Franchise Deep Dive: LIME Painting Franchise Costs, Fees, Profit and Data

LIME Painting aims to set itself apart in the home improvement and painting industry by catering to only high-end and affluent residential and commercial customers. Does it pay off?

By Luca Piacentini1851 Franchise Managing Editor

7:07AM • 04/26/24

LAST UPDATED: March 2024
FRANCHISE WEBSITE: https://limepaintingfranchise.com
NUMBER OF LOCATIONS: 90+
REPORTED COST TO GET IN: $124,700 to $162,375
REPORTED ROI (Item 19): $110,109 (Average Gross Sales Less Total COGS, Total Disclosed Operating Costs and Total Estimated Fees)

LIME Painting is a painting franchise that offers high-quality services for luxury homes and businesses, taking a values-driven approach encapsulated by Love, Integrity, Mission and Excellence (LIME).

How Many LIME Painting Locations Are There?

After discovering his passion for home improvement while owning his first painting company, Nick Lopez founded LIME Painting in 2013 to set the standard of excellence in painting high-end residential and commercial properties. After fine-tuning his business model for five years, Lopez ventured into franchising, aiming to deliver premium interior and exterior painting, coating and other restoration services.

Today, LIME Painting has expanded its footprint to over 90 locations across more than 21 states, with ambitious plans for continued growth across all 50 states. This expansion follows a successful 2023, which saw the addition of 7 new franchisees and 14 new units.

LIME Painting was recently awarded Franchise Business Review's Top Franchises Satisfaction Award. The brand was also recognized in Entrepreneur's 2023 Franchise 500 Ranking, Entrepreneur's Top New and Emerging Franchises for 2023 and ranked #1 in Denver Business Journal's 2023 Fast 50 Awards.

What Is LIME Painting’s Business Model?

LIME Painting franchisees operate a painting business that only targets the top 5% of high-end homes and businesses. This, according to the brand, leads to an average job ticket “three times the industry average.”

LIME Painting operates on a moderately low overhead and boasts a particularly quick ramp-up time of only 30-90 days. Technology is also a key driver of the business model, with the brand’s proprietary tech stack LIMEWare helping franchise owners manage their businesses efficiently.

How Much Can LIME Painting Franchise Owners Make?

The LIME Painting 2022 FDD and Item 19 discloses certain historical performance results generated by the two affiliated businesses and five franchised businesses that were open and operating throughout the 2021 calendar year:

Part 1 – Gross Sales Generated by Each Affiliate Business Over Each Measurement Period and Combined/Total Gross Sales Generated from Combined Operations in Each Calendar Year of Operations

2014

Affiliate Business No. 1: $554,650
Affiliate Business No. 2: N/A (not open)
Total Gross Sales via Combined Operations: $554,650 (1 Business)

2015

Affiliate Business No. 1: $698,806
Affiliate Business No. 2: $408,423
Total Gross Sales via Combined Operations: $1,107,229

2016

Affiliate Business No. 1: $650,461
Affiliate Business No. 2: $1,008,902
Total Gross Sales via Combined Operations: $1,659,364

2017

Affiliate Business No. 1: $1,090,490
Affiliate Business No. 2: $1,077,945
Total Gross Sales via Combined Operations: $2,168,435

2018

Affiliate Business No. 1: $1,067,009
Affiliate Business No. 2: $941,729
Total Gross Sales via Combined Operations: $2,008,738

2019

Affiliate Business No. 1: $642,910
Affiliate Business No. 2: $863,063
Total Gross Sales via Combined Operations: $1,505,972

2020

Affiliate Business No. 1: $684,360
Affiliate Business No. 2: $860,917
Total Gross Sales via Combined Operations: $1,545,277

2021

Affiliate Business No. 1: $733,224
Affiliate Business No. 2: $603,982
Total Gross Sales via Combined Operations: $1,452,286

Part 2 – Total Gross Sales as Well as Total COGS, Total of Certain Operating Expenses, and Total Estimated Fees Incurred in Connection with the Combined Operations of the 2 Affiliate Businesses Over Calendar Year 2021

Combined Operations of 2 Affiliate Businesses

Gross Sales: $1,452,286

Cost of Goods Sold

Materials and Other COGS: $221,976
Total Subcontractor Expense: $551,868
Total COGS: $773,845
Gross Sales Less Total COGS: $678,441

