In this exclusive Franchise Chatter FDD Talk post, you’ll learn the following:

Section I – Estimated initial investment (franchise costs) for a Heroes Lawn Care franchise, based on Item 7 of the company’s 2022 FDD

Section II – Initial franchise fee, royalty fee, and marketing fee for a Heroes Lawn Care franchise, based on Items 5 and 6 of the company’s 2022 FDD

Section III – Number of franchised and company-owned Heroes Lawn Care outlets at the start of the year and the end of the year for 2019, 2020, and 2021, based on Item 20 of the company’s 2022 FDD

Section IV – News updates on the Heroes Lawn Care franchise opportunity

Section V – Presentation and analysis of Heroes Lawn Care’s financial performance representations (average revenues and/or profits), based on Item 19 of the company’s 2022 FDD, including information on the:

• 2021 gross revenue, cost of goods sold (materials, labor), operating expenses (truck repair and maintenance, fuel, insurance, advertising, rent and utilities, bank and merchant fees, shop supplies, tools and uniforms, office supplies, phone and internet), and EBITDA for the one Heroes Lawn Care outlet currently owned and operated by the brand’s founders

• fertilization annual average customer spend, irrigation average annual customer spend, fertilization annual retention, irrigation annual retention, fertilization technician annual compensation, irrigation technician annual compensation, and general manager annual compensation for the one Heroes Lawn Care outlet currently owned and operated by the brand’s founders

Section VI – Key ratios, comparables, computations, and analyses for the Heroes Lawn Care franchise opportunity (exclusive content for Platinum subscribers)

Section I – Heroes Lawn Care Franchise Costs

• Heroes Lawn Care franchise costs (single protected territory), based on Item 7 of the company’s 2022 FDD:

• Initial Fee:  $59,500
• Insurance (90 days):  $3,000 to $5,000
• Tuition Fee:  $4,995
• Travel and Living Expenses While Training:  $1,500 to $3,500
• Opening Package:  $24,000 to $29,000
• Initial Inventory Package:  $5,000 to $15,000
• Vehicles:  $34,456 to $43,071
• Licenses, Certificates, and Permits:  $0 to $1,500
• Small Equipment:  $30,000 to $35,000
• Professional Fees:  $2,800 to $5,300
• Technology Fee:  $6,500
• Dues and Subscriptions:  $0 to $1,000
• Rent and Utilities (3 months):  $4,500 to $12,500
• Local Brand Optimization Fee (first year):  $12,000
• Creative Media Fund Fee:  $5,000
• Grand Opening Advertising Requirement:  $35,000
• Digital Management Fee (3 months):  $1,500
• National Permit Database Fee (3 months):  $297
• CRM Fee:  $1,800
• Call Center and Market Pricing Setup Fee:  $4,000
• Neighborhood Lead Generation Fee:  $15,000
• Additional Funds:  $20,000 to $40,000
• Total Estimated Heroes Lawn Care Franchise Costs:  $270,848 to $336,463

Section II – Heroes Lawn Care’s Initial Franchise Fee, Royalty Fee, and Marketing Fee

• Heroes Lawn Care’s initial franchise fee, royalty fee, and marketing fee, based on Items 5 and 6 of the company’s 2022 FDD:

• Initial Franchise Fee:  $59,500
• Royalty Fee:  the greater of: (i) 8% of Gross Revenues Collected; or (ii) the Minimum Royalty Fee (ranging from $654 per month to $1,144 per month for 1 territory, based on number of months in operation)
• Brand Fund Contribution:  if and when established, Home Clean Heroes’ then-current Brand Fund Contribution amount, which shall not exceed 3% of weekly Gross Revenues Collected. The total sum of the Brand Fund Contribution and the Royalty, as a percentage of weekly Gross Revenues Collected, shall not exceed the then-current Royalty.
• Digital Management Fee:  $500 per month for a single Protected Territory, $1,000 per month if your purchase 2 or 3 Protected Territories, $1,500 per month if you purchase 4 or 5 Protected Territories

Section III – Number of Franchised and Company-Owned Heroes Lawn Care Outlets

Franchised

2019

• Outlets at the Start of the Year:  1
• Outlets at the End of the Year:  1
• Net Change:  0

2020

• Outlets at the Start of the Year:  1
• Outlets at the End of the Year:  1
• Net Change:  0

2021

• Outlets at the Start of the Year:  1
• Outlets at the End of the Year:  1
• Net Change:  0

