NiteLitesFranchise Cost, Revenue & Review 2026
Data from FDD filing
FranchiseVerdict summary · 2026
A NiteLites franchise requires a total initial investment of $66K – $111K, including a $20K franchise fee and an ongoing 5.0% royalty[2]. The 2026 FDD does not disclose unit-level revenue (no Item 19). Verdict grade: F. Run a live ROI scan →
Data last verified June 21, 2026 · figures per the 2026 FDD issuance
Overview
- Investment
- $66K – $111K
- 13th pct Home Services
- Avg gross sales
- N/A
- 54th pct Home Services
- Royalty
- 5.0%
- 5th pct Home Services
- Units
- 13
- 22nd pct Home Services
- SBA default
- N/A
Quick verdict · Home Services · color = vs category peers
Green = >15% above Home Services avg · No shading = within ±15% · Red = >15% below avg · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Franchised units fell from 10 to 7 over 3 years. Investigate why operators are leaving.
Bottom line
- Total investment $66K – $111K including a $20K franchise fee, 5.0% ongoing royalty.
- No Item 19 financial performance data disclosed. The franchisor chose not to publish revenue figures.
- Verdict F (Bottom Quintile) with a risk score of 100/100.
- No Item 19 financial performance representation. Without franchisor-disclosed revenue data, you'll need to gather unit economics directly from existing franchisees.
Item 1 · who you're contracting with
The Franchisor
- Legal entity
- NITELITES FRANCHISE SYSTEMS, INC.
- Incorporated in
- OH
- HQ
- 6107 Market Avenue, Franklin, Ohio 45005
- Auditor
- Brady Ware & Schoenfeld
- Audited financials
- Franchisor revenue
- $307K
- vs $277K prior year
Overview
About
NiteLites franchisees appear to operate in outdoor/decorative lighting (nighttime illumination products/services). Day-to-day operations likely involve design consultation, installation, maintenance, and customer service for residential or commercial lighting systems. Franchisees would manage local sales, crew scheduling, inventory, and customer relationships within their protected territory.
- CEO
- Thomas A. Frederick
- Headquarters
- OH
- Founded
- 2004
- FDD year
- 2026
- States available
- 5
FDD Item 7 · 2026 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $20K | $20K |
| Working capital (3–6 mo) | $10K | $10K |
| Equipment, build-out, other | $36K | $81K |
| Total initial investment | $66K | $111K |
Source: NiteLites 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
- $66K – $111K
- Better than avg vs category
- Liquid capital req'd
- $10K – $10K
- Better than avg vs category
- Franchise fee
- $15K – $43K
- Better than avg vs category
- Royalty
- 5.0%
- Gross Sales based or Minimum Royalty · typical 6–8%
- Ad fund
- 2.0%
- typical 3–5%
- Total fee load
- 7.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 5.0% of gross sales |
| Marketing / ad fund | 2.0% of gross sales |
| Technology fee | $800 |
| Transfer fee | $5K |
| Renewal fee | $0 |
| Total fee load | 7.0% of rev |
Financial Performance
This franchisor did not disclose financial performance representations in Item 19, or our extractor could not parse them.
vs Home Services averages
How NiteLites Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 13
- Opened
- 0
- Last reporting year
- Closed
- 3
- Turnover rate
- 23.1%
- Company-owned
- 6
- Corporate units in the system
- % franchised
- 54%
- vs corporate-owned
- Net growth (yr3)
- -30.0%
- Net unit change last year
- 3-yr CAGR
- -30.0%
- Compounded over last 3 years
3-year detail · Item 20
- Transfers (3yr)
- 0
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 15 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.
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
No SBA loan data available for this brand.
Risk analysis
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
NiteLites presents HIGH RISK due to collapsing unit count, absence of financial disclosures, going concern uncertainties, and litigation history in a micro-franchise system with minimal scale.
Audited financials (Item 21)
Yes · Brady Ware & Schoenfeld
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Score breakdown · what drove the 100 / 100 rating
- 01MEDSevere unit decline of 30% YoY (from ~18.6 to 13 units) indicates systemic business model or market problems
- 02MEDNo Item 19 financial disclosure (Avg Revenue and Net Income not disclosed) prevents realistic ROI evaluation
- 03HIGHGoing Concern status is False, suggesting potential franchisor financial distress or viability questions
- 04HIGHLitigation history shows material breach judgment against franchisee in 2013; indicates enforcement aggressiveness and/or franchisee failure patterns
- 05MEDMinimum royalty fee structure with undisclosed revenue benchmarks creates opaque cost burden and cash flow risk
- 06MINORSmall system size (13 units) with rapid contraction limits support infrastructure, purchasing power, and brand recognition
- 07MINOR5-year term is relatively short, limiting franchisee ability to recoup $66K-$111K investment plus working capital
Severity inferred from the FDD text · not a regulatory classification
FDD Items 5, 6, 12, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 5 years |
|---|---|
| Renewal term | 5 years |
| Allowed renewalsℹ | 2 |
| Territory type | Population-based |
| Protected territory | Yes |
| Online sales rights | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Optional |
| Non-compete (years)ℹ | 2 years |
| Right of first refusalℹ | Yes |
| Termination notice | 30 days |
| Mandatory arbitration | No |
| Jury trial waiver | Yes |
| Governing law | Ohio |
| Litigation count | 1 |
Items 10, 11
Training & Operations
- Classroom training
- 15 hrs
- On-the-job training
- 20 hrs
- POS system
- QuickBooks Enterprise Solutions
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: QuickBooks Enterprise Solutions
Item 20 · call current owners
Franchisee Contacts
15 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
NiteLites · FDD (2026) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a NiteLites franchise?
The total investment to open a NiteLites franchise ranges from $66K – $111K, with an initial franchise fee of $20K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do NiteLites franchise owners earn?
NiteLites does not disclose average franchise owner earnings in their FDD Item 19. Not all franchisors are required to make financial performance representations. We recommend asking existing franchisees directly about their financial experience.
What is NiteLites's franchise failure rate?
SBA 7(a) loan charge-off data is not available for NiteLites (fewer than 10 loans on file). Charge-off rates are one way to gauge franchise risk, but not all franchise loans go through the SBA program. We recommend reviewing turnover and closure data in the FDD and speaking with current franchisees.
How many NiteLites franchise locations are there?
As of their most recent FDD filing, NiteLites has 13 total units in the United States, including 10 franchised units and 6 company-owned units.
Is NiteLites a good franchise to buy?
FranchiseVerdict rates NiteLites as a F-grade franchise with a risk score of 100 out of 100, based on our analysis of investment costs, revenue data, SBA loan performance, and growth trends. 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.