In this exclusive Franchise Chatter FDD Talk post, you’ll learn the following:
Section I – Estimated initial investment (franchise costs) for a LIME Painting franchise, based on Item 7 of the company’s 2023 FDD
Section II – Initial franchise fee, royalty fee, and marketing fee for a LIME Painting franchise, based on Items 5 and 6 of the company’s 2023 FDD
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Section IV – News updates on the LIME Painting franchise opportunity
Section V – Presentation and analysis of LIME Painting’s financial performance representations (average revenues and/or profits), based on Item 19 of the company’s 2023 FDD, including information on the:
- 2016-2022 gross sales generated by 2 territories of the affiliate-owned LIME Painting business over each measurement period and combined/total gross sales generated from combined operations in each calendar year of operations
- 2022 total gross sales, cost of goods sold, disclosed expenses, estimated fees, and total gross sales less cost of goods sold, disclosed expenses, and estimated fees for the combined operations of the affiliate-owned LIME Painting business
- 2022 actual and average gross sales for the 13 franchised LIME Painting businesses that were actively open and operating as of January 2022
- 2022 average, median, highest, and lowest project invoice for the affiliate-owned LIME Painting business and 12 franchised LIME Painting businesses that were actively open and operating as of January 2022
Section VI – Key ratios, comparables, computations, and analyses for the LIME Painting franchise opportunity (exclusive content for Platinum subscribers)
Section I – LIME Painting Franchise Costs
- LIME Painting franchise costs, based on Item 7 of the company’s 2023 FDD:
- Initial Franchise Fee: $60,000
- Initial On-Site Training Fee: $7,000
- Travel Expenses to Corporate Training: $2,000 to $3,000
- Start-Up Package: $2,500 to $3,500
- Mobile Unit and Vehicle Wrap Package: $6,000 to $8,500
- Initial Technology Package (Including Pre-opening Technology Fees): $10,000
- Technology Fee(s) – 3 to 6 Months Post-Opening: $2,700 to $5,400
- Initial Marketing Spend: $10,000 to $20,000
- Digital Marketing Requirement – 3 to 6 Months Post-Opening: $4,500 to $9,000
- Licenses and Certifications: $250 to $675
- Insurance – Initial Premium(s): $3,500 to $5,000
- Professional Fees: $2,000 to $4,000
- Additional Funds – 3 to 6 Months: $15,250 to $65,000
- Total Estimated LIME Painting Franchise Costs: $125,700 to $201,075
Section II – LIME Painting’s Initial Franchise Fee, Royalty Fee, and Marketing Fee
- LIME Painting’s initial franchise fee, royalty fee, and marketing fee, based on Items 5 and 6 of the company’s 2023 FDD:
- Initial Franchise Fee: $60,000
- Royalty Fee: the greater of: (i) 7% of the Gross Sales of your Franchised Business; or (ii) the applicable minimum Royalty based on how long the Franchised Business has been open
- Fund Contribution: up to 3% of the Gross Sales of your Franchised Business; currently, LIME Painting is not collecting any Fund Contribution from new System franchisees
- Digital Marketing Requirement: then-current requirement based on the number of Territory(ies) in which you have the right to operate your Franchised Business. Currently, the requirement is $1,500/month (or $375/week) for a Franchised Business operating in 1 to 3 total Designated Territories (assuming up to 5 users).
