In this exclusive Franchise Chatter FDD Talk post, you’ll learn the following:

Section I – Estimated initial investment (franchise costs) for an Outdoor Lighting Perspectives franchise, based on Item 7 of the company’s 2024 FDD

Section II – Initial franchise fee, royalty fee, and marketing fee for an Outdoor Lighting Perspectives franchise, based on Items 5 and 6 of the company’s 2024 FDD

Section III – Number of franchised and company-owned Outdoor Lighting Perspectives 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 Outdoor Lighting Perspectives franchise opportunity

Section V – Presentation and analysis of Outdoor Lighting Perspectives’ financial performance representations (average revenues and/or profits), based on Item 19 of the company’s 2024 FDD, including information on the:

• 2023 reporting period average, median, highest, and lowest gross revenue for the 40 single-territory, 29 multi-territory, and all 69 (single-territory and multi-territory) Outdoor Lighting Perspectives franchisees that were operational during the reporting period (October 1, 2022 to September 30, 2023), including Outdoor Lighting Perspectives franchisees operating in the United States and one in Canada

• first year, second year, and third year (as applicable) average gross revenue for the Outdoor Lighting Perspectives franchisees that conducted their first full calendar year of operations in 2019, 2020, 2021, or 2022

• 2022 average revenue, cost of goods sold (labor and materials), gross profit margin, certain marketing & operating expenses (royalties, local marketing investments, national brand marketing fund investments, office manager compensation, small tools, equipment & uniform expense, bank service charges & merchant fees, insurance, licenses & permits, and IT & telephone), and total revenue less cost of goods sold and certain required marketing & operating expenses for the 45 Outdoor Lighting Perspectives franchisees operating in 75 territories that had been open and operating on a full-time basis for at least 2 full years as of December 31, 2022 and participated in the financial Benchmarking Study

• 2023 average retail price per new residential landscape lighting install project, average retail price per holiday lighting project, and average retail price per permanent lighting install project for the Outdoor Lighting Perspectives reporting franchisees that were operational at any point during the reporting period

Section VI – Key ratios, comparables, computations, and analyses for the Outdoor Lighting Perspectives franchise opportunity (exclusive content for Platinum subscribers)

Section I – Outdoor Lighting Perspectives Franchise Costs

• Outdoor Lighting Perspectives franchise costs, based on Item 7 of the company’s 2024 FDD:

• Initial Franchise Fee:  $32,175 to $59,500
• Initial Marketing Collateral:  $2,000 to $3,000
• Vehicle Wrap:  $3,000 to $4,000
• Trade Show Booth:  $1,500 to $2,000
• Travel and Living Expense While Training:  $2,000 to $3,500
• Tools and Equipment:  $1,000 to $2,000
• Computer Hardware and Software:  $0 to $1,200
• Inventory:  $13,000 to $14,000
• Start-up Marketing and Advertising (for the first 90 days after satisfactorily completing the initial training):  $25,000 to $55,000
• Vehicle:  $0 to $50,000
• Additional Funds (3 months):  $20,000
• Total Estimated Outdoor Lighting Perspectives Franchise Costs:  $99,675 to $214,200

Section II – Outdoor Lighting Perspectives’ Initial Franchise Fee, Royalty Fee, and Marketing Fee

• Outdoor Lighting Perspectives’ initial franchise fee, royalty fee, and marketing fee, based on Items 5 and 6 of the company’s 2024 FDD:

• Initial Franchise Fee:  $32,175 to $59,500

• Royalty:  the greater of: (a) the sum of 7% of Gross Revenue; or (b) the Minimum Royalty of $1,100 per month. If Gross Revenue exceeds $1,500,000, the Royalty Fee will be reduced to the greater of the Minimum Royalty or 5.5% of Gross Revenue from all sources for the remainder of that calendar year. If Gross Revenue exceeds $2,500,000, the Royalty Fee will be reduced to the greater of the Minimum Royalty or 4.5% of Gross Revenue from all sources for the remainder of that calendar year. If Gross Revenue exceeds $3,500,000, the Royalty Fee will be reduced to the greater of the Minimum Royalty or 3.5% of Gross Revenue from all sources for the remainder of that calendar year.

