PDA

View Full Version : Buying Into A Lawnmowing Franchise



administrator
21-11-2007, 05:11 PM
Source www.indmowing.com.au

Ok buy into a franchise, spend 25 thousand. For your money you may get 65 customers (if you're lucky), equipment
After 3 to 4 months of being with them, you may have accumulated another 30 customers, and that may be all your able to cope with, TURNING OVER a possible $1,000 a week. It looks great in theory, but of course, you would be paying royalties, fees, etc. This may be costing you 4 to 5 hundred dollars a month and what are you paying that for? You already have 100 customers. So already, within 6 months, your business is established, the contract you signed may put you in debt $6,000 per year for 4 to 5 years. Now it doesn't look so good, does it. You are doing the hard work and someone else is reaping the profits.

Now that is a good scenario, what happens if after spending thousands of dollars on this franchise, you decide that lawn mowing isn't for you? OUCH... no explanation needed there! Oh and if you are looking at buying into a Franchise make sure you ask how much it costs you to get out?

IMMEDIATE INCOME? Every day we have people come to us saying they want to purchase a round or a franchise rather then start their own as they want immediate income. Where is the income if you are paying off a debt? The trick is to start off with as little outlay as possible, and really start making some money from the beginning!

chaplain
19-10-2008, 10:08 AM
Found this on the net .

http://www.parliament.sa.gov.au/NR/rdonlyres/2F9A36D9-44BD-4D51-B7E3-15E33E768AE1/10892/AnonymousSubmissionReVIP16Jan.pdf

Bgs
19-10-2008, 10:15 AM
Poor guy Id hate to be in that situation :(

haireyscarie
19-10-2008, 10:17 AM
what a pack of dogs
go indy :who-knows

Bluey
19-10-2008, 04:26 PM
Poor guy Id hate to be in that situation :(


Me too. Just don't see the sense in paying someone else for doing nothing but having a name and reputation. And by the sounds of this neither is worth having. Poor bugger. I guess his only hope to get out is bankruptcy.

Indy for me.

Sandgroper
19-10-2008, 10:16 PM
Its good to see someone speak out but 99% of folks don't,,i guess he will end up walking away like a Jims guy in my town,,he did better working on a farm for wages.

Mind you they were quick to find someone to replace him ,i bet they didnt tell the new guy that the last guy went bust.

On the other side of the coin some do well,,i guess it depends on the area as well,,my area would be worth half as much as a suburb down the road,,i bet they don't say you have a bad area we will knock 50% off from the normal price and fees.

administrator
20-10-2008, 11:36 AM
The worst part is now the FINANCIAL sector is talking about a recession .

Franchise moguls will be rubbing their hands together .

WATCH THE ADVERTISING COME FORWARD NOW FROM THE FRANCHISE GROUPS

People will think they can buy themselves a job especially the 50s plus group and as we all know their just buying a debt .

Sandgroper
20-10-2008, 01:44 PM
Some Donkey voted Jims as the best franchise under $50,000,,thats sucked a lot in i am sure, it does not say much for the others thats for sure. :laughing:

administrator
20-10-2008, 02:08 PM
The problem with that is that any one in a franchise can never say anything bad about that franchise because if word got around then the franchisee will lose heaps of money .

They have to build up the franchise EVEN IF THEY HATE IT you will very really here any one that is in a franchise say a harsh word FOR GOOD REASON LOL .

No wonder the franchise says why dont you ask our franchisees how good we are lol

They dont say why dont you contact some of our former owners and ask them what a great time they had lol .

:i dunno:

mowjoman
20-10-2008, 07:13 PM
:p Tell ya what I'm so glad I found this site before I did something silly like buying a franchise...When I first started thinking I'd like to be a lawnie hims definately crossed my mind...
I feel sorry for that poor bugger who wrote that letter. They definately got him by the short curly ones...
I would like to see some sort of legilation to protect our unwitting brothers and sisters.

lifestyle
20-10-2008, 09:15 PM
Some Donkey voted Jims as the best franchise under $50,000,,thats sucked a lot in i am sure, it does not say much for the others thats for sure. :laughing:

I'd agree with that, Jims probably is the best franchise under $50,000.

