About Spring-Green Franchise
Spring-Green is a lawn care and landscape services franchise that has been in the franchise industry since 1977, giving it nearly five decades of experience in building successful lawn care businesses.
The brand, backed by Spring-Green Enterprises, Inc, provides residential and commercial lawn fertilization, weed control, tree and shrub care, and pest management services.
The franchise fee is $50,000 for a territory of up to 60,000 single family dwelling units.
Spring-Green Franchise Cost & Fees
| Fee Type | Amount | Notes |
|---|---|---|
| Initial Franchise Fee | $50,000 | One-time payment upon signing |
| Royalty Fee | Sliding scale of 10% to 8% of Gross Sales of gross sales | Ongoing; paid monthly |
| Marketing/Ad Fund | 2% of Gross Sales of the Franchised Business | National brand fund |
| Total Investment Range | $116,993 – $125,999 | Includes build-out, inventory, working capital |
The investment range of $117K–$126K reflects variability in build-out costs, store size, lease terms, and market. The combined royalty (Sliding scale of 10% to 8% of Gross Sales) and marketing fee (2% of Gross Sales of the Franchised Business) are ongoing costs paid as a percentage of gross sales.
Investment Breakdown (Item 7)
| Item | Low | High |
|---|---|---|
| Initial Franchise Fee(2) | $50,000 | $50,000 |
| Production Vehicles, Equipment and Fixtures(3) | $5,492 | $5,492 |
| Technology Equipment and Software(4) | $3,600 | $3,600 |
| Opening Inventory and Supplies | $2,530 | $2,530 |
| Initial Marketing Campaign Fee(5) | $30,000 | $30,000 |
| Initial Property Data Fee(6) | $16,500 | $16,500 |
| Training Expenses(7) | $0 | $1,535 |
| 3 Months’ Rent(8) | N/A | N/A |
| Miscellaneous Opening Costs (incl. licenses, insurance, and other prepaid expenses)(9) | $1,450 | $6,200 |
| Additional Funds - 3 months(10) | $7,421 | $10,142 |
Additional Fees (Item 6)
| Fee Type | Amount |
|---|---|
| Transfer Fee | 2.5% of Gross Sales of the Franchised Business within the 12 months immediately preceding the effective date, but no less than $7,500 and no more than $17,500 |
| Renewal Fee | No initial or renewal franchise fee, but franchisor has the right to charge for services and expenses incurred in connection with renewal. |
| Technology Fee | Currently $125 per month |
| Audit Fee | Cost of inspection or audit |
| Indemnification | Will vary under circumstances |
| Interest | Greater of 1.5% per month or 3% over Bank of America Prime Rate, but not above the highest legal rate permitted by applicable law |
| Lease of Equipment | $497 to $637 per month |
| Management Fee | $300 per day plus costs and expenses |
| Supplier Testing Fee | An amount not to exceed the cost of inspection and testing |
| Education Fee | Currently $205 per year |
| Ongoing / Refresher Training | Not currently charged. If implemented, our then-current fee (currently estimated at $250 per day). |
| Property Data Fee | Our (or our affiliate’s) then-current fee (currently $0.55 per SFDU) |
| Accounting Service Fee | Estimated $300 per month (if required) |
| Insufficient Funds | $100 |
| Failure to Report Gross Sales Fee | Currently $25 |
| National or Regional Meeting Fee | Currently, $625 plus expenses for the National Meeting. Subject to change. |
| Customer Survey Fee | Will vary under the circumstances. Approximately $1.55 per customer. |
| Services to Customers | Will vary under the circumstances. |
| Taxes | Will vary |
| Various Marketing Materials | Actual costs incurred. |
Training Program (Item 11)
| Detail | Information |
|---|---|
| Total Duration | 55 hours classroom, 78 hours on-the-job (Total 133 hours) |
| Classroom Training | 55 |
| On-the-Job Training | 78 |
| Training Location | Our headquarters, a local venue, or virtually |
| Additional Training | Franchisor may require previously trained individuals and other employees to attend ongoing and refresher training programs (in-person or remotely) at franchisee's expense. May also require attendance at national and regional meetings, with fees and travel/living costs borne by franchisee. May require hiring a certified public accountant or attending accounting/bookkeeping training if records are not up to standard. |
Territory Rights (Item 12)
| Detail | Information |
|---|---|
| Territory Type | Exclusive for Residential Accounts; Non-exclusive for Commercial Accounts |
| Exclusive Territory | Yes |
| Territory Size | Up to 60,000 SFDUs (Single Family Dwelling Units) |
| Description | Designated by reference to census tracts as established by the U.S. Census Bureau. |
Renewal, Termination & Transfer (Item 17)
| Detail | Information |
|---|---|
| Initial Term | 10 years |
| Renewal Term | One renewal term of 10 years |
| Renewal Fee | No initial or renewal franchise fee, but franchisor has the right to charge for services and expenses incurred in connection with renewal. |
| Renewal Conditions | Substantial compliance; written notice 18-12 months before expiration; allow inspection of Franchised Business; sign then-current form of Franchise Agreement and ancillary agreements; sign general release; make necessary modifications; attend renewal/refresher training. |
| Transfer Fee | 2.5% of Gross Sales of the Franchised Business within the 12 months immediately preceding the effective date, but no less than $7,500 and no more than $17,500 |
| Transfer Conditions | Franchisee not in default; assignee qualifies and provides required documents; assignee assumes all obligations; transfer marketing fee paid; final advertising fund/royalty fees paid; business meets current standards; transfer customer information; execute release; training completed; monetary obligations subordinated; assignee's owners sign guaranty; transferee signs then-current form of agreement; transfer/destroy materials related to Marks/Operating Manual; transferee's proof of insurance; transferee pays software transfer/training fee; transferee is of good moral character. |
