Line-X Franchise Cost, Revenue & Review 2026
- Investment
- $402K – $1.0M
- Disclosed sales
- not disclosed
- SBA charge-off
- 13.9%
- on 204 loans
Data from FDD filing + SBA 7(a) records
Analysis by FranchiseVerdict Research · Methodology
LINE-X is an automotive franchise applying spray-on truck-bed liners and protective coatings, plus truck accessories and upfits. Franchisees run a service center handling coating application, accessory installs, and customer sales.
FranchiseVerdict summary · 2026
A LINE-X franchise requires a total initial investment of $402K – $1.0M, including a $50K franchise fee and an ongoing 6.0% royalty[2]. This franchisor makes no financial performance representation in Item 19 of its FDD. Item 19 is voluntary under the FTC Franchise Rule, and this filing states that it makes none, so no revenue or earnings figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that. SBA 7(a) loans show a 13.9% charge-off rate across 204 loans[1]. FranchiseVerdict grade: F (Weakest tier), an editorial assessment, not investment advice. Run a live ROI scan →
Sources, dates and evidence
FDD issued: · Data extracted: · Last cited check: · Staleness risk: low - issued within the last 12 months
Evidence: strong✓ Investment (Item 7)✓ Item 19 status✓ Units and owners (Item 20)✓ SBA loan coverage✓ Litigation (Item 3)✓ Financial statements (Item 21)✓ Franchisor identityhow this is scored5 of 5 headline figures on this page cite a page of the filing.
Overview
- Investment
- $402K – $1.0M
- 44th pct Automotive
- Avg gross sales
- N/A
- Royalty
- 6.0%
- 15th pct Automotive
- Units
- 142
- 35th pct Automotive
- SBA charge-off
- 13.9%
- % of SBA 7(a) loans not repaid · median varies by category
Quick verdict · Automotive · color = vs category peers
Green = favorable by >10% vs Automotive median · No shading = within ±10% · Red = unfavorable by >10% · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Bottom line
- COSTTotal investment $402K – $1.0M including a $50K franchise fee, 6.0% ongoing royalty.
- RETURNSThis franchisor makes no financial performance representation in Item 19 of its FDD. Item 19 is voluntary under the FTC Franchise Rule, and this filing states that it makes none, so no revenue or earnings figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that.
- RISKVerdict F (Weakest tier), verdict score 23/100 (higher is better). SBA loan charge-off rate of 13.9% across 204 loans (above the 16% franchise average, based on all SBA 7(a) franchise lending, 2010–2025).
- GROWTHNegative: net -38 franchised outlets in the latest year (3 opened, 49 closed); 31 signed but not yet open (Item 20).
- LEGAL23 litigation matters disclosed in Item 3, higher than typical. Review the summary for patterns (franchisor-initiated vs. franchisee-initiated).
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- LINE-X LLC
- Parent company
- LINE-X Holdings, LLC
- FDD Item 1, page 9 of the 2026 FDD
- Ultimate parent
- Clearlake Capital Group, L.P.
- FDD Item 1, page 9 of the 2026 FDD
- Predecessor
- LINE-X Franchising LLC
- Prior franchisor entity
- CEO title
- Manager and Chief Executive Officer
- James D. Scott
- Incorporated in
- DE
- HQ
- 4001 Yancey Road, Suite C-200, Charlotte, North Carolina 28217
- Auditor
- Grant Thornton LLP
- Audited financials
- Franchisor revenue
- $57.5M
- vs $37.1M prior year
Independent franchisee associations
- Franchise Advisory Council (FAC)
Franchisee-led councils or alliances disclosed in Item 20. Indicates operator voice.
Overview
About
- CEO
- James D. Scott
- Headquarters
- NC
- Founded
- 2012
- FDD year
- 2026
- States available
- 39
Can you afford it, and what does the money buy?
Entry cost runs 91% above the typical automotive franchise.
Source: FDD 2026 · Items 5–7
FDD Item 7 · 2026 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $50K | $50K |
| Working capital (3–6 mo) | $50K | $75K |
| Equipment, build-out, other | $302K | $878K |
| Total initial investment | $402K | $1.0M |
Source: LINE-X 2026 FDD, Items 5 and 7[2]. “Equipment, build-out, other” is computed as total minus disclosed line items above.