• National Branding & Marketing Fee:  2% on the first $1,500,000 of Gross Revenues in a calendar year. If Gross Revenue exceeds $1,500,000 in a calendar year, the National Branding & Marketing Fee will be reduced to 1%. If Gross Revenue exceeds $2,500,000 in a calendar year, the National Branding & Marketing Fee will be reduced to 0.5%. If Gross Revenue exceeds $3,500,000 in a calendar year, the National Branding & Marketing Fee will be reduced to 0%.

• Digital Marketing Fee:  Outdoor Lighting Perspectives’ then-current fee, currently $300 per month

• Individual Advertising Investment:  minimum $55,000 per calendar year for 1 territory. Minimum $100,000 per calendar year if you are granted 2 contiguous territories, plus an additional $35,000 per calendar year for each additional contiguous territory.

Section III – Number of Franchised and Company-Owned Outdoor Lighting Perspectives Outlets

Franchised

2021

• Outlets at the Start of the Year:  85
• Outlets at the End of the Year:  102
• Net Change:  +17

2022

• Outlets at the Start of the Year:  102
• Outlets at the End of the Year:  110
• Net Change:  +8

2023

• Outlets at the Start of the Year:  110
• Outlets at the End of the Year:  128
• Net Change:  +18

Company-Owned

2021

• Outlets at the Start of the Year:  3
• Outlets at the End of the Year:  0
• Net Change:  -3

2022

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

2023

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

Section IV – News Updates on the Outdoor Lighting Perspectives Franchise

Section V – Financial Performance Representations (Average Revenues and/or Profits) for the Outdoor Lighting Perspectives Franchise (Item 19, 2024 FDD)

Part 1 – Average Gross Revenues for Outdoor Lighting Businesses for the 12 Months Ending September 30, 2023

• The following table presents Gross Revenue information realized by certain Outdoor Lighting Perspectives franchisees in the United States during the period between October 1, 2022 and September 30, 2023 (“Reporting Period”).

• The information provided in the table below was compiled from 69 Outdoor Lighting Perspectives franchisees that were operational during the Reporting Period, including Outdoor Lighting Perspectives franchisees operating in the United States and one in Canada. These franchisees operated 110 franchise territories during the Reporting Period.

• 19 of the franchisees operated in 2 territories under 2 different Franchise Agreements during the entire Reporting Period and report Gross Revenue to Outdoor Lighting Perspectives for both territories on the same report, six franchisees operated 3 Territories under different Franchise Agreements and report Gross Revenue to Outdoor Lighting Perspectives for all Territories on the same report, two franchisees operated 4 Territories under different Franchise Agreements and report Gross Revenue to Outdoor Lighting Perspectives for all Territories on the same report, one franchisee operated 5 Territories under different Franchise Agreements and report Gross Revenue to Outdoor Lighting Perspectives for all Territories on the same report, and one franchisee operated 7 Territories under different Franchise Agreements and report Gross Revenue to Outdoor Lighting Perspectives for all Territories on the same report.

• The data excludes 19 franchise territories that commenced operations during the Reporting Period, and one franchise territory that ceased operations during the Reporting Period.

• For the data received from the Canadian franchisee, Outdoor Lighting Perspectives calculated their Gross Revenue in local currency and converted to US Dollars.

A. All Operational Franchisees

Sales Volume: Greater Than $1.0M

• Number of Franchisees:  18
• Minimum Gross Revenue:  $1,024,278
• Average Gross Revenue:  $1,650,576
• Maximum Gross Revenue:  $3,064,209
• Median Gross Revenue:  $1,453,050
• Number and Percentage of Franchisees Above Average:  8 (44%)

Sales Volume: Between $600K and $1.0M

• Number of Franchisees:  16
• Minimum Gross Revenue:  $618,272
• Average Gross Revenue:  $797,546
• Maximum Gross Revenue:  $991,477
• Median Gross Revenue:  $780,155
• Number and Percentage of Franchisees Above Average:  7 (44%)

Sales Volume: Between $300K and $600K

• Number of Franchisees:  19
• Minimum Gross Revenue:  $314,560
• Average Gross Revenue:  $430,799
• Maximum Gross Revenue:  $591,676
• Median Gross Revenue:  $392,369
• Number and Percentage of Franchisees Above Average:  8 (42%)