Company-Owned

2019

• Outlets at the Start of the Year:  0
• Outlets at the End of the Year:  0
• Net Change:  0

2020

• Outlets at the Start of the Year:  0
• Outlets at the End of the Year:  0
• Net Change:  0

2021

• Outlets at the Start of the Year:  0
• Outlets at the End of the Year:  0
• Net Change:  0

Section IV – News Updates on the Heroes Lawn Care Franchise

• Become a Heroes Lawn Care Owner

• Heroes Lawn Care Did Not Rank on Entrepreneur’s 2023 Franchise 500 List

Section V – Financial Performance Representations (Average Revenues and/or Profits) for the Heroes Lawn Care Franchise (Item 19, 2022 FDD)

• On September 1, 2021, the franchisor purchased certain assets of Heroes Management Services, LLC, d/b/a Heroes Lawn & Landscape, operating in territories in the state of Nebraska (the “Outlet”). The Outlet was, prior to the September 2021 transaction, and is currently, owned and operated by the brand’s Founder and Director of Operations, Taylor Olberding, and Founder Mike Marlow (the “Outlet Owners”).

• The Outlet first commenced operation in 2015. The Outlet previously operated under the mark “Heroes Lawn and Landscape”, and currently operates under the principal trademark “Heroes Lawn Care”. The Outlet engages in multiple service lines, including fertilization, aeration, over-seeding, irrigation repair and installation, lawn care, hardscapes, softscapes, and other general landscaping services (the “Outlet Services”). The Outlet did not offer or provide Pet Waste Removal Services during the 2021 calendar year.

• The Outlet serves as the brand’s flagship outlet and served as the base from which the franchisor created the franchise model offered under the disclosure document.

• The Outlet was in operation for the entirety of the 2021 calendar year (the “Measurement Period”). During the Measurement Period, the Outlet operated a business substantially similar to the franchised business offered under the disclosure document under the mark “Heroes Lawn and Landscape” in an area that would encompass approximately 4 Protected Territories. During the Measurement Period, the Outlet provided hardscaping, soft-scaping, and other general landscaping services directly through use of employees, and also through subcontracting arrangements.

Part 1 – Gross Revenue, Cost of Goods Sold, and Certain Expenses of the Outlet During the Measurement Period

Gross Revenue:  $2,023,637 (100.00%)

Cost of Goods Sold

• Materials:  $431,056 (21.3%)
• Labor:  $513,752 (25.4%)
• Total Materials and Labor Cost of Goods Sold:  $944,808 (46.7%)

Operating Expenses

• Truck Repair and Maintenance:  $59,074.00 (2.92%)
• Fuel:  $51,510.00 (2.55%)
• Insurance:  $67,069.00 (3.31%)
• Advertising:  $63,987.00 (3.16%)
• Rent and Utilities:  $40,200.00 (1.99%)
• Bank and Merchant Fees:  $22,922.00 (1.13%)
• Shop Supplies, Tools, and Uniforms:  $11,465.00 (0.57%)
• Office Supplies:  $7,911.00 (0.39%)
• Phone and Internet:  $6,412.50 (0.32%)
• Total Expenses:  $330,551 (16.33%)

EBITDA:  $748,278.50 (37.0%)

• “Gross Revenues” is defined as all reported revenues generated by the Outlet in offering the Outlet Services during the Measurement Period.

• “Materials” is defined as the reported cost of the materials used in the provision of the Outlet Services, and any other similar item used in the business, during the Measurement Period.

• “Labor” is defined as all reported compensation for labor used to operate the business during the Measurement Period.

• “Total Cost of Goods Sold” is defined as the sum of Materials and Labor reported incurred by the Outlet during the Measurement Period.

• “Truck Repair and Maintenance” includes all reported costs of the repair of vehicles and routine maintenance such as oil changes, tire replacements, and brakes during the Measurement Period.

• “Fuel” includes all reported fuel costs of vehicles during the Measurement Period.

• “Insurance” includes Business Liability and Auto Insurance, as wells as Workers Compensation and any other type of insurance carried by the Outlet, as reported to the franchisor by the Outlet, during the Measurement Period.

• “Advertising” includes the costs reported by the Outlet associated with marketing and advertising during the Measurement Period.

• “Rent and Utilities” includes all reported costs associated with renting a facility to serve as an office and warehouse to store the inventory, equipment, and supplies, including utility costs such as power, water, gas, trash, and any other utilities that service the rented facility during the Measurement Period.