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $402K – $1.0M
- Middle of category vs category
- Liquid capital req'd
- $50K – $75K
- Top 40% of category vs category
- Franchise fee
- $50K – $50K
- Middle of category vs category
- Royalty
- 6.0%
- Tiered by sales volume · typical 6–8%
- Ad fund
- 1.5%
- typical 3–5%
- Total fee load
- 7.5%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 6.0% of gross sales |
| Marketing / ad fund | 1.5% |
| Technology fee | $600 |
| Training fee | $8K |
| Transfer fee | $10K |
| Renewal fee | $5K |
| Inventory (initial) | $4K – $4K |
| Total fee load | 7.5% of rev |
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
LINE-X makes no financial performance representation in Item 19 of its FDD - a voluntary item under the FTC Franchise Rule - so no unit revenue figures are disclosed. The return models need a revenue figure to start from, and the operating costs that turn gross sales into a profit are in no FDD. Enter your own and the calculator runs on your assumptions — nothing here is modelled until you do.
Returns model · single-unit ROIC
What would one LINE-X unit return on the cash you put in?
Illustrative category typicals — not sourced to any filing, survey or sample. Replace them with figures from franchisee validation calls before you rely on the output.
Unlevered ROIC · per unit
Your modelled return on total invested capital, before any debt financing.
—
An FDD discloses gross sales, not profit. We hold no sourced figure for annual revenue, COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
These models are for research and scenario planning only. Not investment advice. Actual results depend on your specific location, management, and market conditions. Consult a franchise attorney and accountant before signing any franchise agreement.
Item 19 · Source: 2026 FDD
Financial Performance
No financial performance representation
This franchisor makes no financial performance representation in Item 19 of its FDD. Item 19 is voluntary under the FTC Franchise Rule, and this filing states that it makes none, so no revenue or earnings figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that.
Item 20 of the FDD lists current and former franchisees; asking them directly is the standard way to fill this gap.
Operator outlook
What the numbers say
Data-driven interpretation of this brand's financial disclosures, fee structure, and system trajectory.
Fee burden
Total ongoing fee load of 7.5% (near the Automotive median).
Disclosure
This franchisor makes no financial performance representation in Item 19 of its FDD. Item 19 is voluntary under the FTC Franchise Rule, and this filing states that it makes none, so no revenue or earnings figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that. Item 20 of the FDD lists current and former franchisees; asking them directly is the standard way to fill this gap.
Operator retention
System contracting at -66.0% CAGR over 3 years. Investigate whether closures are franchisor-driven consolidation or franchisee exits.
Source: FDD Item 19 financial performance representations and publicly filed FDD data. Past performance is not indicative of future results. Verify all figures with the franchisor and current franchisees before making any investment decision.
vs Automotive medians
How Line-X Compares
Category median of published Automotive brands that report the figure; the middle half spans the 25th to 75th percentile and n counts the brands behind it. Medians are used because a few very large systems pull an average far from the typical brand. Revenue is disclosed gross sales, not profit.
Is the system healthy?
Source: FDD 2026 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 142
- Opened
- 3
- Last reporting year
- Closed
- 49
- Terminated
- 0
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 12
- Term expired, not renewed (per Item 20)
- Turnover rate
- 34.5%
- Company-owned
- 0
- Corporate units in the system
- % franchised
- 100%
- vs corporate-owned
- Net growth (3-yr)
- -66.0%
- Net unit change over 3 years
- 3-yr CAGR
- -66.0%
- Compounded over last 3 years
Last fiscal year · Item 20 exits and transfers
- Terminated
- 0
- Not renewed
- 12
- Transferred
- 4
- Reacquired
- 0
- Franchisor bought back
- Signed, not yet open
- 31
- 0.22 per open outlet · Item 20 Table 5
- Projected new
- 0
- Franchisor's next-year forecast
- Transfer rate
- 1.0%
- Owners selling to other franchisees
- Termination rate
- 41.4%
- Franchisor-initiated terminations
- Ceased ops
- 11.7%
- Units that stopped operating
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 38 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 contact records (FDD Item 20). Shows states with at least one current operator on file. Full state registration data (Item 12) will appear on a future FDD refresh.
Where the owners are · Item 20 owner list
138 current owners across 38 states.
- CA 18
- FL 12
- TX 9
- SC 7
- GA 6
- NY 6
- OH 6
- AL 5
- AZ 5
- WI 5
- ME 4
- PA 4
- +26 more states
Counts only, from the list the franchisor prints in Item 20. Names and phone numbers are for your own due diligence and are not shown here.
A system losing more than 10% of its units year-over-year is a red flag. Check whether closures are concentrated in specific regions.
