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Waterloo Turf
How much does Waterloo Turf cost?
Initial Investment Range
$106,300 to $233,000
Franchise Fee
$70,500 to $77,500
We offer franchises for the right to operate a comprehensive artificial turf business that offers and sells approved artificial turf and surface products and related installation and landscaping services to commercial and residential customers.
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Waterloo Turf April 24, 2025 FDD Risk Analysis
Free FDD Library AI Analysis Date: August 21, 2025
DISCLAIMER: Not Legal Advice - For Informational Purposes Only. Consult With Qualified Franchise Professionals.
Franchisor Stability Risks
Start HereDisclosure of Franchisor's Financial Instability
High Risk
Explanation
The 2024 audited financial statements for Waterloo Turf Franchising Co, LLC (Waterloo Turf) show a net loss of $62,655 and a negative members' equity of ($62,555). Note 5 to the financials explicitly raises a 'going concern' issue, indicating its ability to continue operations is dependent on raising more funds. This suggests a significant risk that Waterloo Turf may lack the financial resources to support you and the franchise system adequately.
Potential Mitigations
- Your accountant must thoroughly analyze the financial statements, including the 'going concern' note and the reliance on related-party loans.
- A business advisor can help you assess the operational risks stemming from a franchisor with limited financial stability.
- Discuss the franchisor's capitalization and future funding plans in detail with your legal and financial advisors.
High Franchisee Turnover
Low Risk
Explanation
This specific risk was not identified in the FDD Package. As a new franchisor that only began offering franchises in December 2024, there is no history of franchisee turnover. Tracking this data in future FDDs is critical because high turnover can be a primary indicator of systemic problems, such as franchisee unprofitability or poor franchisor support. This makes your due diligence with the first generation of franchisees especially important.
Potential Mitigations
- Your business advisor should help you establish a plan to communicate with other early-adopter franchisees as the system grows.
- Ask your attorney how to monitor future FDDs for any signs of increasing turnover in the system.
- An accountant can help you model different scenarios to understand the financial pressure points that could lead to franchisee failure.
Rapid System Growth
Low Risk
Explanation
This risk was not identified in the FDD Package. Because franchising only began in December 2024, there is no history of rapid growth. However, Item 20 Table 5 projects 19 new franchised outlets for 2025. While only a projection, such growth could strain a new franchisor's ability to provide adequate support. Evaluating a franchisor's capacity to scale its support systems alongside its franchise sales is a key piece of due diligence.
Potential Mitigations
- Your business advisor should help you question the franchisor about their specific plans to scale support staff and systems to match projected growth.
- An accountant can review the franchisor's financials to assess if they have the capital to fund necessary support infrastructure.
- Your attorney can advise on contractual provisions related to support levels.
New/Unproven Franchise System
High Risk
Explanation
This risk is explicitly highlighted in the 'Special Risks' section. Waterloo Turf was formed in August 2024 and began franchising in December 2024, with zero franchised outlets operating as of the end of 2024. Investing in a new system carries higher risk because the business model, brand recognition, and support systems are unproven in a franchise context. Your success is tied to the franchisor's ability to successfully build the system from the ground up.
Potential Mitigations
- A business advisor can help you conduct extensive due diligence on the viability of the business model and the experience of the management team.
- Your accountant should carefully scrutinize the financial projections, given the lack of historical franchisee performance data.
- Consider asking your attorney to negotiate more favorable terms to compensate for the increased risk of joining a new system.
Possible Fad Business
Medium Risk
Explanation
The artificial turf industry is an established market driven by home improvement and water conservation trends. While not a temporary fad, the industry is subject to changing consumer tastes, new product innovations, and potential environmental concerns or regulations. A prospective franchisee should consider the long-term market sustainability and the franchisor's ability to adapt to industry changes, as your contractual obligations will continue regardless of market shifts.
Potential Mitigations
- A business advisor can help you independently research the long-term prospects and potential challenges of the artificial turf industry in your specific market.
- Inquire with the franchisor about their plans for research and development to stay current with new products and installation techniques.
- Discuss with your financial advisor the potential impact of market fluctuations on your business plan and financial projections.
Inexperienced Management
Medium Risk
Explanation
The management team has a mix of relevant experience. The CFO has prior franchise CEO experience, and the CEO has some franchise operations experience. The founder has direct industry experience but not in managing a franchise system. While not complete novices, the team's collective experience in building and managing a franchise system from its inception in this specific industry is limited. This could impact the quality of strategic guidance and support systems as the brand grows.
Potential Mitigations
- Your business advisor should help you thoroughly vet the specific franchising and industry experience of each key management member.
- Discuss with the franchisor how their combined experience prepares them to build and support a new franchise system effectively.
- Ask your attorney to clarify the franchisor's specific, contractually-guaranteed support obligations.
Private Equity Ownership
Low Risk
Explanation
This risk was not identified in the FDD Package. Item 1 discloses the ownership structure and does not indicate ownership by a private equity firm. This is generally a positive factor, as management's interests may be more aligned with the long-term health of the franchise system rather than a short-term exit strategy often associated with private equity ownership. However, you should be aware that the franchise system could be sold to a PE firm in the future.
