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1. Lawn care is
part of the rapidly growing Green Industry
While growth has been fueled by expansion of the housing market over the last
several years, demographic trends indicate growth that will extend beyond the
housing boom, with an increasingly greater percentage of homeowners hiring a
professional lawn and landscape maintenance company.
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Maturing Baby Boomers with more disposable income and an
increasing priority on enjoying life will continue to employ the services of
our industry in greater numbers to ease the burdens of maintaining their homes.
Additionally, growing numbers of dual-income families will continue to look to
lawn care service providers to help them free up more time in which to enjoy
the pleasures of family and home life.
Working in conjunction with favorable demographic trends is the consumer's
recognition of lawn care as a truly compelling value when compared to the
retail cost of products, the hassle of mixing and applying those products and
the angst of uncertain results incurred by the do-it-yourselfer.
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Even as the average size of the U.S. lawn decreases, more families are
contracting out for lawn service, according to data from the Vermont-based
National Gardening Association
In 2003,
17% or 19.4 million households hired a professional lawn and landscape
maintenance company, up from 15% in 2000 and 13% in 1998
The total
spent by homeowners for these services has risen from $7.9 billion in 1998 to
$9.7 billion in 2000 to $11.2 billion in 2003
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2. High
Margins
Mowing, installation work and fertilization were the highest ranked services in
a recent Lawn & Landscape survey, Research USA study, reported by Lawn and
Landscape Market Trends 2001. Weed Man franchisees reported Gross Margins
averaging 53.8% in its current Uniform Franchise Offering Circular. Please
refer to Item 19 in the Weed Man UFOC for more specific information.
3. Limited Capital
Investment
Both the initial as well as the on-going investment in real estate, fixtures
and equipment is low relative to the capital requirements of most businesses.
4. Recurring
Revenues
A well-run lawn care company automatically renews the vast majority of
customers from year to year, allowing the company to focus marketing efforts on
net growth.
5. Strong Cash
Flow
Beginning in the fall of the previous service year, 15-30% of customers
ultimately prepay prior to the start of current year services, while very
favorable 30-day to 180-day terms are available from major suppliers. It is not
uncommon for the vast majority of customer payments for spring services to have
been received before a company's invoices from suppliers for the materials used
in those spring services is due.
6. Barriers
to Entry
State licensing requirements, while very manageable in most states, do create
enough of a barrier to restrict competition from small operators and companies
whose primary focus is not lawn care.
7. Limited Exposure to
Recession
With the average annual cost of service less than $300 per year, lawn care is a
small slice of the consumer's disposable income and one of the last budget
items to be cut when belt-tightening is necessary. Also shielding lawn care
from exposure to recession is its high perceived value as a low-cost service
that enhances both property value and pride of ownership.
8. Adaptability to Management Systems.
Lawn care's narrow focus on growing and protecting healthy turf limits the
business' complexity and allows it to be distilled down to a limited number of
repetitive tasks faced by production, administrative and sales staff. These
tasks are very adaptable to systems that improve profitability, increase sales
and reduce the strains on management.
None of the communications made through
this Web site are directed to the residents of any jurisdiction requiring
registration of the Weed Man franchise before it is offered and sold in that
jurisdiction. Nor may these communications be construed as an offer to sell any
Weed Man franchise in such jurisdictions.
No Weed Man franchises will be sold to any resident of any such jurisdiction
until
(1) the offering has been duly registered in and declared effective by, such
jurisdiction and the required Uniform Franchise Offering Circular has been
delivered to the prospective franchisee before the sale, all in compliance with
applicable law or
(2) the offering has been exempted from the requirements of these jurisdictions
If you have any questions concerning the registration status of the Weed Man
franchise program in your jurisdiction, please write to:
Don W Dankowich,
11 Grand Marshall Dr, SCARBOROUGH, ON M1B5N6,
Canada.
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