Franchise Evaluator™: LIME Painting

What population does the brand serve? Is the market broad, niche, or somewhere in-between?

LIME Painting Franchise is part of the $400 Billion Luxury painting, coatings, and surface restoration industry. The current market is saturated with painting franchise opportunities, but LIME does not compete with these concepts at the lower end of the painting market. LIME Painting is the only painting franchise that focuses solely on high-end homes and businesses that are valued within the top 30% of the market. This segment delivers the most value to franchisees and high-end luxury homeowners alike.

We categorize the market size as a large market.

Is the overall industry growing, that is creating new customers who have never used these services before, or mature where most population segments are already using these types of products and services?

The painting industry is undergoing several notable trends. There is an apparent movement toward sustainability, with an increasing emphasis on eco-friendly practices and the use of low-VOC paints. Digital tools are becoming integral, offering benefits such as virtual color matching, online project management, and 3D visualization. Specialized finishes, smart coatings, and a focus on customization also shape the industry, allowing for more personalized and unique solutions. LIME Painting has been meticulously crafted to deliver a consistent and reliable service, ensuring an easy, enjoyable, and refreshing customer experience. Well-executed and aesthetically pleasing job sites serve as excellent sales tools. Complementing this, LIME utilizes state-of-the-art Sales and Project Management Software known as LIMEWare. This advanced technology platform serves as a centralized hub for all aspects of owning and operating a LIME franchise.

We categorize the Industry Trend as a high growth trend.

What drives the purchase of the product or service? Is it a “need-to-buy” or a “want-to-buy”? How are customers drawn to your business?

LIME Painting is the only painting franchise to serve the high-end, luxury paint market, which means LIME franchise owners have virtually no competition outside of independent painting contractors that may say “high-end” but quite often do not deliver. LIME Painting distinguishes itself in the painting industry through a unique and tech-driven strategy, prominently featuring “The Big Four Tech Stack.” Notably, the company achieves an average ticket that is four times higher than the industry average, signaling its ability to cater to the top 30% of home values and emphasizing a commitment to delivering premium services tailored to high-value properties.  LIME Painting’s differentiation extends to its approach to estimating services and proposal building, facilitated directly by the franchisor, streamlining customer interactions and enhancing the quoting process for improved efficiency and accuracy. The company’s leverage of partnerships with national suppliers highlights its dedication to quality and accessibility, providing a competitive edge in material sourcing. LIME Painting’s proprietary sales systems contribute further to its distinctiveness, ensuring a sophisticated and practical approach to client engagement. With robust recruiting support and a streamlined subcontractor model, LIME Painting stands out as a tech-savvy industry leader, consistently delivering exceptional value and service throughout the customer experience.

We categorize the product and service drivers as high drivers.

Are competitors a major factor in operating your business? If so, is competition sparse or saturated? Will it matter to your business?

LIME Painting operates in the $400 Billion Luxury painting, coatings, and surface restoration industry. There is little to no competition from franchised painting and home service concepts that target the top end of the luxury painting market. There could be potential competition from various sources, including other businesses, national chains, and independently owned companies that may offer comparable products or services to the broad customer base. Competition from other franchises operating within the same market segment and serving LIME’s target customers is unlikely. In the realm of high-end luxury painting and contracting, there exists a notable underservice within the market. LIME’s focus is primarily on properties valued in the top third of a given market, reflecting a commitment to delivering excellence in upscale residential and commercial spaces. Finding good quality workers and subcontractors can be difficult, but LIME Painting is a premium brand that works only with high-end property owners. These customers view price in terms of value and not the bottom line. Typically, the consumers LIME works with are looking at an extensive scope of work to achieve a quality outcome, and therefore, they are willing to pay for it. In return, LIME pays its subcontracted crews more than other painting companies in the market, which makes LIME an attractive company to work for.

We categorize the competitive climate as low-mid competitive pressure.

Are the business’s products or services regulated, or do they require licensing? Will you or your employees require special licensing? If so, is the regulatory climate strict or lax? Will this affect recruiting employees?

