FranchiseVerdict
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FV-01506·MODERATEExcellent86

Line-X

Automotive - Repair & ServiceFranchising since 1999Website
Investment
$402K – $1.0M
83rd pct Repair & Serv…
Avg revenue
54th pct Repair & Serv…
Royalty
6.0%
17th pct Repair & Serv…
Units
142
69th pct Repair & Serv…
SBA default
0.0%
vs <3% typical

Bottom line

  • Total investment $402K – $1.0M including a $50K franchise fee, 6.0% ongoing royalty.
  • No Item 19 financial performance data disclosed — the franchisor chose not to publish revenue figures.
  • Rated MODERATE with a risk score of 64/100. SBA loan default rate of 0.0% across 208 loans (below the industry average).
  • 22 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

Legal entity
LINE-X LLC
Parent company
LINE-X Holdings, LLC
Incorporated in
Delaware
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

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 LINE-X unit return on the cash you put in?

Revenue · per unit, per year
$
Item 19 not disclosed — typing your own estimate
Franchisor take · royalty + ad fund
Royaltytyp 68%
%
Ad fundtyp 35%
%
Operating costs · category default: automotive
COGS
%
Labor
%
Rent / occupancy
%
Other operating
%
Total invested capital · what you actually put in
Initial investment
$
FDD Item 7: $402K–$1.0M
Working capital
$
FDD reports $50K–$75K

Unlevered ROIC · per unit

17%

Below typical band (30–60%)

0%30–60% Yale band80%

Store EBITDA · annual
$131K
EBITDA margin
17.5%
Total invested
$765K
Payback
70 mo
Unit-level only. A multi-unit portfolio gives up roughly 5–15% of this to shared services (corporate G&A) before reaching the ~10-unit break-even Yale describes.

Overview

About

LINE-X franchisees operate spray-on bedliner and vehicle upfit service centers, applying protective coatings to truck beds and customizing vehicles with accessories. Daily operations involve equipment maintenance, technician scheduling, customer intake, and in-shop application services. Revenue is tied to service volume and pricing power in local markets.

CEO
James D. Scott
Founded
2012
FDD year
2026
States available
39

Item 7 · what it costs

The Vitals

Total investment
$402K – $1.0M
All-in to open one unit
Liquid capital
$50K – $75K
Cash you must have on hand
Franchise fee
$50K
Royalty
6.0%
Gross Revenues · typical 6–8%
Ad fund
1.5%
typical 3–5%
Total fee load
7.5%
vs 9–13% typical

Item 19

Financial Performance

This franchisor did not disclose financial performance representations in Item 19, or our extractor could not parse them.

Item 20 · unit dynamics

The Growth Chart

Total units
142
Opened
3
Last reporting year
Closed
49
Turnover rate
34.5%
Company-owned
0
Corporate units in the system
% franchised
100%
vs corporate-owned
Net growth (yr3)
-21.1%
Net unit change last year
3-yr CAGR
-66.0%
Compounded over last 3 years
2024
142-38
Franchised units
2025
180
Franchised units
2026
418
Franchised units

Year-over-year franchised unit counts and net change. Source: FDD Item 20.

Item 20 · 29 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).

AK
ME
VT
NH
MA
RI
CT
NY
NJ
PA
DE
MD
DC
WA
OR
CA
NV
ID
MT
WY
UT
CO
AZ
NM
ND
SD
NE
KS
OK
TX
MN
IA
MO
AR
LA
WI
IL
MS
TN
MI
IN
KY
AL
OH
WV
GA
VA
NC
SC
FL
HI
Registered · 29 states
Not registered

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.

Total loans
208
Loan volume
Avg loan
Default rate
0.0%
vs <3% typical · system-wide
5-yr default

FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17

Risk & Legal

64
Risk · 0-100
MODERATE64 / 100

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.

Score breakdown · what drove the 64 / 100 rating

  1. 01MEDUnit count declined 21.1% YoY (142 units) indicating system contraction and potential franchisee struggles
  2. 02HIGH18 pending litigation actions primarily over non-compete disputes and 2024 system conversion suggests franchisor-franchisee conflict and operational disruption
  3. 03MINORNo average revenue or net income disclosure (Item 19) prevents assessment of unit profitability and ROI
  4. 04MINORHigh initial investment ($401K-$1M) combined with declining unit count increases financial risk for new entrants
  5. 05MINOR2024 conversion to royalty-based model appears contentious—multiple lawsuits filed; unclear if new model sustainable
  6. 06MINORWashington state consent order indicates regulatory scrutiny and past compliance issues
  7. 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

FDD Items 5, 6, 12, 17 · continued from Risk & Legal

Contract & Territory Detail

Territory
Map or identifiers (zip codes, coordinates, street addresses, or area codes)
Protected territory
Yes
Initial term
10 years
Renewal term
10 years
Online sales rights
Restricted
Franchisor can compete
Yes
Hire a manager?
Allowed
Litigation count
22
Right of first refusal
Yes
Franchisor can buy back on resale
Mandatory arbitration
Yes
Jury trial waiver
Yes
Non-compete
1 yrs
Post-termination restriction
Owner-operator
Required
Governing law
North Carolina

Item 11

Training & Operations

Classroom training
64 hrs
On-the-job training
66 hrs
POS system
LINE-X Growth Performance System
Operating tech stack

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

96 numbers

Locked
(808) 961-••••
HI
(770) 995-••••
GA
(631) 422-••••
NY

One-time purchase · CSV download · Validation questions included

FDD download

LINE-X · FDD (2026) PDF

Single-page checkout · instant download · CSV export of contacts available separately above