Tree Service Franchise Requirements

It’s not as easy just typing keywords like “tree service franchise” and “requirements” or “franchise cost” on search engines (although if that’s how you found us, congratulations!) The very first thing you need to do after that is to have a goal in mind. And remember, you won’t own the business, but just help expand one and benefit from it.

There are rules set by both the franchisors and the government you need to follow.

Tree Service Franchise ______

What are the requirements to qualify for a Tree Service Franchise?

Once you’ve decided to take a chance on a tree service franchise, make a checklist for the requirements. A tree service franchise —like any other franchise— needs capital (money) to start, along with a clear business plan, vision, possibly partners, and the risk you’re willing to take on, along with the time.

We’ve prepared a clear rundown of the requirements for your new tree service franchise.

Learn Your Tree Franchise Requirements

Net Worth &
Working Capital
Requirements

A franchise has a lot of advantages to starting your own business, especially when it comes to the established brand you’re joining, the know-how, the standardized procedures, and other factors. But it can be just as much an investment as starting up your own, although most franchises, in the end, can cost a bit less; especially if you manage to have partners to help with the financing.

For your tree service franchise, you’ll need a minimum amount of capital to start up or to take you seriously. You can be asked to have a minimum of $25,000 to $500,000 or more, although the average for a tree service franchise is more in the range of $100,000 to $200,000 dollars required to start it.

Required Assets

Sometimes, a franchisor will require you to have a certain net worth or assets to your name. It’s another way for a franchisor to decide if they are going to go into business with you. Your properties, your liquidity, stocks, etc. Sometimes, the net worth requirement can be just as large as the cost of starting the business itself. For a tree service franchise, $350,000 of net worth is usually required.

Liquid Assets

Liquidity or liquid assets is the cash on hand or the capital you have ready to invest in the franchise. Like when a landlord is asking prospective tenants for proof of income and a deposit plus the first month’s rent. A tree service franchise might ask for at least $100,000 in liquid assets.

Financing Requirements

You will also need to qualify, or show you can qualify, for loans and credit lines in order to cover certain expenses, like maintenance, equipment, training, etc. A good credit score is a must before even being considered as a candidate for a franchise. The franchisor can also help you by introducing you to local lenders or you can go and ask for help from the Small Business Administration, which helps you qualify for a franchise loan from banks or some other lending institution. Find out more about that here.

Having partners is always a good option if you don’t want to take all the risk yourself. Having partners comes with more risk also, since it’s not just you who will be scrutinized by the parent company, but your partner or partners as well.

Net Worth & Working Capital Requirements ______

Skills &
Experience

Of course, having the required net worth and capital is also a sign of skill and experience in managing finances well, but the main skill that every franchisor looks for in a potential franchisee is good management, followed by experience with the local market, which is why businesses are interested in franchising in the first place.

Also, remember that the franchisor isn’t just in the tree service franchise business to teach others about their experience, but to learn from the franchisor. So a skill with innovation and taking risks might also be worthwhile for the franchisor.

Business Management

It’s going to be hard to convince a tree service franchise to take a risk with you if you don’t have any experience or proven skills with business management, either as an employee, supervisor or owner of a previous business. Having the required capital and net worth won’t be enough if you’ve never proven to be a good manager or part of another small to a large business in any way.

A degree in business management certainly helps but proven real-world experience is even better.

Tree Service: Removal & Trimming

It also helps to have some experience with some other home improvement or real estate maintenance service, either as an employee or manager. Your personality will have to be one that helps you deal with customers but also with bureaucracy, so patience is a must, as well as drive and even innovation.

If you love the outdoors as well and not having to depend as much on technology and fads, then a tree service franchise is also for you.

Certified Arborist

Any good franchise includes a training program for franchisees, in order to guarantee that quality, standards, and rules are upheld. A good tree franchise offers a comprehensive training program that includes a certified arborist helping the manager and another employee by teaching you:

Safety and Equipment Usage:

  • Public and Employee Relations
  • Budgeting and Business Planning
  • Supplies and Purchasing
  • Bookkeeping and Financial Controls
  • Advertising and Sales Strategies
  • Operations and Daily Management
  • Computer and Internet

A tree service franchise can offer:

  • Multiple Revenue Streams
  • High Repeat Sales
  • Great Profit Margins
  • Scalable Growth
  • Normal Hours

If you are looking for a solid, sustainable business model that is fun to operate and makes money, and can see yourself in business with the nations’ number one Tree Care franchise, Tree Service franchise might be the perfect franchise for you.

If you’re interested in learning more about opening a
Tree Service Franchise.