Monster Tree Service Franchise Review (2024)
Monster Tree Service focuses on all aspects of tree service and maintenance. It provides the highest quality year-round tree removal, pruning, land clearing, stump removal, emergency services, and other tree and Plant Health Care (PHC) services to residential and commercial customers.
Monster Tree Service Franchise Background
In addition to all of the above services, there are a number of secondary services such as resale of wood chips and firewood that a Monster Tree Service franchisee can offer in order to capture additional revenue streams.
Monster Tree Service is necessary in all parts of the U.S.
Management Team
In 2008, Monster Tree Service began as a small tree service company providing arboricultural care to Pennsylvania, Delaware, and New Jersey. The founder, Josh Skolnick, was committed to promoting the growth of healthy trees and giving homeowners unparalleled service that took care of their yards and homes. As a result, when other tree service businesses struggled to find jobs, their company kept working through every season, growing and expanding like the trees we took care of. The company began franchising in 2013
The CEO and President of Monster Tree, Josh Skolnick, has been an entrepreneur since childhood, starting a successful landscaping business while still in high school. He saw the potential in tree care when many of his clients began requesting help with this type of work
The company is lead by a very experienced and supportive management team that helps and trains franchisees so that they have all of the tools to success at their disposal.
They offer strong support with everything from quote creation to hiring personnel and training.
Franchise Tree Care Cleaning and Maintenance Industry Analysis
Franchise Strengths
- Strength and power of a national brand, technology-driven system, professional marketing, volume purchasing power, and comprehensive training and support
- Ability to generate revenue through multiple lucrative revenue streams
- High Profit Margins
- Normal working hours as owner-operate acts as a CEO managing staff
Franchise Weaknesses
- Need to find the right personnel that is already trained to do the tree care services
- Need to adapt the services depending on which part of the country you are located
- Depending on area of the country, can be more seasonal in the winter
Franchise Opportunities
- Ability to grow with an emerging brand concept with a vision to be in very market in the U.S.
- Very large market – tree care represents $17 billion industry and growing
- Offers multiple revenue streams through various services offered
- Extreme weather (i.e. pre-hurricane preparations and post-hurricane clean-up) can be very profitable
Franchise Threats
- Local competitors with a long track record in the area
- Potential for relatively high employee turnover if employees are not compensated properly
How much is a Monster Tree Service?
Monster Tree Service Franchise cost ranges from $349,574 to $484,670 according to the 2019 FDD.
| Cost Types | Amount (in USD) | When Due | To Whom Payment is to Be Made | |
| Low | High | |||
| Franchise Fee | $49,500 | $49,500 | Upon signing FA | Franchisor |
| Training Expenses | 500 | 3,000 | As incurred | Third Party Suppliers |
| Equipment and Vehicles | 245,524 | 314,320 | Before Opening | Suppliers |
| GPS Tracking Systems | 350 | 600 | Before Opening | Suppliers |
| Small Equipment and Tools | 1,000 | 25,000 | Before Opening | Suppliers |
| Insurances | 7,500 | 13,500 | Before Opening | Insurers |
| Initial Advertising/Marketing | 6,000 | 8,000 | Before Opening | Providers |
| Graphics | 4,000 | 8,000 | Before Opening | Suppliers |
| Professional Fees | 2,500 | 4,000 | As incurred | Providers |
| Rent (parking location/office) | 500 | 2,500 | Before Opening | Landlord |
| Office expense | 500 | 1,250 | Before Opening | Suppliers |
| Computer, Phone, and Fax Systems | 1,200 | 3,500 | Before Opening | Suppliers |
| Business Licenses and Permits | 500 | 1,500 | Before Opening | Federal, state and local government agencies |
| Additional Funds | 30,000 | 50,000 | Weekly Payroll, other expenses and purchases | Employees, suppliers, etc. |
| Total | $349,574 | $484,670 |
| Royalty | Ad-Fund |
| 6.5% | 1.0% |
How Much does a Monster Tree Service Franchise make?