Sales Volume: Less Than $300K

• Number of Franchisees:  16
• Minimum Gross Revenue:  $68,844
• Average Gross Revenue:  $210,361
• Maximum Gross Revenue:  $296,734
• Median Gross Revenue:  $239,984
• Number and Percentage of Franchisees Above Average:  9 (56%)

Total

• Number of Franchisees:  69
• Average Gross Revenue:  $782,928
• Median Gross Revenue:  $591,676
• Number and Percentage of Franchisees Above Average:  25 (36%)

B. Single-Territory Franchisees

Sales Volume: Greater Than $750K

• Number of Franchisees:  10
• Minimum Gross Revenue:  $761,537
• Average Gross Revenue:  $1,190,207
• Maximum Gross Revenue:  $1,883,529
• Median Gross Revenue:  $1,068,715
• Number and Percentage of Franchisees Above Average:  3 (30%)

Sales Volume: Between $500K and $750K

• Number of Franchisees:  8
• Minimum Gross Revenue:  $506,405
• Average Gross Revenue:  $599,882
• Maximum Gross Revenue:  $714,669
• Median Gross Revenue:  $604,974
• Number and Percentage of Franchisees Above Average:  4 (50%)

Sales Volume: Between $250K and $500K

• Number of Franchisees:  12
• Minimum Gross Revenue:  $252,054
• Average Gross Revenue:  $353,389
• Maximum Gross Revenue:  $463,793
• Median Gross Revenue:  $350,787
• Number and Percentage of Franchisees Above Average:  6 (50%)

Sales Volume: Less Than $250K

• Number of Franchisees:  10
• Minimum Gross Revenue:  $68,844
• Average Gross Revenue:  $169,924
• Maximum Gross Revenue:  $245,745
• Median Gross Revenue:  $179,314
• Number and Percentage of Franchisees Above Average:  6 (60%)

Total

• Number of Franchisees:  40
• Average Gross Revenue:  $566,026
• Median Gross Revenue:  $405,503
• Number and Percentage of Franchisees Above Average:  15 (38%)

C. Multi-Territory Franchisees

• These 29 Outdoor Lighting Perspectives franchisees reported Gross Revenue to Outdoor Lighting Perspectives for all territories on the same report. As a result, for the purposes of the table below, each of these 29 Outdoor Lighting Perspectives franchisees was considered to be one franchisee even though they operate in more than 1 Territory.

Sales Volume: Greater Than $1.2M

• Number of Franchisees:  10
• Minimum Gross Revenue:  $1,201,591
• Average Gross Revenue:  $1,926,222
• Maximum Gross Revenue:  $3,064,209
• Median Gross Revenue:  $1,707,824
• Number and Percentage of Franchisees Above Average:  4 (40%)

Sales Volume: Between $600K and $1.2M

• Number of Franchisees:  10
• Minimum Gross Revenue:  $734,923
• Average Gross Revenue:  $867,051
• Maximum Gross Revenue:  $1,163,803
• Median Gross Revenue:  $802,698
• Number and Percentage of Franchisees Above Average:  4 (40%)

Sales Volume:  Less Than $600K

• Number of Franchisees:  9
• Minimum Gross Revenue:  $256,156
• Average Gross Revenue:  $383,143
• Maximum Gross Revenue:  $554,779
• Median Gross Revenue:  $391,246
• Number and Percentage of Franchisees Above Average:  5 (56%)

Total

• Number of Franchisees:  29
• Average Gross Revenue:  $1,082,104
• Median Gross Revenue:  $807,768
• Number and Percentage of Franchisees Above Average:  11 (38%)

• The Average Gross Revenue figures presented above represent the total dollar value of customer installation contracts and ongoing maintenance services sold during the Reporting Period by the Outdoor Lighting Perspectives franchisees identified above.

Part 2 – Average Gross Revenues of Certain Outdoor Lighting Perspectives Businesses for the 12 Months Ending December 31, 2022

• The following table presents information for Outdoor Lighting Perspectives franchisees that conducted their first full calendar year of operations in 2019, 2020, 2021, or 2022.