| Termination for Cause | Franchisor can terminate for material misrepresentation, abandonment, unauthorized transfers, unauthorized disclosure of confidential information, failure to pay obligations to third-party vendors, insolvency, understatement of royalty fees by more than 5% (twice), failure to provide financial statements/reports (twice), conviction of felony, conduct injurious to goodwill, failure to commence business, failure to complete training, failure to maintain insurance, default under lease/other agreement with franchisor, failure to pay amounts due to franchisor/affiliates, failure to provide service in accordance with standards, violation of health/safety/sanitation law, or failure to cure any other provision within 30 days. |
| Non-Compete Period | During term of franchise; 2 years after termination or expiration |
| Non-Compete Details | During term: no direct/indirect interest in competitive business, no services for competitive business, no diversion of business/customers, no activities injuring goodwill. Post-term: no involvement for 2 years in competitive business, no diversion/solicitation of current/former customers for 2 years, no purchase of approved products/equipment/services from approved suppliers for 2 years. |
Operations & Supply (Items 8 & 15)
| Detail | Information |
|---|---|
| Owner-Operator Required | No |
| Participation Details | While the franchisor recommends personal participation, it is not obligated by the terms of the Franchise Agreement. The business must be under the direct, full-time supervision of the franchisee (or Managing Owner if an entity) or a trained and competent operations manager. Managing Owners participating in the Flex Start Program may devote less than full-time efforts during the initial start-up period. Owners must personally guarantee obligations, and spouses of owners must consent to the Guaranty and Assumption of Obligations. |
| Required Suppliers | Franchisees must purchase or lease certain categories of goods, services, supplies, equipment, vehicles, and inventory from approved suppliers, which may be the franchisor or its affiliates. Currently, the franchisor or its affiliates are the only approved supplier for the initial supply package, certain required equipment, marketing materials, forms, supplies, reports, and initial property data services. |
| Supply Restrictions | Franchisees must operate in compliance with mandatory specifications, standards, and operating procedures for all products, equipment, supplies, and services. They must use only products and services approved by the franchisor as meeting quality, performance, and other relevant characteristics. Prior written approval is required for any unapproved product, service, equipment, vehicle, or supplier, which involves submitting technical data and samples for evaluation. The franchisor reserves the right to charge fees for testing and evaluating proposed items and to impose limits on approved items. |
| Franchisor Revenue from Suppliers | In fiscal year 2022, revenue from sale/lease of inventory, equipment, services, and supplies to franchisees was $509,074, which was 6.7% of total revenue. The franchisor receives payments of up to 1.5% from a supplier on purchases of certain fertilizers and control products by affiliate-owned and franchised businesses, totaling $70,470 in 2022. These amounts are contributed to the Advertising Fund. |
Financing (Item 10)
| Detail | Information |
|---|---|
| Financing Available | Yes |
| Description | Spring-Green offers direct financing for a portion of the initial franchise fee (Spring-Green Franchise Fee Financing), the initial marketing campaign fee (Green Associate Marketing Financing), and the initial property data fee (Initial Property Data Fee Financing). These are typically 5-year promissory notes with interest accruing at 5% over the Bank of America Prime Rate (e.g., 12.75% as of March 21, 2023). For Green Associate Marketing Financing, 50% of the principal is paid in equal monthly installments over the first 2 years with interest accruing but unpaid; the remaining balance is forgiven if aggregate Gross Sales exceed $175,000 and compliance is maintained, otherwise, the remaining 50% plus interest is paid over the next 3 years. The franchisor also offers a lease program (Spring-Green Lease) for certain equipment, requiring a 20% down payment and monthly installments over a typical 5-year term, with interest at 5% over the Prime Rate. Additionally, Spring-Green has a financing program with Advantage Leasing Corp. (ALC Financing) for $25,000 to $100,000, repaid over 36 to 60 months, and may guarantee franchisee obligations to ALC. |
Spring-Green Franchise Earnings — Item 19
Past financial performance does not guarantee future results. Individual results will vary.
Spring-Green Litigation & Risk Flags
Litigation and bankruptcy data is sourced from Items 3 and 4 of the FDD. Always verify current status directly from the most recent FDD.
Spring-Green System Growth
Spring-Green currently operates 128 franchised locations and 26 company-owned units. Unit count data is sourced from Item 20 of the FDD.
Unit History (Item 20)
| Year | Opened | Closed | Total |
|---|---|---|---|
| 2020 | 1 | 1 | 152 |
| 2021 | 1 | 1 | 152 |
| 2022 | 2 | 0 | 154 |
Transfers: 3 | Closures: 0
State Registrations
Registered in 14 states: California, Hawaii, Illinois, Indiana, Maryland, Michigan, Minnesota, New York, North Dakota, Rhode Island, South Dakota, Virginia, Washington, Wisconsin
Franchisor Financials (Item 21)
Audited by DHJJ for year ending December 31.
Spring-Green Franchise — FAQ
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