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With a turbulent future looming over the lawn care industry, the owners of a family owned Weed Man franchise had asked for recommendations as to the best options regarding the future of their business. The owner had put his life into the business over 30 years and had built it to a level of great success and prosperity. With an offer to sell the franchise on the table, the idea of retirement was hard to ignore. The owner’s three children had grown up working for the business, with two actively employed. The youngest had always planned to eventually take over for his father and to continue the success of the business.
As part of a consultative team, Sancton Consulting Services analyzed the options as well as short term and long term effects of what these decisions may entail. The business was analyzed both in a micro and macro scope, and several methods of analysis were utilized such as Porter’s 5 Forces, SWOT analysis, Discounted Cash Flow Projections as well as interviews with stakeholders.
The major obstacles facing the industry included an upcoming Provincial Pesticide Ban that would force many Lawn Care businesses to re-evaluate their services and operations as many chemicals will no longer be available for use. From a marketing frame, a National Do Not Call List would limit the amount of sales that can be brought in through telemarketing, a core sales method for Weed Man.
Through evaluating the franchise’s business model, it was found that the market conditions were not favourable for success over a five year horizon.
Based on research and analysis, it was very clear that given the opportunity to sell the business at this time, it would be wise to fully investigate this option and to in fact make the sale, given a fair offer is made. As a result the business was sold shortly after the release of the report.