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 2024 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 2024 FDD

Section III – Number of franchised and company-owned LIME Painting outlets at the start of the year and the end of the year for 2021, 2022, and 2023, based on Item 20 of the company’s 2024 FDD

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 2024 FDD, including information on the:

• 2023 average, median, high, and low projects sold for the 14 LIME Painting franchise owners operating in 30 territories that were open and operating during the entire 2023 calendar year

• 2023 average, median, high, and low percentage of dollars collected from projects sold for the 14 LIME Painting franchise owners operating in 30 territories that were open and operating during the entire 2023 calendar year

• 2023 average, median, high, and low project amount for the 14 LIME Painting franchise owners operating in 30 territories that were open and operating during the entire 2023 calendar year

• 2023 average, median, high, and low gross profit margin for the 14 LIME Painting franchise owners operating in 30 territories that were open and operating during the entire 2023 calendar year

• 2023 average, median, high, and low wage margin for the 14 LIME Painting franchise owners operating in 30 territories that were open and operating during the entire 2023 calendar year

• 2023 average, median, high, and low certain marketing and operations expenses margin for the 14 LIME Painting franchise owners operating in 30 territories that were open and operating during the entire 2023 calendar year

• 2023 average, median, high, and low adjusted earnings margin for the 14 LIME Painting franchise owners operating in 30 territories that were open and operating during the entire 2023 calendar year

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 2024 FDD:

• Initial Franchise Fee:  $60,000
• Initial On-Site Training Fee:  $8,000
• 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 $90,000
• Total Estimated LIME Painting Franchise Costs:  $126,700 to $227,075

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 2024 FDD:

• Initial Franchise Fee:  $60,000

• Royalty Fee:  Royalty Fee is the greater of (i) the percentage listed below, or (ii) the required Minimum Royalty payment. On your first $2,500,000 in annual Gross Sales, the Royalty Fee is 7% of Gross Sales. The Royalty Fee is 5% of Gross Sales on your Gross Sales between $2,500,000.01 and $5,000,000. The Royalty Fee on Gross Sales of $5,000,000.01 or greater is 4% of Gross Sales. The Minimum Royalty starts once your Franchised Business has been operating for a period of six months, and is: (i) $500/month starting in your 6th full calendar month of operation and continuing through your 11th full month of operation; (ii) $1,500/month in months 12 through 17 of operation after your initial launch; and (iii) $3,000/month in your 18th and each subsequent calendar month of operation of your franchise term in connection with that Franchised Business.

• Fund Contribution:  if your annual Gross Sales are $2,500,000 or less, then your contribution to the Brand Fund is 100% of the then-current amount. If your annual Gross Sales are greater than $2,500,000, but less than $5,000,000, then your contribution to the Brand Fund is the then-current amount, less 1%. Only if the Brand Fund Contribution is set at 3% and you generate $5,000,000 or more in annual Gross Sales, then your contribution to the Brand Fund will be 1% of Gross Sales. LIME Painting reserves the right to require you to contribute an amount equal to up to 3% of the Gross Sales of your Franchised Business.

• 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.

• 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

2021

• Outlets at the Start of the Year:  4
• Outlets at the End of the Year:  31
• Net Change:  +27

2022

• Outlets at the Start of the Year:  31
• Outlets at the End of the Year:  65
• Net Change:  +34

2023

• Outlets at the Start of the Year:  65
• Outlets at the End of the Year:  79
• Net Change:  +14

Company-Owned

2021

• Outlets at the Start of the Year:  2
• Outlets at the End of the Year:  2
• Net Change:  0

2022

• Outlets at the Start of the Year:  2
• Outlets at the End of the Year:  2
• Net Change:  0

2023

• Outlets at the Start of the Year:  2
• Outlets at the End of the Year:  3
• Net Change:  +1

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, 2024 FDD)

• As of December 31, 2023, LIME Painting had 34 franchise owners in 79 Territories (each, a “Franchise Owner”) and three affiliates (each, an “Affiliate Owner”) open and operating. This Financial Performance Representation includes data in connection with 14 Franchise Owners operating in 30 Territories.