• “Bank and Merchant Fees” includes the fees associated with the bank and merchant service providers reportedly incurred by the Outlet during the Measurement Period.

• “Shop Supplies, Tools, and Uniforms” includes all supplies, tools, equipment, and maintenance items, as well as uniforms, incurred in connection with the operation of the Outlet during the Measurement Period.

• “Office Supplies” is defined as the items used by the Outlet to run and operate the business, such as pens, paper, notebooks, envelopes, folders, tape, glue, markers, and any other related administrative expenses pertaining to offices supplies, reportedly incurred in connection with the operation of the Outlet during the Measurement Period.

• “Phone and Internet” includes the costs associated with phone and internet service, software, and hardware reportedly incurred in connection with the operation of the Outlet during the Measurement Period.

• “Total Expenses” is defined as the sum of Truck Repair and Maintenance, Fuel, Insurance, Advertising, Rent and Utilities, Bank and Merchant Fees, Shop Supplies, Tools and Uniforms, Office Supplies, and Phone and Internet.

• “EBITDA” is defined as Gross Revenues less Total Cost of Goods Sold and Total Expenses.

• “EBITDA %” is defined as EBITDA expressed as a percentage of Gross Revenues.

• The results presented in this Item 19 do not include all fees and expenses that you will incur in operating a Heroes Lawn Care franchised business. The Outlet did not pay any recurring fees to the franchisor or to any of its affiliates. Among other fees and expenses, you will incur the following as a Heroes Lawn Care franchisee:

• a. Call Center and Digital Sales Fee;
• b. Call Center and Market Pricing Setup Fee;
• c. Technology Fee;
• d. Royalties and/or Minimum Royalty Fees;
• e. Local Brand Optimization Fee;
• f. Accounting Service Fee;
• g. Grand Opening Advertising Requirement;
• h. Franchise Rocket Monthly Digital Management Fee;
• i. Administrative Fees;
• j. Annual Conference Fee;
• k. Neighborhood Lead Generation Fees;
• l. Training Fees; and
• m. National Permit Database Fee.

Part 2 – Summary of Measurement Period Key Performance Indicators for the Outlet

• Fertilization Annual Average Customer Spend:  $475
• Irrigation Average Annual Customer Spend:  $275
• Fertilization Annual Retention:  85%
• Irrigation Annual Retention:  90%
• Fertilization Technician Annual Compensation:  $50,750
• Irrigation Technician Annual Compensation:  $56,000
• General Manager Annual Compensation:  $60,500

• “Fertilization Annual Average Customer Spend” is defined as the annual average dollars spent per transaction for fertilization jobs performed on residential homes during the Measurement Period.

• “Irrigation Average Annual Customer Spend” is defined as the annual average dollars spent per transaction for irrigation jobs performed on residential homes during the Measurement Period.

• “Fertilization Annual Retention” is defined as the percentage of annual fertilization jobs that were retained from the 2020 calendar year (hereinafter, for purposes of this Item 19, the “previous year”).

• “Irrigation Annual Retention” is defined as the percentage of annual irrigation jobs that were retained from the previous year.

• “Fertilization Technician Annual Compensation” is defined as the average total annual compensation Fertilization Technician received during the Measurement Period for compensation; this includes an annual salary and other incentives.

• “Irrigation Technician Annual Compensation” is defined as the average total annual compensation Irrigation Technician received during the Measurement Period for compensation; this includes an annual salary and other incentives.

• “General Manager Annual Compensation” is defined as the average total annual compensation General Manager received during the Measurement Period for compensation; this includes an annual salary and other incentives.

• The financial performance representation does not contain complete information concerning the operating costs and expenses that you will incur in operating your Heroes Lawn Care Business. Operating costs and expenses may vary substantially from business to business.

• In addition to the items noted above, the above figures exclude, among other costs and expenses, payroll, payroll taxes, owner compensation/salary, healthcare, employee benefits, uniforms, office supplies, certain equipment costs associated with running your own crews, postage, travel and entertainment expenses, late fees, training fees, and other fees and expenses which you will incur as a franchisee.

• The above figures exclude tax liabilities that you will be responsible for.

• Some outlets have earned this amount. Your individual results may differ. There is no assurance you’ll earn as much.

Section VI – Heroes Lawn Care Franchise Ratios, Comparables, Computations, and Analyses (Exclusive Content for Platinum Subscribers) ⬇️