Franchise Evaluator™: Outdoor Lighting Perspectives

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

Data from Skyquest shows that the global architectural lighting market was worth $7.70 billion in 2022 and is poised to grow to $12.47 billion by 2031, growing at a CAGR of 5.5%.

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 market’s growth is driven by increasing urbanization, rising infrastructural developments, and an emphasis on energy-efficient lighting solutions. Architectural lighting plays an important role in enhancing the aesthetics of both indoor and outdoor spaces and can influence the overall ambiance and mood. The demand for lighting solutions that complement architectural designs will increase as these designs become more innovative. The market is also influenced by a preference for customizable lighting solutions that offer advanced control and automation. Additionally, regulations aimed at reducing energy consumption have put sustainable lighting solutions in the limelight.

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?

OLP uses high-quality lighting and components, including heavy-gauge brass and copper fixtures, advanced LED technology, and commercial-grade stainless steel transformers. All LEDs have a 5-year warranty. Residential, hospitality, and holiday lighting services are at the heart of the business.

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?

OLP invented the category of low-voltage landscape lighting and pioneered the processes and technology used by the entire industry. When it comes to outdoor lighting, OLP is the leading national brand with the most locations, experience, and the largest client base. Competitors in the industry use OLP as a model. Competition may come from other independent businesses, landscape companies and other entities considered “mom and pop” establishments.

We categorize the competitive climate as mid-hight 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?

Electrical installation laws, permitting and regulations, as well as certification and licensing, vary depending on the state and municipality. Franchise owners should be aware of their state’s and local municipality’s specific regulations, requirements, licensing and laws before opening up for business.

We categorize the regulatory climate as high regulation.

How experienced is the franchisor at being a franchisor?

OLP is under the Empower Brands (formerly Lynx Franchising and Outdoor Living Brands) umbrella. The Empower Brands leadership team is made up of entrepreneurs who are passionate about helping franchise owners succeed and have decades of experience in the field. Other brands under the Empower umbrella include FRSTeam, Archadeck Outdoor Living, and Conserva Irrigation.

We categorize the Franchising Experience as Extensive.

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

Scott Zide is the president and CEO of Empower Brands. ​​He was an OLP franchise owner in St. Louis, Missouri, in 2000, and, in 2002, he was hired as a consultant and later became vice president. Tom Welter is the group president of Empower Brands. He brings an extensive background in franchising and operations to the role, previously serving as Regional VP of Operations for Yum! Brands, Senior VP of Operations for 24 Hour Fitness franchises, VP of Franchising for Byrider, COO of Lift Brands, and CEO of Clean Streak Ventures. Rich Young is OLP’s vice president and brand leader. He is responsible for executing new franchisee training, developing and implementing field programs, and more. Scott Sutton is Empower’s CDO. At Empower, the passionate franchise development expert leads initiatives and strategies to help grow the company’s existing brands and add new ones to the portfolio. Throughout his career, Sutton has worked for Threshold Brands, Sunbrook Franchising, and BioLab Franchise Company.

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.

Prior to opening for business, franchise owners are provided with two weeks of training at corporate headquarters in Richmond, Va. OLP also offers franchisees third-party lending options and assists with site selection. Ongoing support and training includes 24/7 access to an Information Technology Support Team; C.O.L.T. training; comprehensive marketing workshops; and in-house bookkeepers.

We categorize the Franchisee Engagement as Highly Engaged.

In what kind of financial shape is the franchisor?

OLP has a robust item 19 that boasts an average gross profit margin of 54%; an average annual sales volume of $899,040; and average revenue totaling $209,711. *From the 2023 Outdoor LIghting Perspectives FDD. Always consult your financial and legal counsel before making any investment decisions. The information presented here does not constitute endorsement or validation, nor an offer to buy a franchise. For information purposes only.

We categorize the Financial Health as Sound.