• This Financial Performance Representations set forth the Average, Median, High, and Low Total Projects Sold, Dollars Collected from Projects Sold, Average Project Amount, Gross Profit Margin, Wages, Certain Marketing and Operations Expenses, and Adjusted Net Income for the Franchise Owners, split into the top 25%, top 50%, bottom 50%, and bottom 25% during the 2023 calendar year (the “Measurement Period”).

• This Financial Performance Representation excludes data in connection with:

• (i) seven Franchise Owners operating in a total of 13 Territories since those owners opened during the Measurement Period and were not otherwise open the entire Measurement Period,

• (ii) one Franchise Owner that operates in four Territories where that Franchise Owner opened in two of the four Territories during the Measurement Period and their other two Territories were inactive for at least 45 days during the Measurement Period as a result of staffing shortages,

• (iii) one Franchise Owner that operates in three Territories that received an assignment of those Territories during the Measurement Period,

• (iv) one Franchise Owner that operates in two Territories that received an assignment of those Territories during the Measurement Period and was inactive for at least 45 days during the Measurement Period as a result of not staffing their business based on LIME Painting’s recommendations,

• (v) one Franchise Owner operating in five Territories where the owner received an assignment of two Territories during the Measurement Period and was inactive for at least 45 days during the Measurement Period as a result of not staffing their business based on LIME Painting’s recommendations, and

• (vi) nine Franchise Owners operating in 22 Territories where those owners were inactive for at least 45 days during the Measurement Period and not staffing their business based on LIME Painting’s recommendations.

Part 1 – Projects Sold

• “Projects Sold” means the total number of projects that were booked.

Top 25%

• Average Amount:  $2,577,944
• Median Amount:  $1,959,400
• High Amount:  $3,896,727
• Low Amount:  $1,877,703

Top 50%

• Average Amount:  $1,706,643
• Median Amount:  $1,382,018
• High Amount:  $3,896,727
• Low Amount:  $786,083

Bottom 50%

• Average Amount:  $1,484,259
• Median Amount:  $404,080
• High Amount:  $683,268
• Low Amount:  $349,607

Bottom 25%

• Average Amount:  $381,523
• Median Amount:  $386,202
• High Amount:  $404,080
• Low Amount:  $349,607

All

• Average Amount:  $1,095,451
• Median Amount:  $734,675
• High Amount:  $3,896,727
• Low Amount:  $349,607

Part 2 – Percentage of Dollars Collected from Projects Sold

• “Percentage of Dollars Collected from Projects Sold” is calculated by taking the total dollars actually collected and dividing that number by the total Projects Sold.

Top 25%

• Average Amount:  100%
• Median Amount:  100%
• High Amount:  100%
• Low Amount:  100%

Top 50%

• Average Amount:  98%
• Median Amount:  100%
• High Amount:  100%
• Low Amount:  93%

Bottom 50%

• Average Amount:  48%
• Median Amount:  49%
• High Amount:  84%
• Low Amount:  9%

Bottom 25%

• Average Amount:  29%
• Median Amount:  29%
• High Amount:  49%
• Low Amount:  9%

All

• Average Amount:  73%
• Median Amount:  89%
• High Amount:  100%
• Low Amount:  9%

Part 3 – Average Project Amount

• “Average Project Amount” is calculated by taking the total Projects Sold and dividing that amount by the number of projects that were booked.

Top 25%

• Average Amount:  $88,267
• Median Amount:  $36,110
• High Amount:  $194,836
• Low Amount:  $33,856

Top 50%

• Average Amount:  $45,012
• Median Amount:  $12,948
• High Amount:  $194,836
• Low Amount:  $12,230

Bottom 50%

• Average Amount:  $8,829
• Median Amount:  $8,247
• High Amount:  $12,219
• Low Amount:  $5,355

Bottom 25%

• Average Amount:  $6,946
• Median Amount:  $7,090
• High Amount:  $8,247
• Low Amount:  $5,355

All

• Average Amount:  $26,921
• Median Amount:  $12,225
• High Amount:  $194,836
• Low Amount:  $5,355

Part 4 – Gross Profit Margin

• “Gross Profit Margin” is calculated by taking the Total Dollars Collected and subtracting the Materials and Subcontractor Labor from that amount. LIME Painting then took the difference of those amounts and divided it by the Total Dollars Collected and multiplied it by 100 to get the Gross Profit Margin percentage.

