Bottom line
- Total investment $127K – $277K including a $60K franchise fee.
- Average unit revenue of $1.0M/year (median $858K).
- Rated STRONG with a risk score of 39/100. SBA loan default rate of 0.0% across 58 loans (below the industry average).
- Auditor disclosed a going-concern note — flagged doubt about the franchisor's ability to continue operations. Verify against the latest FDD.
Item 1 · who you're contracting with
The Franchisor
Yale framework · single-unit ROIC
Returns Analysis
Pulls Item 7 (investment) and Item 19 (revenue) from this brand's FDD into the Yale unlevered-ROIC formula. Override any input to stress-test it against your own assumptions.
The model · Yale framework
What would one LIME PAINTING unit return on the cash you put in?
Unlevered ROIC · per unit
40%
In Yale's "attractive" band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 LIME PAINTING units return on equity?
Equity IRR · 5-yr
49.9%
7.57× MOIC
Year-1 DSCR
1.88×
EBITDA ÷ debt service
Equity required
$805K
on $4.0M purchase
Total debt
$3.2M
SBA $2.0M + senior + seller note
Overview
About
Lime Painting franchisees operate residential and commercial interior/exterior painting services, managing crews, client estimates, project scheduling, and quality control. Day-to-day activities include sales calls, job site supervision, crew management, and customer relationship management in their protected territory.
Item 7 · what it costs
The Vitals
Item 19
Financial Performance
Item 20 · unit dynamics
The Growth Chart
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 7 states with active franchisees
The Territory Map
Derived from franchisee contact records. Shows states with at least one current operator — not where the franchisor is registered to sell new units (that data is re-extracting in a future refresh).
States derived from franchisee phone area codes (Item 20). Approximate — ported numbers may show the original state, not the franchisee's current location.
Government records
SBA Loan Data
Aggregated from SBA 7(a) loan disclosures, public data unique to FranchiseVerdict.
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Lime Painting presents moderate-to-cautious risk: undisclosed profitability metrics, stagnant unit growth, and a royalty structure that may suppress early-stage cash flow despite protected territories and no litigation.
Score breakdown · what drove the 39 / 100 rating
- 01MEDNet income not disclosed in FDD Item 19 — unable to validate $126.7K-$277K investment ROI claims
- 02MINORExtremely slow unit growth (2.5% YoY) suggests market saturation or franchisee satisfaction issues
- 03MINORHigh royalty floor ($500-$3K/month minimum) creates cash flow risk for sub-$1M revenue locations
- 04MINORAverage revenue of $1.006M is modest relative to $126.7K-$277K all-in investment; breakeven timeline unclear
- 05MINORTiered royalty structure incentivizes growth but penalizes early-stage franchisees with 7% on first $2.5M in sales
Severity inferred from the FDD text · not a regulatory classification
FDD Items 5, 6, 12, 17 · continued from Risk & Legal
Contract & Territory Detail
Item 11
Training & Operations
Item 20
Franchisee Contacts
Phone numbers extracted directly from this brand's FDD Item 20. After purchase, you'll also receive a list of validation questions tailored to this brand.
Franchisee contacts
8 numbers
One-time purchase · CSV download · Validation questions included
FDD download
LIME PAINTING · FDD (2025) PDF