When entrepreneur and founder of LIME Painting, Nick Lopez, identified an underserved segment in the commercial and retail painting industry, he realized he was staring down an opportunity to bring high-end services to high-end homes. Lopez, who had started his own painting company in college as a means to support himself financially while earning his undergraduate degree in business, was familiar with the industry. In order to provide painting and contracting services to highly-valued custom properties, Lopez founded LIME Painting in Denver in 2013.
The second-to-none home services brand utilizes an advisor model, an expert team of skilled artisans and premium tools for unparalleled home improvement. Additionally, LIME Painting prides itself on its values-driven approach, wherein the core brand values of “love, integrity, mission and excellence” influence every aspect of the business.
That approach is paying off. Since its founding, LIME Painting has differentiated itself as a luxury, holistic service provider in the high-end market, operating within a $400 billion industry with no national competitors. Within the first four years of launching, LIME Painting generated approximately $5.5 billion with nearly $1.2 million in gross profit.
It is no surprise, then, that as a result of its highly differentiated model, LIME Painting can claim strong financials when it comes to Item 19 of its franchise disclosure document, or FDD.
“Overall, our numbers indicate a high potential for return on investment,” said Lopez. “We have best in class unit economics and a recession-resistant model because our clientele tends to have discretionary income and is committed to maintaining the equity of their greatest asset: their home.”
That investment is reflected in LIME Painting’s financials over time, which show steadily growing gross revenue and gross sales. In 2019, the value for each, respectively, was just over $2 million.
“Our consistent growth shows that the market has accepted the model and that our approach is sufficiently differentiated,” said Lopez. “Clients are adding on more and more of our services because they’re recognizing the value that LIME brings and that validates the model in a local territory.”
Another contributor to Item 19’s strong numbers and continued growth?
“The fact that we offer 15 revenue streams,” says Lopez, referring to the 15 distinct services the brand offers to homeowners. “Being able to deliver that much value to clients leads to average LIME project earnings of approximately $12,000 versus the industry average of $3,000 and only five to eight different services.”
Given these higher-grossing projects, LIME Painting reported a 2018 gross profit of $458,753 at a 6% royalty rate.
“For the same buy-in cost and the lowest royalty fee in the sector, we offer much more aggressive margins than those of competitors,” said Lopez. “Our buy-in is right at the industry average, but then we’re on the lower-end when it comes to royalties. Add double the services that you can offer compared to the industry average and your franchisees are optimally positioned for success.”
LIME Painting is seeking qualified, purpose-driven franchise partners who want to share in the brand’s infectious culture and vision as they prioritize customer service to scale and grow into multiple territories. Start-up costs for a LIME Painting franchise range from $89,550 to $115,275 and include a $45,000 single-unit franchise fee. For more information on available franchise opportunities, visit https://limepaintingfranchise.com/.