Top 25%

• Average Amount:  55%
• Median Amount:  52%
• High Amount:  63%
• Low Amount:  51%

Top 50%

• Average Amount:  51%
• Median Amount:  49%
• High Amount:  63%
• Low Amount:  46%

Bottom 50%

• Average Amount:  42%
• Median Amount:  41%
• High Amount:  45%
• Low Amount:  38%

Bottom 25%

• Average Amount:  40%
• Median Amount:  41%
• High Amount:  41%
• Low Amount:  38%

All

• Average Amount:  46%
• Median Amount:  46%
• High Amount:  63%
• Low Amount:  38%

Part 5 – Wage Margin

• “Wage Margin” includes costs such as payroll expenses, taxes, and processing. It does not include amounts paid to subcontractors. Wage Margin is calculated by adding together payroll expenses, taxes, and processing and dividing that amount by the Total Dollars Collected. LIME Painting then took the quotient of that amount and multiplied it by 100 to get the Wage Margin percentage.

Top 25%

• Average Amount:  0%
• Median Amount:  0%
• High Amount:  0%
• Low Amount:  0%

Top 50%

• Average Amount:  3%
• Median Amount:  0%
• High Amount:  10%
• Low Amount:  0%

Bottom 50%

• Average Amount:  14%
• Median Amount:  11%
• High Amount:  25%
• Low Amount:  10%

Bottom 25%

• Average Amount:  17%
• Median Amount:  17%
• High Amount:  25%
• Low Amount:  11%

All

• Average Amount:  9%
• Median Amount:  10%
• High Amount:  25%
• Low Amount:  0%

Part 6 – Certain Marketing and Operations Expenses Margin

• “Certain Marketing and Operations Expenses Margin” is calculated by adding together the Royalty Fee, Fund Contribution, Technology Fee, Digital Marketing Requirement, Local Advertising Requirement, Call Center Fees, automobile expenses, insurance, supplies, and equipment and dividing that amount by the Total Dollars Collected by each franchisee.

Top 25%

• Average Amount:  13%
• Median Amount:  13%
• High Amount:  17%
• Low Amount:  8%

Top 50%

• Average Amount:  16%
• Median Amount:  18%
• High Amount:  20%
• Low Amount:  8%

Bottom 50%

• Average Amount:  27%
• Median Amount:  28%
• High Amount:  31%
• Low Amount:  23%

Bottom 25%

• Average Amount:  30%
• Median Amount:  30%
• High Amount:  31%
• Low Amount:  28%

All

• Average Amount:  22%
• Median Amount:  22%
• High Amount:  31%
• Low Amount:  8%

Part 7 – Adjusted Earnings Margin

• “Adjusted Earnings Margin” is calculated by taking the Gross Profit and subtracting the Certain Marketing and Operations Expenses from that amount. LIME Painting then took the product of that amount and divided it by the Total Dollars Collected and multiplied it by 100 to get the Adjusted Earnings Margin percentage.

Top 25%

• Average Amount:  35%
• Median Amount:  32%
• High Amount:  43%
• Low Amount:  30%

Top 50%

• Average Amount:  29%
• Median Amount:  27%
• High Amount:  43%
• Low Amount:  22%

Bottom 50%

• Average Amount:  12%
• Median Amount:  9%
• High Amount:  20%
• Low Amount:  7%

Bottom 25%

• Average Amount:  8%
• Median Amount:  7%
• High Amount:  9%
• Low Amount:  7%

All

• Average Amount:  20%
• Median Amount:  21%
• High Amount:  43%
• Low Amount:  7%

• Some outlets have earned this amount. Your individual results may differ. There is no assurance that you’ll earn as much.

Section VI – LIME Painting Franchise Ratios, Comparables, Computations, and Analyses (Exclusive Content for Platinum Subscribers) ⬇️