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
- Total loans
- 204
- Loan volume
- $47.9M
- Median loan
- $100K
- 50th percentile
- Charge-off rate
- 13.9%
- on 204 loans · rates vary by category · see methodology
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- 85.6%
- 5-yr charge-off
- 28.6%
- Loans approved 2021+
- Active lenders
- 89
- Defaults
- 19
- Typical loan rate
- 6.4%
- avg rate to borrowers
- Franchised industry avg
- 17.8%
- brand beats franchise avg ↓
- Jobs supported
- 647
- 1.7 per loan
- Lender concentration
- 8%
- top lender's share
Borrower mix: 47% went to startups / new businesses, 53% to established operators
Franchise vs independent — in automotive parts and accessories stores, franchised businesses charge off at 17.8% vs 19.5% for independents — franchising is associated with 9% lower SBA default risk in this category.
Vintage analysis
Line-X charge-off rate by loan vintage
Top lenders financing Line-X franchisees
Showing 3 of 89 lenders. The full breakdown — every lender, state distribution, interest rates & risk ratings — is in the SBA Lending Report below.
Explore lender portfolios on Bank Reports or regional data on State Reports.
Lender network · 7(a) + 504
SBA Lending Report
Full lending analysis for Line-X from SBA 7(a) FOIA data.
- Principal loss rate
- 6.6%
- Avg SBA guarantee
- 70%
- Avg interest rate
- 6.37%
- Avg chargeoff amount
- $134K
- Lender concentration
- 8.4%
- Job velocity
- 1.7 per $100K
- NAICS benchmark
- 14.6%
- NAICS 441310
- Jobs supported
- 647
Top SBA lendersTop lender holds 8% of loans
| # | Lender | Loans | Volume | Default % |
|---|---|---|---|---|
| 1 | The Huntington National Bank | 14 | $2.5M | 18.2% |
| 2 | Popular Bank | 9 | $810K | 33.3% |
| 3 | Wells Fargo Bank National Association | 5 | $1.9M | 25.0% |
| 4 | JPMorgan Chase Bank, National Association | 5 | $404K | 20.0% |
| 5 | PNC Bank, National Association | 5 | $1.6M | 0.0% |
| 6 | Atlantic Union Bank | 4 | $244K | 0.0% |
| 7 | First Interstate Bank | 4 | $655K | 25.0% |
| 8 | Fulton Bank, National Association | 3 | $647K | 33.3% |
| 9 | United Fidelity Bank, FSB | 3 | $400K | 33.3% |
| 10 | Community West Bank | 3 | $587K | 66.7% |
Geographic failure vector
| State | Loans | Defaults | Rate |
|---|---|---|---|
| TXTexas | 18 | 6 | 60.0% |
| FLFlorida | 16 | 2 | 18.2% |
| OHOhio | 13 | 0 | 0.0% |
| CACalifornia | 9 | 2 | 28.6% |
| WAWashington | 9 | 1 | 11.1% |
| MIMichigan | 7 | 2 | 33.3% |
| INIndiana | 6 | 0 | 0.0% |
| KYKentucky | 6 | 0 | 0.0% |
| MDMaryland | 6 | 0 | 0.0% |
| COColorado | 5 | 1 | 33.3% |
SBA 7(a) lending trend
Borrower profile
Source: SBA 7(a) + 504 FOIA loan-level data, matched by FranchiseVerdict
What could kill this investment?
SBA loans charge off at 13.9% — 13% below the 16.0% national norm, i.e. lower lender-observed risk.
Source: SBA 7(a) FOIA · FDD Items 3, 21
Risk analysis
FranchiseVerdict rating + FDD Items 3, 4, 8, 16, 21
Risk & Legal
LINE-X presents HIGH RISK due to significant unit decline, widespread litigation tied to recent business model conversion, absent profitability data, and franchisor-franchisee discord suggesting systemic operational or financial stress.
Litigation (Item 3)
Subject: the franchisor is a named party (defendant).
Extensive litigation primarily related to System Conversion from commission-based to royalty-based model; most cases involve non-compete enforceability disputes from franchisees who did not join the new system; majority have reached settlements in principle
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Grant Thornton LLP
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Supplier relationship · Items 8 & 16
- Franchisor sells you products: Yes
- Kickbacks from required suppliers: Yes
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
- Can negotiate own supplier terms: No
Score breakdown · what drove the 23 / 100 verdict
- 01MEDUnit count declined 21.1% YoY (142 units) indicating system contraction and potential franchisee struggles
- 02HIGH18 pending litigation actions primarily over non-compete disputes and 2024 system conversion suggests franchisor-franchisee conflict and operational disruption
- 03MINORNo average revenue or net income disclosure (Item 19) prevents assessment of unit profitability and ROI
- 04MINORHigh initial investment ($401K-$1M) combined with declining unit count increases financial risk for new entrants
- 05MINOR2024 conversion to royalty-based model appears contentious—multiple lawsuits filed; unclear if new model sustainable
- 06MINORWashington state consent order indicates regulatory scrutiny and past compliance issues
- 07MINOR6% royalty on bedliner services (primary offering) reduces net margins in already-thin service businesses
Severity inferred from the FDD text · not a regulatory classification
What are you signing up for?
