Short YouTube clip featuring Mike Andes discussing the high cost of franchising due to legal and accounting fees. He and another speaker describe firing a law firm, negotiating lower attorney costs, and saving about $1,700 per signing in Canada. Andes notes franchise fees often don't produce large profits and argues you need ~100 locations to become profitable.
Questions this video answers
$1,700 per signing
Multiple six figures per year
About 100 locations
Follow along as I become the world's first lawn care billionaire. One thing people don't realize is that franchising is super expensive when it comes to legal fees and accounting. Attorneys like to charge you a lot of money, and sometimes you need to negotiate.
And one of the biggest costs we have at Augusta is attorneys. So it's time to negotiate finding a different provider. Sorry, but your law firm is fired.
Okay, so the call with the attorneys went really good, and we are going to save almost $1,700 per signing in Canada. That's super helpful because people think you make a bunch of money on franchise fees. Y. You don't. It's a big headache. We spend multiple six figures just in legal fees and registration every single year. But with scale as yet, multiple locations in each state, it makes it where it's not so bad financially, but that's why it's so difficult. And that's why I've always said you've got to get to 100 locations in your franchise if you're going to make any money. And that's right where we're at right now.