Governing authorities in most states and local jurisdictions implement a range of laws, rules, regulations, and ordinances. These legal frameworks cover various aspects, including general standards for the construction, design, and maintenance of business premises; regulations concerning customer health, safety, and welfare; standards for employee health and safety; provisions for disabled persons’ accommodations, fire safety, emergency preparedness, and licensing and permit requirements for installation services as a contractor. It is advised that you check with local and state governments for specific requirements for painting contractors in your area. When embarking on an entrepreneurial journey, LIME Painting recognizes and understands the importance of support. Many emerging brands lack a high level of expertise and experience, but at LIME, a robust executive team is in place to facilitate onboarding, training, and support for franchise owners. The team’s collective experience extends to some of the world’s largest brands, accumulating decades of valuable expertise.

We categorize the regulatory climate as low regulation.

How experienced is the franchisor at being a franchisor?

Nick Lopez, Founder & CEO of LIME, brings a wealth of expertise in business marketing, sales, and process creation to the franchising experience. With a professional background steeped in these areas, Nick has cultivated and refined a groundbreaking business model that addresses the underserved high-end paint space, delivering top-notch home improvement services. His commitment to excellence has remained unwavering throughout LIME’s growth.  Despite the company’s growth, Nick remains a hands-on and active founder, maintaining accessibility to both franchise owners and the dedicated support team that comprises LIME.

We categorize the Franchising Experience as Extensive.

What is the tenure, background, and commitment of the franchise’s leadership?

LIME Painting’s leadership team is spearheaded by Johnny Grohol, the Vice President of Operations, who architects the company’s support infrastructure alongside visionary Nick Lopez. Johnny, a construction management expert, builds strong relationships with franchise owners and ensures collaboration with the Franchise Advisory Council. Jim Ward, the Sales Director, leverages his expertise to provide hands-on training to new owners, emphasizing the LIME Way in client and subcontractor interactions. Jade Nguyen, the Director of Finance and Administration, is the glue at LIME, supporting new owners and contributing to the company’s success with her enthusiasm for prosperity. Together, they embody LIME’s commitment to excellence and values, creating a dynamic leadership core.

We categorize the Franchising Leaders as Highly Experienced.

How often and how well does the franchisor engage franchisees? What assistance is provided in starting and operating your business.

Franchisee engagement at LIME Painting is tailored to the roles of Owner/Operators and Qualified Semi-Absentee owners, each contributing uniquely to the business’s success. Owner/Operators actively participate in day-to-day operations without directly engaging in painting or other services. Their tasks encompass a comprehensive range, including completing estimates, booking projects, generating leads, brand building, networking, sales, hiring and managing subcontracted crews, overseeing daily projects, scheduling appointments, interacting with and educating customers, administrative duties, and actively engaging in brand building and local marketing initiatives. On the other hand, Qualified Semi-Absentee owners assume a leadership role by hiring a GM, Salespeople, and a Production Coordinator. Their responsibilities involve ensuring the team follows the LIME Business Growth Blueprint, reviewing data and profit and loss statements proactively, handling administrative duties, and leading efforts in recruiting, training, coaching, and team building. This multi-faceted engagement model allows franchisees to align their involvement with their preferences and expertise while adhering to the successful LIME business model.

We categorize the Franchisee Engagement as Highly Engaged.

In what kind of financial shape is the franchisor?

LIME Painting stands out with robust financial health, offering franchisees unlimited potential for strong returns. In 2022, a corporate territory demonstrated impressive gross sales of $1,597,082, with a net EBITDA of $264,646. The low-cost entry further emphasizes the financial appeal, as franchise owners can commence their business with an investment ranging from $125.7K to $202K. Notably, the initial phase for owner-operators doesn’t require hiring employees, as all projects are efficiently handled by subcontracted crews, significantly minimizing overhead costs. With a home-based business model, franchisees can experience a quick ramp-up, typically within 40-90 days after signing an agreement. For semi-absentee owners, the hiring focus is streamlined to three critical roles: sales, production, and general manager, ensuring efficient operations and financial success.   *for more information see the latest LIME Painting Franchise Disclosure Document

We categorize the Financial Health as Sound.