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 2024 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 2024 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 2021, 2022, and 2023, based on Item 20 of the company’s 2024 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 2024 FDD, including information on the:
- 2023 total gross sales, fertilization sales, irrigation sales, landscaping sales, and other sales for the 7 Heroes Lawn Care franchisees (including the Founder Business) that were in operation for the entire 2023 calendar year
- 2023 total gross sales, residential sales, and commercial sales for the 7 Heroes Lawn Care franchisees (including the Founder Business) that were in operation for the entire 2023 calendar year
- 2023 average ticket and number of jobs by category (fertilization sales, irrigation sales, landscaping sales, and other sales) for the 7 Heroes Lawn Care franchisees (including the Founder Business) that were in operation for the entire 2023 calendar year
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 2024 FDD:
- Initial Fee: $59,500
- Insurance (90 days): $3,000 to $7,500
- Tuition Fee: $4,995
- Travel and Living Expenses While Training: $1,500 to $2,000
- Royalty Fee: $5,400
- Opening Package: $2,600
- Initial Inventory Package: $5,000 to $12,000
- Equipment Package: $6,880
- Utilities (90 days): $200 to $500
- Vehicles: $28,700 to $32,900
- Licenses, Certificates, and Permits: $500 to $3,000
- Professional Fees: $0 to $5,000
- Dues and Subscriptions: $0 to $1,500
- Brand Marketing Fee: $15,000
- Marketing and Advertising Expense: $6,000 to $12,000
- Zee Partnerships Fee: $3,000
- Additional Funds: $12,000 to $25,000
- Total Estimated Heroes Lawn Care Franchise Costs: $154,275 to $198,775
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 2024 FDD:
- Initial Franchise Fee: $59,500
- Royalty Fee: flat-rate Royalty Fee based on total number of Protected Territories and total years in operation for Years 1 and 2; thereafter, the greater of: (i) 6.5 % Gross Revenues Collected; or (ii) the Minimum Royalty Fee
- Brand Marketing Fee: the then-current Brand Marketing Fee; currently, the Brand Marketing Fee is $15,000
Section III – Number of Franchised and Company-Owned Heroes Lawn Care Outlets
Franchised
2021
- Outlets at the Start of the Year: 2*
- Outlets at the End of the Year: 2
- Net Change: 0
2022
- Outlets at the Start of the Year: 2
- Outlets at the End of the Year: 7
- Net Change: +5
2023
- Outlets at the Start of the Year: 7
- Outlets at the End of the Year: 20
- Net Change: +13
*Two Outlets are currently owned and operated by a limited liability company owned entirely by Taylor Olberding and Mike Marlow, Home Clean Heroes’ Founders. These Two Outlets are not “company-owned” outlets, as they are not under common control with Franchisor.
Company-Owned
2021
- Outlets at the Start of the Year: 0
- Outlets at the End of the Year: 0
- Net Change: 0
2022
- Outlets at the Start of the Year: 0
- Outlets at the End of the Year: 0
- Net Change: 0
2023
- 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
Section V – Financial Performance Representations (Average Revenues and/or Profits) for the Heroes Lawn Care Franchise (Item 19, 2024 FDD)
- As of December 31, 2023, there were 20 franchised businesses in operation. Seven of these 20 franchisees were in operation for the entire 2023 calendar year. This Item 19 financial performance representation discloses certain Gross Sales information for all seven of the franchisees that were in operation for the entire 2023 calendar year (the “Item 19 Franchisees”).
- One of the Item 19 Franchisees is owned and operated by Heroes Lawn Care’s founders, Taylor Olberding and Mike Marlow (the “Founder Business”).
- On September 1, 2021, the franchisor purchased certain assets of the Founder Business, Heroes Management Services, LLC, d/b/a Heroes Lawn & Landscape, operating in territories in the state of Nebraska. The Founder Business first commenced operation in 2015 and previously operated under the mark “Heroes Lawn and Landscape.” The Founder Business currently operates under the principal trademark “Heroes Lawn Care” and offers substantially similar products and services as the Heroes Lawn Care Business you will operate.
- The Founder Business engages in multiple service lines, including Lawn Care Services (defined below) and Irrigation Services (defined below), and operates two outlets in an area that would encompass approximately five protected territories.
- Additionally, the Founder Business engages in landscape mulching, hardscapes, softscapes, and other landscape services, lawn mowing, snow removal, and mosquito services, directly through use of employees and subcontracting arrangements (the “Ancillary Services”). The Ancillary Services do not fall within the scope of the definitions of Lawn Care Services or Irrigation Services, and you are not authorized to offer the Ancillary Services under the terms of your Franchise Agreement.
- The Founder Business serves as the company’s flagship outlet and served as the base from which Heroes Lawn Care created the franchise model offered under the Disclosure Document.
