LINE-X Franchise Cost & Fees
Date of Incorporation: 1993
Franchising Since: 2000
Headquarters: Huntsville, Alabama
Business Description: The franchisor is LINE-X Franchising LLC. The franchisor grants franchises for the establishment and operation of businesses specializing in the application of LINE-X brand spray-on protective coatings on truck beds and other in-store light industrial applications. The businesses also sell truck accessories, including Truck Gear by LINE-X an exclusive accessory line.
Franchise Offer: The franchisor grant franchises for the operation of a single LINE-X franchised business at a single location within a defined territory. Under limited circumstances, and only in a written addendum, the franchisor may permit franchisees to operate from multiple store-fronts in their designated territory.
Financial Assistance: The franchisor does not offer direct or indirect financing for any amount due under the Franchise Agreement. The franchisor does not guarantee a franchisee’s note, lease or any other obligation.
Training and Assistance: Training includes both classroom and on-the-job training. The franchisor may charge a tuition fee for any optional training programs. Franchisees and their manager must attend additional and/or refresher training programs, including national and regional conferences, conventions and meetings, as the franchisor may require, to correct improve and/or enhance operations.
Territory: Franchisees will receive an exclusive territory within a designated area. Within the Territory, the franchisor will not grant a franchise to another LINE-X Store, nor will it open a LINE-X Store that it owns. Franchisees will operate the Franchised Business from a location the franchisor approves. The Territory will be defined by a map and/or a related list of zip codes. The Territory will be independently determined between the franchisor and franchisee and may be based on (but not necessarily limited to) the following considerations: Number of households within the specified boundaries; number of potential customers residing within the specified boundaries, given current market demographics; drive times from the defined location; natural and man-made boundaries; and/or other reasonable criteria that the franchisor may apply.
Term of Agreement and Renewal: The length of the initial franchise term is 5 years from the date the Franchise Agreement is signed. If franchisees are current in all their obligations to the franchisor and meet the conditions for renewal, franchisees can renew for up to 2 additional successive terms of 5 years each.
Obligations and Restrictions: A person who has successfully completed mandatory training, and meets the then-current standards, must personally supervise the LINE-X Business on a full time basis. The franchisor requires that franchisees personally manage your LINE-X Store during the first 12 months of operation and strongly recommend full term on-site management by franchisees. In the event a franchisee owns and operates multiple LINE-X Stores and are unable to manage any of his/her LINE-X Stores full time for the first 12 months, then, with the franchisor’s prior written approval, he/she may designate a full time manager to manage any such LINE-X Store. The manager designated must successfully complete the required initial training program. Franchisees must offer for sale and sell only and all those products and services, and deal only with those suppliers, that the franchisor authorizes or requires, and have authorized.
Estimated Number of Units: 510
|Name of Fee||Low||High|
|Initial Franchise Fee||$15,000||$30,000|
|Initial Training Expenses||$1,500||$2,500|
|Graphics Package (includes Interior and Exterior Signage)||$7,000||$34,000|
|Licenses and Permits||$500||$1,500|
|Office Equipment and Supplies||$3,150||$5,000|
|Initial Inventory and Coating Products||$6,500||$6,500|
|Additional Funds - 3 months||$25,000||$50,000|
|Estimated Total Initial Investment||$118,001||$279,522|
|Type of Fee||Amount|
|Royalty fees||Typically, none. In certain situations, the franchisor may charge 5% or 12%.|
|LINE-X Brand Coatings, Chemicals, and Equipment||Approximately $3,250 per month. (Includes 925 pounds per month at approximately $3.38 per pound for the most popular product).|
|TRUCK GEAR by LINE-X Truck Accessories||Varies, depending upon the amount and type of accessories purchased.|
|Marketing Fund||Either: (i) $.10 - $.15 per pound of Coating Products purchased from the franchisor, or (ii) 1% to 5% of Gross Volume.|
|Local Advertising||Currently, 5% of Gross Volume. (Annually, may vary from 3% to 7% of Gross Volume.)|
|Cooperative Advertising||Pro rate share.|
|Late Fees||The greater of the highest applicable legal rate for open account business credit, or 1.5% per month.|
|Supplier/Supplies Approval||Reasonable cost of inspection and actual cost of test not to exceed $2,000|
|Advertising Co-Ops||Co-op assessments.|
|Insurance Policies||Amount of unpaid premium.|
|Renewal Fee||Not applicable.|
|Customer Compliant Fee||$250 per complaint.|
|Additional Training||$500 per day plus expenses.|
|Continuing Education||Franchisees must pay their expenses as well as their employees’ expenses in attending these programs.|
|Cost of Enforcement or Defense||All costs including attorneys’ fees.|
|Indemnification||All costs including attorneys’ fees.|
|Upgrades and Maintenance||Cost of required changes or modifications to the System.|
The above information has been taken from the FDD of LINE-X. Year of FDD: 2015
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