Tree Service Business is The Perfect Low Investment Franchise For Beginners

By Tree Service Franchise Guide

A tree care or service business is an excellent opportunity for somebody looking for a low investment franchise. Once the first steps are taken, the results can be incredible, as a tree service franchise is the perfect low investment franchise for beginner entrepreneurs. Being a bit skilled in the technical aspects of tree care business might help you thrive, but all you truly need is the experience and the knowledge about managing a business, of any kind.

A local tree service business can grow large if its business plan is capable of serving multiple areas.

A tree service allows franchisees to enter the business at a smaller level and expand as the business grows. As a franchisee, you can offer:

  • Tree pruning and trimming
  • Stump grinding
  • Emergency services
  • Land and lot clearing
  • Plant healthcare
  • Tree removal
  • Maintenance of shrub

The Advantages of a Low Investment Franchise

The Advantages of a Low Investment or Low Cost Franchise

While low cost franchises do pose some risks compared to their pricier counterparts, they offer several other ones that are hard to ignore: versatility, accessibility, higher revenues, scalability, and resilience.

Since low cost franchises are usually home-based companies and do not need plenty of resources, revenues can be generated quicker. Investing in a low cost franchise gives you a low-risk opportunity to grow.

Very Beginner Friendly

A franchise has a lot of advantages over starting your own business, especially when it comes to the established brand you’re joining, the knowhow, the standardized procedures, a brand customer’s trust, and other factors. But it can be just as much an investment as starting up your own business, although most franchises, in the end, can cost a bit less. Low investment franchises tend to be very beginner-friendly, which means that anyone willing to do it will most certainly succeed in the mission. It’s only a matter of doing things right and with assessment since the beginning. 

Little-to-None Employee Training Necessary

Once you manage to enter the franchise world, you may wonder, what about employees? Should I train them? The answer is no, as most franchises tend to provide training to all franchisee employees that come to be. As an investor in a franchise, you have the right to get all you need from the franchisor to start working. And compared to larger and more complex franchises, a low investment one like a tree service franchise requires training that is quick and simpler. 

Wide Variety of Options

There is a wide variety of options so that anyone can start their franchise with an easy franchising process.  And low investment franchises are usually from very diverse industries. They can be anything from a shoe store to a tree services, or even yoga classes. There are thousands to choose from in the United States, with more opportunities than the more popular and established franchises that might generate a lot of revenue but small profit margins month to month.

Tree Service Franchise

The tree service industry is a highly profitable industry that sees large profit margins within several months or even weeks of being established.  Any tree service franchise is happy to provide a detailed description of their earnings and financial health through its Franchise Disclosure Document (FDD). Some of the best franchises even include the Financial Performance Representations report, which focuses on the detailed information from all franchise locations, the average, high, and even low performing franchise locations. (Read more about the advantages of owning a tree franchise here)

What Does a Monster Tree Service Franchise Cost?

  • Cash Required: $100,000
  • Net Worth Required:$350,000
  • Total Investment: $160,815 – $266,429 
  • Franchise Fee:$49,500

Easy to Finance And Run

A wide number of companies provide personalized funding options for their franchisees exclusively through agreements with particular investors or the procurement of capital directly from the company, which makes it one of the most successful means of funding a franchise.

You may not have to look for funding much more if you partner with a franchisor that has their funding program. After all, who knows the business better than the franchisor? Low investment franchises can be easy to finance and run if you give it a shot. 

What Costs to Expect

What Costs to Expect?

In franchising, you can spend a lot or a little, and still make money. Once you’ve decided that you want a franchised business, and what industry segment you’d like to work in (fast food, home repair, pet care, etc.), it’s time to determine what you can afford. Your “budget” will limit your choices.

Franchise Fee

Most franchise fees are between $20,000 and $50,000. In some cases, you may see franchise fees less than $20,000; these types of franchise opportunities are usually home-based or mobile franchises. The franchise fee usually covers the cost of training (not including travel expenses), plus support and site selection. The franchise fee, in conclusion, is the amount a potential franchisee pays to have the rights to a franchise location. 

How much does a franchise fee average?

Then, of course, the franchise fee is paid, which includes the one-time price of entry for the use of the franchisor’s name, operating system, continuous support for management, training, marketing, and much more. Franchise charges are typically between $20,000 and $30,000, although the higher-end and more popular brands can be as high as $100,000. When opened, ongoing royalties must be charged, typically from 4 to 8% of gross revenue, and includes a continuous assessment for an interactive marketing and advertising fund (around 2 to 4%).

Initial Investment

To become a franchisee, most franchise companies demand a new franchisor to pay a one-time first rate. This fee can vary from $10,000, to $15,000, or to over $100,000, occasionally. For a single unit, the average or standard initial franchise fee is approximately $20,000.

At the bottom end, you can reach a $10,000 or less into a home-based or mobile concept. Hotels, including the land, cost up to $5,000,000 at the high end. Restaurants are full-service, ranging from $750,000 to or over $3 million. Restaurants for fast meals have cost between $250,000 and $1 million. Fitness and repair facilities range from $200,000 to $300,000, while tree service franchises cost up to $100,000. Please note that these are typical spectrums, and the entry costs differ between brands.

Ongoing Investment

While the cost of entry to the franchise and the ongoing costs may seem substantial, starting your own company often costs money. One of the benefits of choosing a franchised company is that you join the launch and potential costs with your eyes wide open. Franchisors can provide you with a very exact image of the start-up cost, the on-going expenditures, and the reasonable estimation of when your sales are going to be positive.

After the fees and the monthly royaltees, you will also be expected to cover the cost of buying or leasing equipment, retail space if needed, machinery, marketing materials, etc. Plus, you must have a minimum net worth and liquid capital on hand. 

Personal Finances  

Once you have read the literature, done your due diligence, considered the numbers, and know what to do when starting a business as a franchise, then you are safe to start your business journey. But first, you need to address one question before you sign on the dotted line: Where will you get the money for the franchise to finance?

When approaching a franchisor, the first thing that you want to do is assess what your net value is. Use a personal balance sheet to list both your assets and liabilities. To do this, please write down your balance sheets. List all your holdings, including the cash in hand, checking accounts, savings accounts, immovables (current market values), vehicles (whether or not paid off), shares, stocks, the premium cash value, and other assets.

Liabilities are the second part of the balance sheet. Please take the same measure. List your current bills, taxes, home mortgage, car loans, corporate finance, and so on. Subtract from your assets your liabilities, and then take a good look at your credit rating. All prospective lenders or franchisors search for three common elements in a loan rating: reliability, income, and track record.

Checking your finances is vital for beginners; do this process well, and everything that comes next will be ideal. 

 

Summarize 

If you want to start in the franchise world with a low investment franchise, then a tree service franchise can be a great choice. First, you should speak to an experienced franchising consultant in tree services, who will help you decide which tree service franchise is the right one for you and whether you have the experience or expertise to run a small business. 

You will then get in touch with a franchise and let them know you want to buy it. Afterward, you can ask for information about the franchise, including how much fees, premiums you have to pay, what you have to spend to open the site, and how much net worth is needed, as well as incurring in digital marketing issues. The franchisor will then accept you and help you set up a site as a potential franchisee.

Why a tree service franchise?

A tree service franchise offers a lot of high-profit margins, and it does not suffer from any market saturation. It’s an almost $20 billion industry that has enormous opportunities for growth. It is still a highly specialized industry that not any landscaping entrepreneur can do without first approaching existing experts like tree service franchise consultants or franchisors. But once that barrier is crossed with basic training from a certified arborist working for the franchise, you become a leading tree service industry player in your local market. 

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