- This Item 19 sets forth historical revenue and cost information for the Item 19 Franchisees, including the Founder Business during the Measurement Period. The Item 19 Franchisees provided Heroes Lawn Care with unaudited financial information for the Measurement Period. Heroes Lawn Care based the historical financial performance information presented in this Item 19 on this unaudited financial information and it did not audit or otherwise independently verify this information.
Part 1 – Total Gross Sales and Gross Sales by Category (Fertilization, Irrigation, Landscaping, and Other)
Reporting Location: HLC 100
- Number of Territories: 5
- Year Opened: 2021
- Total Gross Sales: $2,253,325.20
- Fertilization Sales: $262,298.92
- Irrigation Sales: $406,655.16
- Landscaping Sales: $995,326.06
- Other Sales: $589,045.06
Reporting Location: HLC 101
- Number of Territories: 1
- Year Opened: 2021
- Total Gross Sales: $223,011.14
- Fertilization Sales: $172,158.82
- Irrigation Sales: $11,572.53
- Landscaping Sales: $24,400.79
- Other Sales: $14,879.00
Reporting Location: HLC 102
- Number of Territories: 4
- Year Opened: 2022
- Total Gross Sales: $149,943.41
- Fertilization Sales: $64,687.62
- Irrigation Sales: $18,985.24
- Landscaping Sales: $61,831.99
- Other Sales: $4,438.56
Reporting Location: HLC 103
- Number of Territories: 4
- Year Opened: 2022
- Total Gross Sales: $363,024.06
- Fertilization Sales: $133,601.51
- Irrigation Sales: $9,465.24
- Landscaping Sales: $216,036.83
- Other Sales: $3,920.48
Reporting Location: HLC 104
- Number of Territories: 3
- Year Opened: 2022
- Total Gross Sales: $203,908.41
- Fertilization Sales: $174,741.53
- Irrigation Sales: $21,498.68
- Landscaping Sales: $4,413.00
- Other Sales: $3,225.20
Reporting Location: HLC 105
- Number of Territories: 3
- Year Opened: 2022
- Total Gross Sales: $180,123.52
- Fertilization Sales: $111,316.74
- Irrigation Sales: $54,858.24
- Landscaping Sales: $5,455.86
- Other Sales: $8,492.68
Reporting Location: HLC 108
- Number of Territories: 4
- Year Opened: 2022
- Total Gross Sales: $110,299.00
- Fertilization Sales: $59,137.46
- Irrigation Sales: $9,090.75
- Landscaping Sales: $38,760.79
- Other Sales: $3,310.00
Average for 6 Franchise Locations (Excluding the Founder Business)
- Number of Territories: 3.2
- Total Gross Sales: $205,051 (100.0%)
- Fertilization Sales: $119,273 (58.2%)
- Irrigation Sales: $20,911 (10.2%)
- Landscaping Sales: $58,482 (28.5%)
- Other Sales: $6,382 (3.1%)
- “Total Gross Sales” is defined all revenue generated by the Item 19 Franchisees over the 2023 calendar year, from January 1, 2023, to December 31, 2023, as reported to Heroes Lawn Care by the Item 19 Franchisees. The term “Gross Sales” does not include (a) tips paid directly to subcontractors or other personnel, or (b) sales tax that is collected directly from customers and paid to the appropriate taxing authority.
- “Irrigation Sales” is defined as the total gross sales for commercial and residential irrigation jobs performed during the 2023 calendar year, as reported to Heroes Lawn Care by the Item 19 Franchisees.
- “Fertilizer Sales” is defined as the total gross sales for commercial and residential fertilizer jobs performed during the 2023 calendar year, as reported to Heroes Lawn Care by the Item 19 Franchisees.
- “Landscaping Sales” is defined as the total gross sales for commercial and residential landscaping jobs performed during the 2023 calendar year, as reported to Heroes Lawn Care by the Item 19 Franchisees.
- “Other Sales” is defined as the total gross sales for other commercial and residential jobs performed during the 2023 calendar year, which may include snow removal services, mowing services, as reported to Heroes Lawn Care by the Item 19 Franchisees.
- The Item 19 Franchisee identified as HLC 100 in Part 1 is the Founder Business, which, as disclosed in the introductory paragraphs of this Item 19, is a mature business that originally launched its business operations in 2015 under a different mark and converted to a Heroes Lawn Care Business in 2021.
