If the previous year’s figures were to be an indication, it seems that buying a lawn care franchise for sale would be a viable prospect for 2019.
According to a national survey, U.S. households’ spending on lawn and garden retail purchases reached $503 on average in 2018, up by almost $100 from 2017. Garden Research conducted the nationwide poll, which also showed that 77% of homes have tended gardens and more of them are at a younger age. Their collective spending serves as another reason to consider a franchise business to cater to this growing market, with nearly $48 billion spent on landscaping tools and equipment among other garden necessities.
Diverse Owners Of Residential Landscapes
Before thinking about buying a franchise, it’s important to know the diverse demographic of your prospective clients. Homeowners who are more than 35 years old still accounted for the biggest share of gardeners at 35%, while younger people represented 29%. It may be smaller, but that’s already a record high for this age group.
At the same time, more men between 18 and 34 years old have become interested in landscaping and gardening. In 2017, 27% of males from this group have engaged in lawn and gardening tasks compared to 23 in 2016. All these numbers should also matter to an interested investor in commercial lawn care franchise for sale. Households may have spent billions in retail purchases last year, so it’s highly likely that landlords of non-residential properties are not far behind or are even bigger spenders.
As soon as you determine your chosen niche in landscaping, experts advise to prepare your financing strategy ahead of time. This lets you choose the most favorable terms for your loan application, especially if you intend to borrow capital from a bank.
It may seem easy, but this is a common mistake among aspiring franchisees particularly those who are new to the industry. You should expect the process of procuring a small business loan to be a tedious process. Don’t rely solely on loans for your capital, and carefully estimate your overhead expenses to avoid spending more than you expected.
Other Business Tips
Some legalities during the process of buying a franchise could leave you scratching your head. For instance, the Franchise Disclosure Document (FDD) typically has terms that may not be easy to understand for those without legal advice. In fact, a study suggested that people will find it hard to understand an FDD unless they have an average more than 20 years of education.
Legal counsel helps you to avoid any complications in the future because of not fully understanding the contract’s terms. These issues may include expecting too much support from your franchisor whether it involves marketing, logistics or training.
It’s likely that Americans, whether households or companies, will continue to spend on lawn and garden expenses. A growing sense of sustainability partly encourages them to do so. This is particularly evident for the commercial real estate sector, where more stakeholders and clients want spaces with sustainable landscaping.