Potential Mitigations
- Your attorney should review the assignment clause in the Franchise Agreement to understand your rights if the system is sold.
- Consider discussing the long-term vision for the company with the franchisor's current management.
- A business advisor can help you research the background of the current owners and their history with other businesses.
Non-Disclosure of Parent Company
High Risk
Explanation
Item 1 discloses two parent companies: Waterloo Turf Franchising, Inc. and Trivium Franchise Holdings, LLC. However, the franchisor entity, Waterloo Turf Franchising Co, LLC, is a newly formed, thinly capitalized entity with negative equity as shown in Item 21. While the FDD does not provide financials for the parent companies, their financial strength and commitment are critical to the viability of the franchisor, creating risk if they are unable or unwilling to provide continued funding.
Potential Mitigations
- Your accountant must analyze the franchisor's reliance on its parent companies for funding, as detailed in the financial statement notes.
- Ask your attorney to inquire about the financial health of the parent entities and the nature of their commitment to the franchise.
- A business advisor can help you research the history and other business holdings of the parent companies.
Predecessor History Issues
Low Risk
Explanation
This risk was not identified in the FDD Package. Item 1 discloses a predecessor and affiliate, Waterloo Turf, LLC (WT), and clearly explains its operational history. This level of disclosure appears to be transparent, providing a clear lineage for the business concept and management's experience. This is a positive factor, as it allows for a more complete assessment of the business's background before it began franchising.
Potential Mitigations
- Your business advisor should still review the predecessor's history for any insights into the operational model.
- Consider asking the franchisor how the predecessor's experience has shaped the current franchise system.
- It is good practice for your attorney to confirm that disclosures in other FDD items, like litigation, also cover the predecessor entity.
Pattern of Litigation
Low Risk
Explanation
This risk was not identified in the FDD Package. Item 3 states that no litigation is required to be disclosed. This is a positive indicator, suggesting the franchisor and its management have not been involved in legal disputes concerning fraud, misrepresentation, or franchise law violations. However, as a new franchisor, there has been limited time for such disputes to arise.
Potential Mitigations
- Your attorney should confirm that the scope of the Item 3 disclosure is appropriate and includes predecessors and management as required.
- A business advisor can help you conduct independent online searches for any informal complaints or disputes not rising to the level of disclosure.
- Continue to monitor this item in future FDDs as the system matures.
Disclosure & Representation Risks
Example Risk: Franchisee Financial Obligations
Blue Risk
Explanation
This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.
Potential Mitigations
- Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
- Conduct regular risk assessments
- Implement monitoring and reporting systems
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Financial & Fee Risks
Example Risk: Franchisee Financial Obligations
Blue Risk
Explanation
This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.
Potential Mitigations
- Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
- Conduct regular risk assessments
- Implement monitoring and reporting systems
Unlock Full Risk Analysis
Purchase the complete risk review to see all 102 risks across all 10 categories.
Legal & Contract Risks
Example Risk: Franchisee Financial Obligations
Blue Risk
Explanation
This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.
Potential Mitigations
- Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
- Conduct regular risk assessments
- Implement monitoring and reporting systems
Unlock Full Risk Analysis
Purchase the complete risk review to see all 102 risks across all 10 categories.
Territory & Competition Risks
Example Risk: Franchisee Financial Obligations
Blue Risk
Explanation
This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.
Potential Mitigations
- Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
- Conduct regular risk assessments
- Implement monitoring and reporting systems
Unlock Full Risk Analysis
Purchase the complete risk review to see all 102 risks across all 10 categories.
Regulatory & Compliance Risks
Example Risk: Franchisee Financial Obligations
Blue Risk
Explanation
This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.
Potential Mitigations
- Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
- Conduct regular risk assessments
- Implement monitoring and reporting systems
Unlock Full Risk Analysis
Purchase the complete risk review to see all 102 risks across all 10 categories.
Franchisor Support Risks
Example Risk: Franchisee Financial Obligations
Blue Risk
Explanation
This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.
Potential Mitigations
- Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
- Conduct regular risk assessments
- Implement monitoring and reporting systems
Unlock Full Risk Analysis
Purchase the complete risk review to see all 102 risks across all 10 categories.
Operational Control Risks
Example Risk: Franchisee Financial Obligations
Blue Risk
Explanation
This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.
Potential Mitigations
- Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
- Conduct regular risk assessments
- Implement monitoring and reporting systems
Unlock Full Risk Analysis
Purchase the complete risk review to see all 102 risks across all 10 categories.
Term & Exit Risks
Example Risk: Franchisee Financial Obligations
Blue Risk
Explanation
This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.
Potential Mitigations
- Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
- Conduct regular risk assessments
- Implement monitoring and reporting systems
Unlock Full Risk Analysis
Purchase the complete risk review to see all 102 risks across all 10 categories.
Miscellaneous Risks
Example Risk: Franchisee Financial Obligations
Blue Risk
Explanation
This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.
Potential Mitigations
- Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
- Conduct regular risk assessments
- Implement monitoring and reporting systems
Unlock Full Risk Analysis
Purchase the complete risk review to see all 102 risks across all 10 categories.