| 12 to 23 Months in Operation | 24 to 35 Months in Operation | Greater than 36 Months in Operation | |
| Average | $11,189 | $11,514 | $17,216 |
| Highest Range | $15,344 | $24,293 | $17,216 |
| Lowest Range | $7,035 | $6,284 | $17,216 |
| Median Range | $11,190 | $9,613 | $17,216 |
| 12 to 23 Months in Operation | 24 to 35 Months in Operation | Greater than 36 Months in Operation | |
| Average | $581,836 | $598,733 | $895,234 |
| Highest Range | $797,869 | $1,263,250 | $895,234 |
| Lowest Range | $365,803 | $326,758 | $895,234 |
| Median Range | $581,836 | $499,862 | $895,234 |
| 2016 Reporting Franchisees | Weekly Gross Sales | Weeks in Operation | Number of Territories |
| #1 | $6,027 | 32 | 1 |
| #2 | $4,766 | 35 | 2 |
| #3 | $6,387 | 37 | 1 |
| #4 | $6,215 | 38 | 1 |
| #5 | $9,535 | 43 | 2 |
| 2016 | Tree Care Services | Plant Healthcare Services |
| Average Job Size | $1,362 | $396 |
| Close Ratio | 53.0% | 60.9% |
Total Operating Expenses2,014,516
| Line Item | Total | % of Revenue |
| Revenue | $2,689,017 | 100% |
| Payroll Expenses | 980,582 | 36.5% |
| Advertising | 253,460 | 9.4% |
| Fuel, Material, and Direct Expenses | 186,605 | 6.9% |
| Royalties & Brand Development Fund Fees | 175,595 | 6.5% |
| Insurance and Legal | 161,826 | 6.0% |
| Repairs | 106,243 | 4.0% |
| Office, Rent, and Administrative | 60,300 | 2.2% |
| Bank and Merchant Fees | 40,916 | 1.5% |
| Selling Expenses | 33,187 | 1.2% |
| Licenses and Dues | 15,802 | 0.6% |
| 74.9% | ||
| EBITDA | $674,501 | 25.1% |
FDD Disclaimer:
“This Item sets forth historical gross sales information for franchised-owned outlets and an affiliate owned outlet for the measurement period of January 1, 2018 to December 31, 2018 (the “Measurement Period”), which was provided to us by our franchisees and affiliate owned outlet. The franchisees and affiliate owned outlet included in this Item 19 operate franchised businesses substantially similar to the business being offered in this Disclosure Document.
As of December 31, 2018, there were 24 franchisees operating in 52 territories and one affiliate-owned business (the “Affiliate Owned Outlet”) operating in 4 territories. Franchisees operate either in single territories or multiple territories collectively as one business.
Franchisees who operate multiple territories do not operate, account or report each territory individually and the historical data reflected in this Item 19 is based on the totals for all territories owned in conjunction with their Monster Tree businesses. The franchisees operate territories with populations that range approximately between 250,000 to 1,000,000. The Affiliate Owned Outlet has a total territory population of approximately 1,330,800 and operates 6 separate crews.
Specifically, Part One of this Item sets forth the average weekly and annual revenue of 9 franchisees that were in operation for the entire Measurement Period and are operating within the definition of the Monster Tree system in terms of backlog and crew number (the “Conforming Franchisees”). Excluded from Part I are 6 franchisees that had backlog of work of more than 6 weeks as of December 31, 2018.
Of the Conforming Franchisees, 2 Conforming Franchisees have been operating between 13 months and 35 months as of the April 26, 2019 issuance date of this document, 3 Conforming Franchisees have been operating between 36 months and 47 months as of April 26, 2019, and 4 Conforming Franchisees has been operating for more than 48 months as of April 26, 2019.
Part Two (a) of this Item sets forth the average weekly revenues of the 9 Conforming Franchisees. Part Two (b) sets forth the average weekly revenues of 6 Franchisees that were open the entire measurement period but had work backlogs of greater than 6 weeks as of December 31, 2018 (the “Non-Conforming Franchisees”).
Also, Part Three of this Item sets forth average annual revenue and average operating expense ratios incurred by the Affiliate Owned Outlet and the 9 Conforming Franchisees during the Measurement Period.
Part Four of this Item sets forth the Key Performance Measures (KPI’s), including Total Estimates, Close Ratio, Average Job Size and Backlog as of December 31, 2018 achieved by the Affiliate Owned Outlet and the 9 Conforming Franchisees during the Measurement Period.
We have not audited or independently verified the data submitted by the Conforming Franchisee or Affiliate Owned Outlet. We will provide you with written substantiation for the financial performance representation upon reasonable request.”
