Joshua Tree
Joshua Tree Experts offers tree maintenance, plant health care, lawn care, and pest control services through franchised locations. Known for comprehensive outdoor care solutions, this franchise operates in the landscaping and environmental services industry.
Joshua Tree franchise FAQ
How much does it cost to open one — the total initial investment?
The total initial investment necessary to begin operation of the franchised business under a franchise agreement within a single territory is $438,325 to $618,495. This includes $59,500 that must be paid to the franchisor or its affiliates. [p.1]
What is the initial franchise fee?
The initial franchise fee is $59,500 for a single territory with a population of up to 250,000 people. If additional territories are added, the fee may increase based on the number of extra individuals in the first territory at the time of signing [p.11].
What are the ongoing royalty and advertising fees?
The franchisee must pay a continuing weekly non-refundable royalty fee (the 'Royalty Fee'), which is the greater of either a sum equal to the applicable percentage of their weekly Gross Sales or the amount of the then applicable minimum weekly Royalty Fee requirement. Additionally, the franchisee must contribute a weekly sum not exceeding 2% of their weekly Gross Sales to the Brand Development Fund. [p.48, p.17]
How long is the initial franchise agreement, and can I renew it?
The initial franchise agreement does not specify a fixed term length [p.3]. However, you have the option to renew the franchise for one additional 10-year term if you comply with the terms of the agreement and meet the renewal conditions set forth in Article 15 [p.150].
Can I sell or transfer my franchise, and what does that require?
According to the FDD, you can transfer your franchise ownership, but it requires the franchisor's approval. The franchisor may refuse a transfer for any good cause, which is not fully detailed here [p.209]. However, the franchisor cannot prevent them from exercising a right of first refusal to purchase the franchise [p.5].
On what grounds can the franchisor terminate the agreement?
The franchisor can terminate the franchise agreement on any grounds available by law [p.212]. Additionally, the franchisor can terminate if the franchisee fails to comply with lawful provisions of the franchise agreement and does not cure such failure within a reasonable time frame [p.5].
What financial requirements — net worth and liquid capital — do I need to qualify?
This isn't specified in the excerpts. The FDD does not provide specific details on the required net worth or liquid capital for qualification as a franchisee. However, it does mention that if the franchisor's most recent financial statements are unaudited and show a net worth of less than $100,000.00, you may request escrow of initial investment funds until certain obligations are fulfilled [p.209].
Do I get an exclusive or protected territory?
No, you do not receive an exclusive territory [p.35]. You may face competition from other franchisees, outlets owned by the company, or other channels of distribution or competitive brands that the company controls. However, during the term of the Franchise Agreement, provided you comply with your obligations, the company will not open another Joshua Tree Experts Business within your Operating Territory [p.35].
What training and ongoing support does the franchisor provide?
The franchisor provides an initial training program that must be completed within 45 days of the Scheduled or Actual Opening Date. This includes training for the Managing Owner and one manager, with additional participants requiring payment of $500 per person per day [p.120]. Following this, ongoing training is required to conform to franchisor standards [p.120]. Additionally, the franchisor offers in-market sales and client support for one week before and after the opening date [p.120].
How many franchised outlets are there, and how many have closed or been terminated?
This isn't specified in the excerpts.
Does the franchisor share any financial performance or earnings information?
The franchisor may provide actual records of an existing outlet's financial performance if you are purchasing one. However, they do not make any representations about a franchisee's future financial performance or past performance of company-owned or franchised outlets beyond what is included in the Disclosure Document. [p.53]
What am I restricted to selling, and where must I buy supplies?
You are required to exclusively offer and serve the Approved Services and Products as per the franchisor's standards and specifications [p.130(2)]. Additionally, you must purchase and use System Supplies from the franchisor or its designated suppliers [p.130(2)(c) and (e)]. This means that while selling your services or products, they must adhere to the franchisor’s specified standards, and supplies must be sourced exclusively from approved vendors as outlined in the FDD [p.3; p.25].