- Local Advertising Requirement: a minimum of $500/month for a Franchised Business operating in 1 to 3 total Designated Territories
- Advertising Cooperative Fee: if such a Cooperative is established and involves your Franchised Business, then your contribution to such a Cooperative will not exceed your then-current Local Advertising Requirement
Section III – Number of Franchised and Company-Owned LIME Painting Outlets
Franchised
2020
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When I owned a UPS Store, I learned firsthand how much your ZIP code shapes your outcome. I sold my store at a premium because my territory was in a high-value area. The best areas go first, and once they're gone, they're gone. Enter your ZIP code, and a territory specialist will walk you through the franchises still available near you, drawing on information that isn't publicly accessible, saving you months of wasted research.🔴Free Webinar: 6 Under-the-Radar Franchise Concepts That Serious Buyers Should Know
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- Outlets at the End of the Year: 3
- Net Change: +2
2021
- Outlets at the Start of the Year: 3
- Outlets at the End of the Year: 17
- Net Change: +14
2022
- Outlets at the Start of the Year: 17
- Outlets at the End of the Year: 36
- Net Change: +19
Company-Owned
2020
- Outlets at the Start of the Year: 1*
- Outlets at the End of the Year: 1
- Net Change: 0
2021
- Outlets at the Start of the Year: 1
- Outlets at the End of the Year: 1
- Net Change: 0
2022
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When I owned a UPS Store, I learned firsthand how much your ZIP code shapes your outcome. I sold my store at a premium because my territory was in a high-value area. The best areas go first, and once they're gone, they're gone. Enter your ZIP code, and a territory specialist will walk you through the franchises still available near you, drawing on information that isn't publicly accessible, saving you months of wasted research.📈Dreaming of Multi‑Unit Success? Lock In Prime Territories Before They're Gone.
Colin started as a team member at 21 and now owns 6 locations in Tampa Bay. Lisa came from marketing and built 21 in San Diego. The most successful multi-unit owners move early and secure markets with room to grow. Use our free tool to search multiple ZIP codes and find franchises where you can still stack locations, before someone else does. A franchise specialist will be in touch to present what's available.- Outlets at the Start of the Year: 1
- Outlets at the End of the Year: 2#
- Net Change: +1
*This Affiliate Location operates within a geographical area comparable to two Designated Territories.
#This is a former Franchised Business reacquired in 2022 by LIME Painting’s affiliate to be operated as a second affiliate-owned Business.
Section IV – News Updates on the LIME Painting Franchise
Section V – Financial Performance Representations (Average Revenues and/or Profits) for the LIME Painting Franchise (Item 19, 2023 FDD)
- In the Item 19 charts below, LIME Painting discloses a comprehensive overview of the following historical performance results generated by its affiliate in connection with its ownership and operation of its affiliate-owned business that operates (i) in a substantially similar manner to a Franchised Business, and (ii) a geographical area within a geographical trading area that is comparable to two Designated Territories that are contiguous to one another and located in and around Denver, Colorado; and (iii) operated from a single Premises.
- The Item 19 charts below also disclose certain historical performance results generated by the Franchised Businesses that were open and operating throughout the 2022 calendar year (the “Disclosed Franchised Locations”) for each calendar year throughout which a given Disclosed Franchised Location was actively open and operating.
- Parts 3 and 4 of this Item 19 exclude the historical performance of: (i) four Franchised Businesses that were transferred at some point in 2022 and were not fully operational for the entire Measurement Period due to the transition (including location transfers to/from LIME Painting’s affiliate); (ii) one Franchised Business that was closed for a substantive portion of the 2022 calendar year due to personal reasons; and (iii) the System franchisees that launched Franchised Business operations at some point after January 2022 because they were not open for all (or nearly all) of the 2022 calendar year.
Part 1 – Gross Sales Generated by Each Affiliate Business Over Each Measurement Period and Combined/Total Gross Sales Generated from Combined Operations in Each Calendar Year of Operations
2016
- Affiliate Business – Designated Territory: $650,461
