rent for vehicles.
  • The Tree Business is a home-based business. Monster Tree Service cannot estimate what you would pay if you seek to operate your business from somewhere other than your home. You would incur costs such as rent, utilities, leasehold improvements, signage, furniture, and other costs of owning or operating a storefront or office location that are not a part of the Monster Tree System.

5.  Office Expenses:  $1,000 to $3,000

  • The figures on this chart reflect the estimated range to purchase new furniture and fixtures, including such items as desks, tables, chairs, shelving, filing cabinets, lighting, and decor for a home office. The cost of furniture and fixtures will vary depending on suppliers.

6.  Graphics:  $3,000 to $5,000

  • The figures on the chart reflect the estimated range for decals and vehicle wraps.

7.  Business Licenses and Permits:  $100 to $500

  • This estimate includes the cost of local business licenses that typically remain in effect for 1 year. The costs of permits and licenses will vary by location.

8.  Computer, Phone, and Fax Systems:  $700 to $3,000

  • Monster Tree Service requires you to purchase computer systems and software meeting its minimum specifications for use at your Tree Business.
  • This estimate includes the cost of the software packages, your office computer, a tablet computer, a telephone, a printer/scanner machine, and a smartphone.
  • You must also have Internet and other telecommunications equipment and services in accordance with Monster’s standards to permit electronic transmission of sales information.

9.  Small Equipment and Tools:  $22,000 to $45,000

  • The equipment required for your Tree Business includes power tools and hand tools necessary to operate the business. It also includes plant health care injection equipment.
  • The low estimate in the chart is based on purchasing costs of all required equipment. The high estimate is based on the purchase of up to two times the required equipment if you wished to purchase more equipment than is required.
  • You may lease some equipment, at your option, subject to leasing availability.

10.  Vehicles, Trailers, and Production Equipment:  $27,352 to $65,771

  • The vehicles required for your Tree Business include a chip trucker and chipper. Other vehicles you may or may not choose to own for the operations of your Tree Business include a masonry dump truck, dual axle trailer, skid loader, and stump grinder.
  • All estimates are based on a 20% deposit, a 60-month term, and interest at 8% for 3 months. Your deposit, term, and interest may vary.
  • You may rent vehicles, at your option, subject to availability.
  • Monster Tree Service does not require that you purchase all vehicles allowed in the Tree Business at the time of franchise purchase and your costs may be lower if you choose not to purchase any vehicles other than the chipper and chip truck.
  • There are two vehicles, Bucket Truck and Crane, which may occasionally be used in the operation of the Tree Business. The franchisor does not recommend that you purchase these vehicles. If either is needed, they can be rented, along with a trained operator.

11.  GPS Tracker Service:  $270 to $315

  • All vehicles used in the Tree Business must be equipped with a GPS tracking system. The monthly cost per vehicle is approximately $30 to $35 per vehicle. This estimate assumes three months of service for three required vehicles. GPS allows you to monitor efficiencies in your business.

12.  Professional Fees:  $0 to $6,000

  • You may incur professional fees depending on the scope of work performed, which may include, legal and accounting fees to review franchise documents and costs of forming a separate legal entity.

13.  Initial Advertising:  $6,000 to $14,000

  • Beginning at least 2 weeks before the scheduled opening of your tree business and continuing for 60 days after the opening, Monster Tree Service requires you to spend at least $60,000 on local advertising and promotional activities to promote your Tree Business.
  • After the initial opening advertising, you are required to spend at least 10% of your Gross Sales per month on local advertising.

14.  Insurance:  $2,000 to $5,000

  • Before you open for business, you must purchase and maintain at your sole cost and expense the insurance coverage that Monster Tree Service specifies.
  • This includes comprehensive general liability insurance; umbrella excess liability coverage; property and casualty insurance; business interruption insurance; and, if you have employees, statutory workers’ compensation insurance, crime insurance for employee dishonesty, and employer’s liability insurance.
  • The estimate in this chart is for 3 months of insurance coverage.

15.  Operating Expenses/Additional Funds – 4 Months:  $15,000 to $25,000

  • The estimate of additional funds for the initial phase of your business includes staff salaries and operating expenses for the first 3 months. If you have fewer employees initially, these monthly expenses may be reduced.
  • This estimate does not include an owner’s salary or draw.
  • Monster Tree Service relied upon the experience of its affiliate-owned Tree Business to compile these estimates.

16.  Total Estimated Initial Investment:  $118,042 to $218,581

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