Disclosed Operating Costs

Indirect Labor: $212,709
Insurance: $12,472
Auto and Truck: $5,001
Other Applicable Operating Expenses: $21,859
Total Disclosed Operating Costs: $252,041

Estimated Fees

Estimated Royalty: $101,660
Estimated Digital Marketing Requirement: $36,000
Estimated Local Marketing Requirement: $12,000
Estimated Technology Fees: $10,800

Total Gross Sales Less Total COGS, Total Disclosed Operating Costs, and Total Estimated Fees: $265,940

Part 3 – 2021 Average Gross Sales as Well as Reported COGS, Certain Operating Expenses, and Adjusted Fees Incurred in Connection with the Franchised Locations That Were Actively Open and Operating Throughout the 2021 Calendar Year

Average of 5 Franchised Businesses (2021 Calendar Year)

Gross Sales: $634,231 (100.0%)

Cost of Goods Sold

Materials and Other COGS: $98,704 (15.6%)
Total Subcontractor Expense: $233,207 (36.8%)
Total COGS: $331,911 (52.3%)
Gross Sales Less Total COGS: $302,320 (47.7%)

Disclosed Operating Costs

Indirect Labor: $69,759 (11.0%)
Insurance: $6,268 (1.0%)
Auto and Truck: $8,852 (1.4%)
Other Applicable Operating Expenses: $29,254 (4.6%)
Total Disclosed Operating Costs: $114,133 (18.0%)

Estimated Fees

Required Royalty: $43,278 (6.8%)
Required Digital Marketing Requirement: $18,000 (2.8%)
Required Local Marketing Requirement: $6,000 (0.9%)
Required Technology Fees: $10,800 (1.7%)

Average Gross Sales Less Total COGS, Total Disclosed Operating Costs, and Total Estimated Fees: $110,109 (17.4%)

Part 4 – Charts Detailing Information Regarding Client Project Invoice Amount Amongst the 2 Affiliate Businesses Based on Their Combined Operations in Calendar Year 2021

Average Total Projects Invoiced: 130
Average Client Project Invoice: $11,171
Median Client Project Invoice: $9,689
Lowest Project Invoice Reported: $397
Highest Project Invoice Reported: $57,973
Percentage of Total Projects Less Than $10,000 in Gross Sales: 54%
Percentage of Total Projects Between $10,000 and $20,000: 34%
Percentage of Total Projects Over $20,000: 12%

Part 5 – Charts Detailing Information Regarding Client Project Invoice Amounts and Project Mix by Each Disclosed Franchised Location Over the 2021 Calendar Year

Average of 5 Franchised Businesses

Total Projects Invoiced: 63
Average Client Project Invoice: $10,942
Median Client Project Invoice: $7,998
Lowest Project Invoice Reported: $760
Highest Project Invoice Reported: $64,228
Percentage of Total Projects Less Than $10,000 in Gross Sales: 62.4%
Percentage of Total Projects Between $10,000 and $20,000: 27.6%
Percentage of Total Projects Over $20,000: 6.0%

How Much Does It Cost to Open a LIME Painting Franchise?

LIME Painting franchise costs, based on Item 7 of the company’s 2022 FDD:

Initial Franchise Fee: $60,000
Initial On-Site Training Fee: $7,000
Travel Expenses to Corporate Training: $2,000 to $3,000
Start-Up Package: $1,500 to $3,000
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 Months Following Initial Launch/Opening: $2,700
Initial Marketing Spend: $10,000 to $20,000
Digital Marketing Requirement – 3 Months Following Launch/Opening of Business: $4,500
Licenses and Certifications: $250 to $675
Insurance Premium – First 3 Months of Operation: $3,500 to $5,000
Professional Fees: $2,000 to $3,000
Additional Funds – 3 Months: $15,250 to $35,000
Total Estimated LIME Painting Franchise Costs: $124,700 to $162,375

What Is the Franchise Fee for LIME Painting?

The franchise fee required to open a LIME Painting franchise is $60,000.

Who’s On LIME Painting’s Leadership Team?

What Helpful Articles Can I Read to Learn More About LIME Painting?

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