• As of December 31, 2022, there were 7 Franchisees that opened in 2018 and conducted their first full calendar year of operations in 2019 (“2019 New Franchisees”), there were 9 Franchisees that opened in 2019 and conducted their first full calendar year of operations in 2020 (“2020 New Franchisees”), there were 9 Franchisees that opened in 2020 and conducted their first full calendar year of operations in 2021 (“2021 New Franchisees”), and there were 9 Franchisees that opened in 2021 and conducted their first full calendar year of operations in 2022 (“2022 New Franchisees”).

• The table also shows Gross Revenues for each of these groups for their respective first three full years of operation, to the extent applicable.

2019 New Franchisees

• Number of Reporting Franchisees:  7
• Average Sales – First Year:  $217,172
• Average Sales – Second Year:  $348,863
• Average Sales – Third Year:  $474,285

2020 New Franchisees

• Number of Reporting Franchisees:  9
• Average Sales – First Year:  $298,709
• Average Sales – Second Year:  $501,534
• Average Sales – Third Year:  $402,915

2021 New Franchisees

• Number of Reporting Franchisees:  9
• Average Sales – First Year:  $434,856
• Average Sales – Second Year:  $576,838

2022 New Franchisees

• Number of Reporting Franchisees:  9
• Average Sales – First Year:  $327,382

• Of the 7 2019 New Franchisees, one (14%) operated more than one territory. Of the 9 2020 New Franchisees, three (33%) operated more than one territory. Of the 9 2021 New Franchisees, two (22%) operated more than one territory. Of the 9 2022 New Franchisees, one (11%) operated more than one territory.

Part 3 – Benchmarking Study for Outdoor Lighting Businesses for the 12 Months Ending December 31, 2022

• In 2023, Outdoor Lighting Perspectives conducted a financial Benchmarking Study for Outdoor Lighting Perspectives franchisees.

• The Benchmarking Study was conducted solely on a voluntary basis and was offered only to franchisees who had been operating their Outdoor Lighting Businesses at least 12 months at the time of the Benchmarking Study. As a result, 7 franchisees who joined the system in 2022 were ineligible to participate in the Benchmarking Study.

• Interested franchisees were required to submit their income statements for the year ending December 31, 2022 (“Benchmarking Reporting Period”). Outdoor Lighting Perspectives then calculated certain financial metrics to allow participants to compare their financial performance against their peer group of Outdoor Lighting Perspectives franchisees.

• 58 Reporting Franchisees operating 91 territories out of 118 (77%) Outdoor Lighting Perspectives franchised territories as of December 31, 2022, participated in the Benchmarking Study.

• All of the 58 Outdoor Lighting Perspectives Reporting Franchisees were located in the United States or Canada. Outdoor Lighting Perspectives has reviewed the composition of franchise participants and believes it contains a random, representative sampling of Outdoor Lighting Perspectives franchised territories based on level of sales, years in the business, and geography.

Revenue Minus COGS and Certain Marketing & Operating Expenses (Averages)

Revenue:  $903,654 (100.0%)

Cost of Goods Sold:

• Labor:  $150,976 (16.7%)
• Materials:  $266,949 (29.5%)

Gross Profit Margin:  $485,729 (53.8%)

Certain Marketing & Operating Expenses

• Royalties:  $63,256 (7.0%)
• Local Marketing Investments:  $74,799 (8.3%)
• National Brand Marketing Fund Investments:  $13,555 (1.5%)
• Office Manager Compensation:  $57,891 (6.4%)
• Small Tools, Equipment & Uniform Expense:  $7,233 (0.8%)
• Vehicle Expense:  $36,216 (4.0%)
• Bank Service Charges & Merchant Fees:  $17,620 (1.9%)
• Insurance:  $18,313 (2.0%)
• Licenses & Permits:  $904 (0.1%)
• IT & Telephone:  $13,390 (1.5%)

Total Revenue Less Cost of Goods Sold and Certain Required Marketing & Operating Expenses:  $182,551 (20.2%)

• “Labor” is all direct labor costs including direct payroll and payroll taxes for employee installers providing installation, repair, and maintenance services, but does not include Officer Manager Compensation (as defined below). In addition, some franchisees hire subcontracted labor primarily for the installation of decorative lighting systems and those costs are included in Cost of Labor. The Cost of Labor does not include benefits or unemployment insurance.

