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Spring-Green Franchise ProfileHome Services Franchises > Landscaping |
What Are the Initial Costs to Open a Spring-Green Franchise?
To start a Spring-Green franchise, you will need to consider an initial investment ranging from $116,993 to $125,999. This includes a franchise fee of $50,000. Additionally, you should have at least $50,000 in cash available and a net worth between $100,000 and $1,000,000. Understanding these financial requirements is crucial for aspiring franchisees to ensure they are adequately prepared for the investment.
What Are the Ongoing Fees for a Spring-Green Franchise?
As a Spring-Green franchisee, you will be responsible for ongoing fees, including a royalty fee of 10% on gross sales and a marketing fee of 2%. These fees are essential for maintaining brand standards and supporting marketing efforts, which can help drive customer traffic to your business. It's important to factor these costs into your financial planning to ensure sustainable profitability.
What Is the Average Revenue Potential for a Spring-Green Franchise?
Spring-Green franchises have a strong revenue potential, with an average annual revenue of approximately $943,404 per unit. The median annual revenue stands at $502,037, while some units can even achieve revenues as high as $4,030,984. This indicates that there are significant opportunities for growth and profitability within the Spring-Green franchise model, making it an attractive option for potential franchisees.
How Quickly Can You Expect to Break Even with a Spring-Green Franchise?
The breakeven time for a Spring-Green franchise is typically around 12 months, with an investment payback period of just 8 months. This quick return on investment is appealing for entrepreneurs looking to enter the franchise space, as it suggests a relatively fast path to profitability. Understanding these timelines can help potential franchisees assess the financial viability of their investment in the Spring-Green brand.
Spring-Green Franchise Financial Requirements
Below, you’ll find an overview of the initial investment needed to launch the business, along with the ongoing fees required by the franchisor to maintain operations over time.
The minimum total assets (minus liabilities) you must possess.
Net Worth Required:
The estimated period to recoup your total investment.
Investment Payback:
The initial fee paid to join the franchise system.
Franchise Fee:
Ongoing percentage of revenue paid to the franchisor.
Royalty Fee:
Regular contribution toward the franchise’s advertising fund.
Marketing Fee:
The estimated timeframe to recover your initial costs.
Breakeven Time:
The total amount required to launch the franchise.
Initial Investment:
The minimum liquid capital you must have on hand.
Cash Required:
The typical yearly revenue generated per franchise location.
Average Revenue:
The middle value of yearly revenue among franchise locations.
Median Revenue:
The largest reported annual revenue among franchisees.
Highest Revenue:
The smallest reported annual revenue among franchisees.
Lowest Revenue:
A broad sector defining similar types of franchise businesses.
Industry:
A more specific division within the broader industry.
Category:
The key individuals guiding the franchise’s strategy and growth.
Leadership:
The official business address of the franchisor’s headquarters.
Corporate Address:
Available financing options to help start the franchise.
Funding Year:
The main organization that owns the franchise brand.
Parent Company:
Spring-Green Franchise Unit Growth Summary
A breakdown of corporate, franchised, and total units, with yearly net changes.
Total Units
Franchised Units
Corporate Units
| Units | 2020 | 2021 | 2022 |
|---|---|---|---|
| Total Units | 152 | 152 | 152 |
| Net Change YoY | 0 | 0 | |
| Franchised Units | 126 | 126 | 126 |
| Net Change YoY | 0 | 0 | |
| Corporate Units | 26 | 26 | 26 |
| Net Change YoY | 0 | 0 |
Initial Investment
The Spring-Green franchise requires a low initial investment ranging from $116,993 to $125,999. This includes a franchise fee of $50,000, providing aspiring franchisees a manageable entry point into the lawn care industry. With a cash requirement of $50,000 and a net worth requirement between $100,000 and $1,000,000, potential owners can assess their financial readiness to invest in this opportunity.
Revenue Potential
Spring-Green franchises show significant revenue potential, with an average annual revenue per unit of $943,404. The median annual revenue stands at $502,037, indicating that while some units perform exceptionally well, there is a range of earnings. The highest annual revenue reported is an impressive $4,030,984, showcasing the brand's ability to generate substantial sales for dedicated franchisees.
Royalty and Marketing Fees
Franchisees are subject to a royalty fee of 10% of gross sales, along with a marketing fee of 2%. These fees contribute to the overall operational costs but also support the brand's marketing efforts and franchisee training, which are essential for driving customer acquisition and retention.
Breakeven and Payback Period
Franchisees can expect to reach their breakeven point within 12 months of operation. The investment payback period is notably short at just 8 months, allowing franchisees to recoup their initial investments quickly if they manage their operations effectively and tap into the demand for lawn care services.
Operational Structure
As of 2022, Spring-Green operates a total of 152 units, comprised of 126 franchised units and 26 corporate-owned locations. This balanced structure enables franchisees to benefit from the support of a corporate team while also enjoying the autonomy of running their own business within a proven framework.
Financial Performance
The average gross profit margin for Spring-Green franchises is 64%, with operating expenses accounting for 57.5% of revenue. This leaves an EBITDA of $61,077, or 6.5% of revenue. The financial metrics indicate that while the business can be profitable, effective management of operating costs is crucial for maximizing profitability.
Frequently Asked Questions
The initial investment for a Spring-Green franchise ranges from $116,993 to $125,999, which includes a franchise fee of $50,000.