That doesn't mean Franchises are a good option or Jims either... It just means it happens to be the best franchise under $50,000

Sandgroper
21-10-2008, 05:42 PM
I don't know much about V.I.P they were run out of town years ago but whats this 20 year contract all about ? I never knew anybody was under contract,,,its far worse than i first thought :i dunno:

holdenhead
14-12-2008, 01:42 AM
When I first started mowing lawns part time....Yes for beer money, about 12 years ago, I had just finished my apprenticeship as a chef. I wanted to try something different and sttarted mowing a few lawns. I kept my eye on the paper for mowing jobs and one came up with a jim's. I wanted to see what they did and how things were done. I never saw any advantage of being with a franchise. You are never really free to run your own business!!

administrator
14-12-2008, 07:07 AM
Found this on the net .

http://www.parliament.sa.gov.au/NR/rdonlyres/2F9A36D9-44BD-4D51-B7E3-15E33E768AE1/10892/AnonymousSubmissionReVIP16Jan.pdf


It seems somebody didnt like the guy telling the truth it has been erased from the net.

We have posted alot of links of the net regarding the ugly side of franchises in the lawnmowing gardening game and they soon vanish seems these guys also have good lawyers lol .

BJS Services
12-03-2009, 06:07 PM
Hi Dean and all,
We Have just taken on our third Jim's mowing job in 2 months. All three were dumped for overcharging for example $40 for spreading a little fertiliser around a house block we charge $10 the 40Kg bag only costs $30 and that will do a lot of house blocks.
$30 for weed control 1000 litres cost $100 we spray a small amount around a house block for $5.
One job was a large house Block Jimbo was mowing it with a clapped out John deere it took forever and was priced to suit. The lady asked us what we would charge, it was exactly 1/2 of jimbos price and included wippersniping and weed spray.
We use a Commercial 450 Toro Z master.( it cost us $15,000 the cost of a Franchise). Wow will it cut the grass 18 Km per hour through almost anything.
The last Job jimbo did it once and never came back again. The house owner came up to us on the street and asked us to do the job. (good signage)
From observation there are 8 jimbo's in our area they have to load the prices to cover the $5000 they (I am told) have to remit every year to the man. Also the $7.50 for every lead must add up after a while. No one will say how they are doing but it must be a hard road.
James is also in on the act now in our area, he has a beautiful new trailer and a lovely push mower, his quote for a medium house block was $120 he will not last very long at that rate. $40 to $50 would be nearer the price.

Listen to the man keep clear of Franchising at all costs. Have a go by all means and if you do not make it at least you do not have to fight a team of very good lawyers, just hang in there and seek advice from others in the business.
Bob Judy and Gary Band J mowing. :i dunno:

MikeS
13-03-2009, 09:37 PM
Most of my clients are ex Jim's lately, some tell of 3 weeks to get even a quote, others of appointments made but no one turns up and calls not answered for days. It seems around here they have simply too much work to keep up with.

administrator
13-03-2009, 11:09 PM
The franchisees are leaving the franchise groups more quickly than they can replace them .

chaplain
14-03-2009, 08:15 AM
Got to protect the brand name Lockie .

Great to hear from you anyway .

Bgs
14-03-2009, 08:36 AM
Good on ya lockie , great to hear a perspective from the dark side lol :wave-hi:

Lockie
14-03-2009, 09:01 AM
G'day all, just thought i'd bring the other side of the thread to the table......I'm a Jims mowing franchise owner.....i know boo hiss boo. Have been reading this forum and others for awhile (always looking for new ideas, tips or to see how the industry is going from all angles) Really enjoy this site, heaps of good ideas from a group of really switched operators. I'm not here to start a slanging match or trying to sell the franchise system, just got tired of some of the porkies being spread about jims, yes there are dud jimbos and unhappy ones out there, but thats same in any group franchise, company or indy. 8 plus years ago i bought my franchise, for me it was the best thing i ever did, i went from working 7 days a week 10 to16 hrs a day (ran 3 bakeries) and no social life to 6 to 8hrs 5 days a week. I face all the same day to day dramas as any contracter,whens it going to rain consistently(here in Melb), economic down turn (recession) to equipment up keep and all the other little and big things that go with running a bizz.
Why did i go with Jims over indy?
Brand recognition was clincher for me it was just that simple.
I hav'nt called for work since Sept 06 and have sold over 150 clients back to jims.
Any way probably bored you all enough by now, just wanted to put my 2 cents worth out there.
Cheers
Lockie

Siddo
14-03-2009, 09:42 AM
theres two sides to every story. ;dealers;

Sandgroper
21-03-2009, 03:29 PM
Well done Lockie it seemed to go well for you.

