Lime Painting
LIME Painting offers independent franchisees the opportunity to provide painting services and home maintenance solutions through project management. Known for its comprehensive service offerings, LIME Painting operates in the competitive home improvement franchise market.
Lime Painting franchise FAQ
How much does it cost to open one — the total initial investment?
The total estimated initial investment necessary to begin operation of a LIME PAINTING® Franchised Business in a single territory ranges between $133,250 and $277,075. [p.1] This range includes costs such as the hardware and software required for operations, technology fees, professional fees, and additional capital for initial three to six months of operation.
What is the initial franchise fee?
The initial franchise fee amounts to $60,000 and must be paid in a lump sum at the time you enter into your Franchise Agreement [p.12]. This fee is deemed fully earned upon payment and is non-refundable [p.12].
What are the ongoing royalty and advertising fees?
The ongoing royalty fee is based on a percentage of the franchisee's monthly sales. Additionally, there is a minimum royalty fee requirement: $500 per month starting from the 7th to the 12th month of operation, then increasing to $1,500 per month for months 13 through 18, and finally to $3,000 per month after the 18th month. [p.86]
How long is the initial franchise agreement, and can I renew it?
The initial term of the franchise agreement is not specified in the excerpts. However, you may submit a request to renew the agreement for up to two additional consecutive ten-year terms, provided you comply with certain conditions and provide notice between six and twelve months before the end of the current term [p.83]. Additionally, there is a renewal fee of $10,000 per Designated or Additional Territory you wish to renew [p.153].
Can I sell or transfer my franchise, and what does that require?
Yes, you can sell or transfer your franchise, but it requires paying a Transfer Fee of $10,000 for each Designated Territory or Additional Territory you wish to sell or transfer. This must be done according to the terms and conditions of the Franchise Agreement and in compliance with applicable laws [p.153].
On what grounds can the franchisor terminate the agreement?
The franchisor can terminate the agreement on any grounds available by law [p.209]. Additionally, under Virginia state law, terminating a franchise without reasonable cause is unlawful unless the default or termination grounds stated in the franchise agreement constitute 'reasonable cause' as defined by law [p.211]. The franchisor also has the option to terminate rights for specific territories if certain conditions of the Franchise Agreement are violated within those territories but not others [p.154].
What financial requirements — net worth and liquid capital — do I need to qualify?
This isn't specified in the excerpts.
Do I get an exclusive or protected territory?
No, you do not receive an exclusive territory. You may face competition from other franchisees, outlets owned by the company, or other competitive brands controlled by them within your designated area [p.45]. Additionally, you cannot sub-license your franchise rights and must obtain permission to sell all of your territorial rights independently [p.47(iv)].
What training and ongoing support does the franchisor provide?
The franchisor provides pre-launch remote training for most franchisees [p.24], on-site initial training for the Initial Trainee Team, and may offer additional on-site assistance upon request at an additional cost [p.90]. Franchisees are also required to participate in a system-wide computer network for various operational purposes [p.43]. Additionally, ongoing support includes participation in recommended training procedures and other operational programs to the franchisor's satisfaction [p.84].
How many franchised outlets are there, and how many have closed or been terminated?
This isn't specified in the excerpts. The FDD does not provide a specific number of franchised outlets or those that have closed or been terminated. [p.68] mentions a list of current franchisees and those who have had their franchises terminated, canceled, or ceased operations, but it does not give numerical details.
Does the franchisor share any financial performance or earnings information?
The franchisor shares certain financial performance information based on reports from operating franchisees, but only for those who met specific criteria. This information is disclosed in Item 19 of the FDD [p.59]. The franchisor does not make any other financial performance representations except when providing actual records of an existing outlet being considered for purchase or if they supplement the information provided [p.63].
What am I restricted to selling, and where must I buy supplies?
You are restricted to offering and selling only the Approved Products and Approved Services as specified by the franchisor [p.94, p.51]. You may not offer or provide any other products/services without prior written consent from the franchisor [p.94]. Regarding supplies, you must purchase all inventory and supplies required to sell and provide the Approved Products and Approved Services from the franchisor or a limited group of suppliers designated by them, which may be more expensive than similar items available elsewhere [p.3] [p.95].