Ongoing fees run about 7.5% of sales (royalty + ad fund), before rent and labor.
Source: FDD 2026 · Items 11, 12, 17
FDD Items 12, 15, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 10 years |
|---|---|
| Renewal term | 10 years |
| Allowed renewalsℹ | 1 |
| Territory type | Exclusive territory |
| Protected territory | Yes |
| Exclusive territoryℹ | Yes |
| Online sales rightsℹ | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Required |
| Non-compete (years)ℹ | 1 year |
| Non-compete (miles)ℹ | 5 mi |
| Right of first refusalℹ | Yes |
| Transfer requires consent | Yes |
| Termination notice | 10 days |
| Termination groundsℹ | 1 |
| Curable defaultsℹ | 8 |
| Mandatory arbitration | Yes |
| Arbitration location | Charlotte, North Carolina (county where franchisor headquarters is located) |
| Jury trial waiver | Yes |
| Governing law | NC |
| Litigation count | 23 |
View Item 3 litigation summary
Extensive litigation primarily related to System Conversion from commission-based to royalty-based model; most cases involve non-compete enforceability disputes from franchisees who did not join the new system; majority have reached settlements in principle
Items 10, 11
Training & Operations
- Classroom training
- 64 hrs
- On-the-job training
- 66 hrs
- Training location
- Charlotte, North Carolina (Franchise Support Center) and Lebanon, Tennessee (Training Facility); on-site at franchisee location
- Ongoing training
- Required
- Time to open
- 7 mo
- From signing to launch
- Site selection
- franchisee with franchisor approval
- Franchisor financing
- Not offered
- Item 10
- POS system
- LINE-X POS System
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: LINE-X POS System
Item 20 · call current owners
Franchisee Contacts
138 owners to call
Name · phone · city · state. Extracted from FDD Item 20
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a LINE-X franchise?
The total investment to open a LINE-X franchise ranges from $402K – $1.0M, with an initial franchise fee of $50K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do LINE-X franchise owners earn?
LINE-X makes no financial performance representation in Item 19 of its FDD - a voluntary item under the FTC Franchise Rule - so no unit revenue figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that. Item 20 of the FDD lists current and former franchisees; asking them directly is the standard way to fill this gap.
Who owns LINE-X?
LINE-X is franchised by LINE-X LLC. Its parent company is LINE-X Holdings, LLC. The ultimate parent named in the FDD is Clearlake Capital Group, L.P.. Source: FDD Item 1, 2026 filing.
What is Item 19 in the LINE-X FDD?
The FDD section where a franchisor may disclose financial performance of its outlets. Disclosure is optional and formats vary; figures are typically gross sales, which is revenue before expenses, not profit. FranchiseVerdict extracts these figures directly from the LINE-X FDD and qualifies whose outlets they describe.
What is LINE-X's franchise failure rate?
Based on SBA 7(a) loan data, LINE-X has a charge-off rate of 13.9% across 204 loans, meaning 13.9% of franchise loans were charged off. Charge-off rates are one proxy for franchise risk, though they do not capture all closures. This data comes from FOIA-sourced SBA lending records.
How many LINE-X franchise locations are there?
As of their most recent FDD filing, LINE-X has 142 total units in the United States, including 142 franchised units and 0 company-owned units. 3 new units were opened in the latest reporting year.
Is LINE-X a good franchise to buy?
FranchiseVerdict rates LINE-X as a F-grade franchise with a verdict score of 23 out of 100 (higher is better). The grade is a deterministic score built from six weighted dimensions — financial health, unit economics, unit growth, scale, legal, and transparency — then calibrated against SBA loan charge-off rates and FDD age. Transparency is one of the six, so a filing that discloses less scores lower on that dimension than one that discloses more. Our rating is based solely on publicly available FDD and government data; we recommend speaking with current franchisees before making any investment decision. This is not investment advice.
Data sourced from public FDD filings and SBA 7(a) FOIA records. Not financial advice.
For franchisors
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Data extracted from public FDD filings and SBA 7(a) loan disclosures (FOIA). This information is provided for research purposes only and does not constitute financial, legal, or investment advice. Verify all figures with the franchisor's current Franchise Disclosure Document before making any investment decision.