- Affiliate Business – Additional Territory No. 1: $1,008,902
- Total Gross Sales (2 Designated Territories): $1,659,363
2017
- Affiliate Business – Designated Territory: $1,090,490
- Affiliate Business – Additional Territory No. 1: $1,077,945
- Total Gross Sales (2 Designated Territories): $2,168,435
2018
- Affiliate Business – Designated Territory: $1,067,009
- Affiliate Business – Additional Territory No. 1: $941,729
- Total Gross Sales (2 Designated Territories): $2,008,738
2019
- Affiliate Business – Designated Territory: $642,910
- Affiliate Business – Additional Territory No. 1: $863,063
- Total Gross Sales (2 Designated Territories): $1,505,973
2020
- Affiliate Business – Designated Territory: $684,360
- Affiliate Business – Additional Territory No. 1: $860,917
- Total Gross Sales (2 Designated Territories): $1,545,277
2021
- Affiliate Business – Designated Territory: $754,210
- Affiliate Business – Additional Territory No. 1: $698,076
- Total Gross Sales (2 Designated Territories): $1,452,286
2022
- Affiliate Business – Designated Territory: $855,313
- Affiliate Business – Additional Territory No. 1: $741,769
- Total Gross Sales (2 Designated Territories): $1,597,082
Part 2 – Total Gross Sales Generated, as Well as Total COGS, Total of Certain Operating Expenses, and Total Estimated Fees Incurred, in Connection with Affiliate Location Operations (2022)
Gross Sales: $1,597,082 (100.0%)
Cost of Goods Sold
- Materials and Other COGS: $242,664 (15.2%)
- Total Subcontractor Expense: $599,628 (37.5%)
- Total COGS: $842,293 (52.7%)
Gross Sales Less Total COGS: $754,790 (47.3%)
Disclosed Expenses
- Indirect Labor: $255,327 (16.0%)
- Insurance: $15,425 (1.0%)
- Auto and Truck: $14,370 (0.9%)
- Other Applicable Expenses: $58,425 (3.7%)
- Total of Disclosed Expenses: $343,548 (21.5%)
Estimated Fees
- Required Royalty: $111,796 (7.0%)
- Required Digital Marketing Requirement: $18,000 (1.1%)
- Required Local Advertising Requirement: $6,000 (0.4%)
- Required Technology Fees: $10,800 (0.7%)
- Total Estimated Fees: $146,596 (9.2%)
Total Gross Sales Less Total COGS Less Disclosed Expenses: $264,646 (16.6%)
Part 3 – 2022 Calendar Year Gross Sales Generated by Franchised Locations That Were Actively Open and Operating as of January 2022
- Franchised Business No. 1 (Opened 2020) (2 Designated Territories): $730,552
- Franchised Business No. 2 (Opened 2020) (1 Designated Territory): $644,929
- Franchised Business No. 3 (Opened 2021) (3 Designated Territories): $346,194
- Franchised Business No. 4 (Opened 2021) (2 Designated Territories): $925,980
- Franchised Business No. 5 (Opened 2021) (3 Designated Territories): $605,181
- Franchised Business No. 6 (Opened 2020) (2 Designated Territories): $730,552
- Franchised Business No. 7 (Opened 2021) (2 Designated Territories): $540,264
- Franchised Business No. 8 (Opened 2021) (2 Designated Territories): $722,323
- Franchised Business No. 9 (Opened 2021) (3 Designated Territories): $292,696
- Franchised Business No. 10 (Opened 2022) (1 Designated Territory): $733,334
- Franchised Business No. 11 (Opened 2022) (2 Designated Territories): $392,696
- Franchised Business No. 12 (Opened 2022) (2 Designated Territories): $286,631
- Franchised Business No. 13 (Opened 2022) (1 Designated Territory): $332,340
- Average Gross Sales: $560,282
- In addition to the Franchised Business(es) that have been actively operating and offering/providing Approved Services since their respective openings, the following three Franchised Businesses determined not to actively operate the Franchised Business and promote, offer, and provide the Approved Services during one or more substantive periods during the 2022 calendar year (each, an “Applicable FA”) and that have entered into a form of resale addendum with LIME Painting.
- Applicable FA No. 1 (Opened 2021) (1 Territory): $15,212
- Applicable FA No. 2 (Opened 2021) (1 Territory): $112,210
- Applicable FA No. 3 (Opened 2021) (3 Territories): $116,122
Part 4 – Information Regarding Client Project Invoice Amounts and Project Mix by Affiliate Location and Each Disclosed Franchised Location Over 2022
Affiliate Location
- Average Project: $11,658
- Median Invoice: $10,123
- Highest Invoice: $153,520
- Lowest Invoice: $107
- Total Invoiced Projects: 137
- Projects $0-$9,999: 53
- Projects $10,000-$19,999: 45
- Projects $20,000+: 40
Franchised Location Average (12 Franchised Businesses)
- Average Project: $13,793
- Median Invoice: $8,931
- Highest Invoice: $104,986
- Lowest Invoice: $1,100
- Total Invoiced Projects: 45
- Projects $0-$9,999: 28
- Projects $10,000-$19,999: 18
- Projects $20,000+: 9
Section VI – LIME Painting Franchise Ratios, Comparables, Computations, and Analyses (Exclusive Content for Platinum Subscribers) ⬇️
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