How To's
Want To Open a LINE-X Franchise? Here’s What It Will Cost You.
If you are looking for a business to start, we highly encourage that you choose LINE-X. You might think that they only service trucks and SUVs. However, their products, specifically their protective coatings, are also used in industrial projects. This includes bridges, construction equipment, and even stadium seats. Now, let’s learn more about the company and the estimated LINE-X franchise cost. This will allow us to gauge if it’s the right business for you.
Franchise Description
The franchisor of the company is LINE-X Franchising LLC. They allow the franchisees to provide LINE-X’s spray-on protective coatings on truck beds. Apart from this, there are other truck accessories that you can offer to your customers.
The franchisor will grant only one franchise per defined location. The franchisees could operate from multiple storefronts within the designated territory, but a written addendum or agreement should be present.
Franchisee Training
The franchisor provides both classroom training and on-the-job training to its franchisees. The classroom training is facilitated at the company’s headquarters located in Hunstville, Alabama. For the actual or hands-on training, this could be done at the franchisee’s center or business location.
If there are additional training programs, the franchisor could ask or charge a corresponding fee. The franchisees and the manager are obliged to attend training or refresher programs. This includes conferences, meetings, and conventions, as recommended by the franchisor. These training programs are intended to improve operations.
Generally, a franchisee should attend a refresher training program every five years.
Territory
The franchisees may enjoy exclusive territory within their designated location. During the course of the agreement, the franchisor will not grant other franchisees nor put up a wholly-owned facility in the same area.
The franchisees can only operate the business at locations that are pre-approved by the franchisor. These locations are determined using several considerations which are listed below:
- Number of households within the specified boundaries
- Number of potential customers
- Current market demographics
This is just a partial list of what the franchisor uses when identifying the franchisee’s territory.
Franchisee Obligations
The person who attended the training must supervise the operations of LINE-X, provided that they have completed and met the required standards. They must be able to spearhead the operations on a full-time basis.
The franchisor mandates the franchisee to manage the site during the first year of operations. If in case a franchisee has several stores, they must designate full-time managers. This should be approved and documented by the franchisor.
Franchisees are only to offer products and services that are authorized by the franchisor.
Term of Agreement
The term of the agreement is good for five years from the date that the Franchise Agreement was signed. This could be renewed for two additional terms with five years each, as long as the franchisees could meet the set requirements.
Financial Assistance
The franchisor’s vendors may provide upgrades for equipment used in LINE-X stores. If the franchisees are in good standing, the franchisor may offer financing to get the necessary upgrades. However, apart from this offer, the franchisor does not provide any other financial assistance.
Did You Know?
There are a few interesting things that you might not know about the company. Aside from the LINE-X franchise cost, here’s what you need to know about the business.
Started as a Small Family-Owned Company
LINE-X, like most empires, started as a small enterprise. But because of their excellent product and impeccable business strategies, they are now an industry leader. At first, they specialized in chemical manufacturing. As the year progressed, they were able to successfully create a durable spray-on formula.
Presence Worldwide
You do not have to doubt the credibility of LINE-X products. They are known globally and is trusted by several companies from different industries. It doesn’t matter if you have a big industrial project in the Middle East or you need to serve thousands of trucks back in the US. You will surely have the right protective coatings available for these.
Consistently Adding New Products
What’s good about LINE-X is that they never settle. They always want to expand their operations by adding new products to their offerings. That means, as a franchisee, you have more potential to grow your income.
Comprehensive Marketing Support
As mentioned, LINE-X is a well-known company not just in the US, but also in other parts of the globe. That shows the power of their marketing. As a franchisee, you can enjoy the same strategies that the main company use to promote their brand.
Offers Discounts for Veterans
To show their support for those who have served the country, they offer amazing discounts and promos. To date, they are said to offer the highest discounts for veterans. If you are one, you should take advantage of it.
LINE-X Franchise Cost
You may find the estimated LINE-X franchise cost below. It should be around $130,263 to $373,296, depending on the size of your business.
Your Investment
| Name of Fee | Low | High |
|---|---|---|
| Initial Franchise Fee | $10,000 | $30,000 |
| Initial Training Expenses | $1,000 | $2,500 |
| Real Estate | $11,667 | $30,000 |
| Leasehold Improvements | $3,500 | $15,000 |
| Insurance | $450 | $2,000 |
| Utilities | $500 | $1,500 |
| Vehicles | $1,000 | $30,000 |
| Graphics Package (includes Interior and Exterior Signage) | $5,000 | $34,000 |
| Licenses and Permits | $500 | $1,500 |
| Office Equipment and Supplies | $3,150 | $5,000 |
| Initial Inventory of Coating Products | $4,600 | $9,100 |
| Opening Advertising | $2,000 | $3,000 |
| Uniforms | $250 | $500 |
| Equipment Package | $39,797 | $64,680 |
| Additional Equipment | $4,100 | $12,267 |
| Application Booth | $10,000 | $70,000 |
| Shop Tools | $5,000 | $5,000 |
| Inventory of Truck Gear | $2,000 | $6,500 |
| Additional Funds – 3 months | $25,000 | $50,000 |
| ESTIMATED TOTAL | $130,263 | $373,296 |
Other Costs
| 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 $3,500 per month. (Includes 925 pounds per month at approximately $3.43 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 – $.20 per pound of Coating Products purchased from the franchisor, or (ii) 1% to 5% of Gross Volume. |
| Local Advertising | 5% of Gross Volume. |
| Cooperative Advertising | Co-op assessments. |
| 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. |
| Insurance Policies | Amount of unpaid premium. |
| Transfer Fee | $10,000 |
| Renewal Fee | Not applicable. |
| 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. |
For other franchise information, check out other resources here at Franchise How!