COVID-19 Effect game changer
Due to our new normality, people tend to stay and work from home, this creates the need of bigger, nicer, comfortable home spaces in order to ease this change of environment.
year-over-year sales increase of 22.6 percent
U.S. Census Bureau reports, home centers, hardware stores, garden centers and building materials suppliers realized a year-over-year sales increase of 22.6 percent, leading all retail categories except for online purchases.
Landscaping made Bigget Jump in Insterest
According to research, landscaping property is the home improvement project that made the biggest jump in interest among homeowners from 2019 to 2020. For the entire Consumer Specialists survey, “How COVID-19 Is Reshaping The Home Improvement Market,” visit www.ConsumerSpecialists.com.
Financials
Let’s set some basis
Home Improvement Industry Huge Potential for you!
$506 billion-dollar market
Home services is a $506 billion-dollar market in the United States. Totaling an estimated $23.3B in home emergency spending, $61.9B in home maintenance spending, and $420.8B in home improvement and renovation spending. With an increase in market size of 5.5% on average between 2016 and 2021.
Home improvement spending is the largest category
Home improvement spending is the largest category of spend, taking over 80% of what Americans spend yearly in the home service market. Maintenance is second, coming in at approximately 12% of what we spend on housing.
Landscaping Annual Revenue $50 Billion
The landscaping industry consists of about 93,000 companies in the United States combining for an annual revenue of about $50 billion and employing nearly 900k people.
Total Initial Investment: $215,000 - $315,000 (60% investment is Inventory)
Inventory Initial Investment: $106,000 - $145,000
Initial Franchise Fee: $25,000
Net Worth Requirement: $199,000
Cash Requirement: $150,000
Royalty Fee: 6% of Gross Sales
Marketing Fund Contribution: 1% of Gross Sales.
National CAll Center Service Fee: $100 monthly flat rate.
Term of Agreement: 10 years
Is franchise term renewable?: Yes
Territory
Compare to the standard in the franchise industry, still competing in the highest range of population assigned. Big Metro Areas peripherical towns and cities
- Population: Up to 500.000
- Size: Up to 4.000 square miles
- Minimum Purchases Required: $75,000 anually
Territory
Includes parts of the large metropolitan areas, in some cases having major cities adjacent to the Greater ones in each state
- Population: Up to 1.000.000
- Size: Up to 4.000 square miles
- Minimum Purchases Required: $145,000 anually
Territory
Usually are parts of big Macropolitan areas or entire Micropolitan cities that match the criteria for the geographycal attention
- Population: Up to 2,000,000
- Size: Up to 4,000 Square Miles
- Minimum Purchases Required: $190,000
Territory
Mainly parts of Macropolitan areas, sections of the most important cities in the country. Highest demand and development.
- Population: Up to 3,500,000
- Size: Up to 4,000 Square Miles
- Minimum Purchases Required: $290,000