Mind you a good worker like yourself would have done just as well in business as an independant i believe and have more control over your business.

But as long as your making the dosh and you are happy thats the main thing .

geejay
22-03-2009, 10:30 AM
G'day all, just thought i'd bring the other side of the thread to the table......I'm a Jims mowing franchise owner.....i know boo hiss boo. Have been reading this forum and others for awhile (always looking for new ideas, tips or to see how the industry is going from all angles) Really enjoy this site, heaps of good ideas from a group of really switched operators. I'm not here to start a slanging match or trying to sell the franchise system, just got tired of some of the porkies being spread about jims, yes there are dud jimbos and unhappy ones out there, but thats same in any group franchise, company or indy. 8 plus years ago i bought my franchise, for me it was the best thing i ever did, i went from working 7 days a week 10 to16 hrs a day (ran 3 bakeries) and no social life to 6 to 8hrs 5 days a week. I face all the same day to day dramas as any contracter,whens it going to rain consistently(here in Melb), economic down turn (recession) to equipment up keep and all the other little and big things that go with running a bizz.
Why did i go with Jims over indy?
Brand recognition was clincher for me it was just that simple.
I hav'nt called for work since Sept 06 and have sold over 150 clients back to jims.
Any way probably bored you all enough by now, just wanted to put my 2 cents worth out there.
Cheers
Lockie

i looked at jims inside out,my best friend is a jims man,he helped me set up as a indy,working by my side for weeks during his break,AAA man.only one problem with jims,and thats jim himself,the man.my friend hes had many occasions of throwing in the towel with jim the man,but hung in there,which is good for him,he is a jims man.he did try and convince me,even bought me jims book,but iam a indy man through and through,my own man,master of how i see my universe.and we're matties(mates) still ;frosty; ;frosty; ;frosty;

happymowin
03-06-2011, 11:22 PM
IMHO a lawnmowing franchise (or any of our businesses) is worth 1 mows worth of money ( eg you have 50 clients x $50 a mow, your business is worth $2500)

so, $30,000 worth of clients - thats a damn sight more than 65.

i can guarantee you wont be able to sell your franchise to someone else - else why dont you sell it each year at the end of summer, put feet up with 30 k over winter, then do it all again .

I know a bit about franchises - I went into selling franchises for something a long time ago ( and they WERE 30 k a pop) - it is fraught with the danger of getting your ass sued off by those you sell it to.

you have to have deep pockets (for lawyers) just to sell the franchise, then ya gotta make it work for the person you sold it to.

and imho anyone who "buys" customers or even leads just cant work out how to put an ad in the local paper.

franchise "income guarantees" are a rip off, they are just using the 30 k you paid them to pay a bit back to you. "if you do the right things, and QUALIFY"

Put your 30 k in the bank, and you can relax for 2 years while you build your business yourself. pay yourself the income guarantee and the advertising out of your 30 k.

and 130 a week, or whatever you gotta pay to a franchise, spend it on YOURSELF advertising.

$ 50 a week for a local ad, and i got all the work me and the 2 offsiders i dont have can handle. ( i work alone, but get 3 times the leads i can handle in summer) - i use $20 a week petrol, service only 3 suburbs - usually all of my customers on any day are within 10 minutes of my home, and 2 to 3 minutes from each other - its not hard, just dont accept work outside of your required area.

whatcha want to buy a lawnmowing franchise for i got no clue.

(some comments copied from another thread - didnt make sense to link the whole deal)

glassngrass
04-06-2011, 08:28 AM
I got mixed feeling on this.
Truth is, there are many people "living the dream" within a franchise, but these are the exception.
My experience is neither all good, nor all bad.

Would I encourage you to join a franchise? NO
Would I discourage you from joining a franchise?
Not necessarily - but I would probably lean toward this side.
But by all means have a look and decide for yourself.
If you feel buying a franchise is buying a job, then you will likely fail.
If you lack the confidence to get out there and market yourself then you are not suited to be a business owner either.

Neither model guarantees success, but one model does not require a big outlay, ongoing overheads and contractual obligations.