Part 2 – Total Gross Sales and Gross Sales by Segment (Residential and Commercial)
Reporting Location: HLC 100
- Number of Territories: 5
- Year Opened: 2021
- Total Gross Sales: $2,253,325.20
- Residential Sales: $1,163,970
- Commercial Sales: $1,089,355
Reporting Location: HLC 101
- Number of Territories: 1
- Year Opened: 2021
- Total Gross Sales: $223,011.14
- Residential Sales: $137,222
- Commercial Sales: $85,790
Reporting Location: HLC 102
- Number of Territories: 4
- Year Opened: 2022
- Total Gross Sales: $149,943.41
- Residential Sales: $148,292
- Commercial Sales: $1,652
Reporting Location: HLC 103
- Number of Territories: 4
- Year Opened: 2022
- Total Gross Sales: $363,024.06
- Residential Sales: $269,459
- Commercial Sales: $93,565
Reporting Location: HLC 104
- Number of Territories: 3
- Year Opened: 2022
- Total Gross Sales: $203,908.41
- Residential Sales: $203,815
- Commercial Sales: $94
Reporting Location: HLC 105
- Number of Territories: 3
- Year Opened: 2022
- Total Gross Sales: $180,123.52
- Residential Sales: $178,854
- Commercial Sales: $1,270
Reporting Location: HLC 108
- Number of Territories: 4
- Year Opened: 2022
- Total Gross Sales: $110,299.00
- Residential Sales: $106,299
- Commercial Sales: $4,000
Average for 6 Franchise Locations (Excluding the Founder Business)
- Number of Territories: 3.2
- Total Gross Sales: $205,051 (100.0%)
- Residential Sales: $173,990 (84.9%)
- Commercial Sales: $31,062 (15.1%)
Part 3 – Average Ticket and Number of Jobs for Fertilization, Irrigation, Landscaping, and
Other
Reporting Location: HLC 100
- Number of Territories: 5
- Year Opened: 2021
- Fertilization – Average Ticket: $78.91
- Fertilization – Number of Jobs: 3,324
- Irrigation – Average Ticket: $286.38
- Irrigation – Number of Jobs: 1,420
- Landscape – Average Ticket: $969.16
- Landscape – Number of Jobs: 1,027
- Other – Average Ticket: $176.57
- Other – Number of Jobs: 3,336
Reporting Location: HLC 101
- Number of Territories: 1
- Year Opened: 2021
- Fertilization – Average Ticket: $68.88
- Fertilization – Number of Jobs: 168
- Irrigation – Average Ticket: $531.35
- Irrigation – Number of Jobs: 324
- Landscape – Average Ticket: $1,626.72
- Landscape – Number of Jobs: 15
- Other – Average Ticket: $29.52
- Other – Number of Jobs: 504
Reporting Location: HLC 102
- Number of Territories: 4
- Year Opened: 2022
- Fertilization – Average Ticket: $54.40
- Fertilization – Number of Jobs: 349
- Irrigation – Average Ticket: $214.91
- Irrigation – Number of Jobs: 301
- Landscape – Average Ticket: $1,145.01
- Landscape – Number of Jobs: 54
- Other – Average Ticket: $10.00
- Other – Number of Jobs: 444
Reporting Location: HLC 103
- Number of Territories: 4
- Year Opened: 2022
- Fertilization – Average Ticket: $139.19
- Fertilization – Number of Jobs: 68
- Irrigation – Average Ticket: $633.18
- Irrigation – Number of Jobs: 211
- Landscape – Average Ticket: $3,857.80
- Landscape – Number of Jobs: 56
- Other – Average Ticket: $38.44
- Other – Number of Jobs: 102
Reporting Location: HLC 104
- Number of Territories: 3
- Year Opened: 2022
- Fertilization – Average Ticket: $67.39
- Fertilization – Number of Jobs: 319
- Irrigation – Average Ticket: $451.53
- Irrigation – Number of Jobs: 387
- Landscape – Average Ticket: $735.50
- Landscape – Number of Jobs: 6
- Other – Average Ticket: $20.47
- Other – Number of Jobs: 159
Reporting Location: HLC 105
- Number of Territories: 3
- Year Opened: 2022
- Fertilization – Average Ticket: $87.77
- Fertilization – Number of Jobs: 625
- Irrigation – Average Ticket: $300.05
- Irrigation – Number of Jobs: 371
- Landscape – Average Ticket: $126.88
- Landscape – Number of Jobs: 43
- Other – Average Ticket: $18.19
- Other – Number of Jobs: 467
Reporting Location: HLC 108
- Number of Territories: 4
- Year Opened: 2022
- Fertilization – Average Ticket: $82.64
- Fertilization – Number of Jobs: 110
- Irrigation – Average Ticket: $480.79
- Irrigation – Number of Jobs: 123
- Landscape – Average Ticket: $236.35
- Landscape – Number of Jobs: 164
- Other – Average Ticket: $61.30
- Other – Number of Jobs: 54
Average for 6 Franchise Locations (Excluding the Founder Business)
- Number of Territories: 3.2
- Fertilization – Average Ticket: $83.38
- Fertilization – Number of Jobs: 273
- Irrigation – Average Ticket: $435.30
- Irrigation – Number of Jobs: 286
- Landscape – Average Ticket: $1,288.04
- Landscape – Number of Jobs: 56
- Other – Average Ticket: $29.65
- Other – Number of Jobs: 288
- 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) ⬇️
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