• “Materials” includes all products utilized in installing Outdoor Lighting or decorative lighting systems including bulbs, fixtures, wire, fasteners, transformers, and other accessories.

• “Local Marketing Investments” means the amount spent on advertising and marketing activities within their territories.

• “National Brand Marketing Fund Investments” has the same general meaning as the National Branding & Marketing Fees as described in the FDD.

• “Office Manager Compensation” means compensation paid to either part-time or full-time office administration staff to answer phones, respond to new customer inquiries, assist in scheduling, help maintain data in the field services IT platform, and sometimes light bookkeeping.

• “Small Tools, Equipment & Uniform Expense” means all usual and customary hand tools, wire strippers, trenching shovels, screw drivers, wire-nuts conduit, and branded apparel.

• “Vehicle Expense” is reported vehicle related expenses including costs associated with operating service vehicles utilized by installers to provide Outdoor Lighting installation, repair and maintenance services, the cost of vehicle leases, fuel, and vehicle maintenance. It does not include automobile insurance costs, and if the Reporting Franchisees own the vehicle, it does not include depreciation expense associated with the vehicle.

• “Bank Service Charges & Merchant Fees” means customary fees associated with maintaining a local banking relationship and accepting payment from customers via credit cards.

• “Insurance” means the amount spent on insurance coverage policies required under the FDD.

• “License & Permits” means the amount spent on maintaining required licenses and permits in order to operate their Outdoor Lighting Business during their second or subsequent full year of operations.

• “IT & Telephone” means the amount spent on licensing the field services technology platform for office and field devices and maintaining a VOIP phone system.

• “Total Revenue Less Cost of Goods Sold and Certain Required Marketing & Operating Expenses” means the average total Revenue minus Labor, Materials, Royalties, Local Marketing Investments, National Brand Marketing Fund Investments, Office Manager Compensation, Small Tools, Equipment & Uniform Expense, Vehicle Expense, Bank Service Charges & Merchant Fees, Insurance, License & Permits, and IT & Telephone. This amount does not equal the average gross profit of the 45 Reporting Franchisees that had been open and operating on a full-time basis for at least two years as of December 31, 2022, as they each incurred additional costs and expenses that are not reflected in this Part 3.

Part 4 – Average Retail Price Per New Residential Landscape Lighting Install Project, Holiday Lighting Project, and Permanent Lighting Install Project During the Last 12 Months Ending September 30, 2023

• The information provided in the table below was compiled from 78 of the 79 (99%) Outdoor Lighting Perspectives franchisees that were operational at any point during the Reporting Period, including all Outdoor Lighting Perspectives franchised territories operating in the United States and Canada (“Reporting Franchisees”).

• The data excludes the 6 franchisees that did not provide the data necessary to analyze the number of new lighting system installation projects or the number of fixtures installed in new lighting system installations.

• Further, it is important to note that installation of New Residential Landscape Lighting Install Projects, Holiday Lighting Projects, and Permanent Lighting Install Projects represents only a portion of the overall activities performed by an Outdoor Lighting Perspectives franchisee in the operation of the Outdoor Lighting Business.

• Other activities and revenue included in the Outdoor Lighting Business include revenue from commercial outdoor lighting projects, maintenance and service on existing installed residential architectural and landscape lighting systems, add-ons or expansions of existing residential lighting systems, revenues from contractual annual maintenance plans, or revenue from retro fitting existing installed lighting systems to new LED technology.

• Average Retail Price per New Residential Landscape Lighting Install Project (78 Reporting Franchisees):  $4,236.60
• Average Retail Price per Holiday Lighting Project (62 Reporting Franchisees):  $1,670.61
• Average Retail Price per Permanent Lighting Install Project (40 Reporting Franchisees):  $4,543.30

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

Section VI – Outdoor Lighting Perspectives Franchise Ratios, Comparables, Computations, and Analyses (Exclusive Content for Platinum Subscribers) ⬇️