NiteLites Franchise Cost, Revenue & Review 2026
Data from FDD filing
Analysis by FranchiseVerdict Research · Methodology
NiteLites is a home services franchise designing and installing low-voltage LED landscape and architectural lighting. Franchisees run local operations, managing design, installation, and maintenance accounts.
FranchiseVerdict summary · 2026
A NiteLites franchise requires a total initial investment of $66K – $111K, including a $20K – $43K franchise fee and an ongoing 5.0% royalty[2]. The 2026 FDD does not disclose unit-level revenue (no Item 19). FranchiseVerdict grade: F (Weakest tier), an editorial assessment, not investment advice. Run a live ROI scan →
Data last verified · figures per the 2026 FDD issuance
Overview
- Investment
- $66K – $111K
- 13th pct Home Services
- Avg gross sales
- N/A
- Royalty
- 5.0%
- 5th pct Home Services
- Units
- 13
- 22nd pct Home Services
- SBA charge-off
- N/A
Quick verdict · Home Services · color = vs category peers
Green = favorable by >10% vs Home Services avg · 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 $66K – $111K including a $20K franchise fee, 5.0% ongoing royalty.
- RETURNSFranchisor (NiteLites Franchise Systems, Inc.) total revenue of $281,171.60 in calendar year 2025 is disclosed in Item 7, not from the audited Item 21 statements. The audited financial statements for FYE Dec 31, 2023/2024/2025 are in Exhibit L but are image-only pages with no extractable text, so balance sheet and income statement figures (assets, liabilities, net worth, net income, auditor) could not be captured. Of the franchisor's $281,171.60 total revenue, $214,171.60 (76%) came from required purchases/leases to franchisees and $67,000 from suppliers.
- RISKVerdict F (Weakest tier), verdict score 26/100 (higher is better).
- DATANo 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
Corporate structure & franchisor financials
- Legal entity
- NITELITES FRANCHISE SYSTEMS, INC.
- CEO title
- CEO, President, Treasurer, Director
- Thomas A. Frederick
- Incorporated in
- OH
- HQ
- 6107 Market Avenue, Franklin, Ohio 45005
- Auditor
- Brady Ware & Schoenfeld
- Audited financials
- Franchisor revenue
- $281K
- vs $277K prior year
Overview
About
- CEO
- Thomas A. Frederick
- Headquarters
- OH
- Founded
- 2004
- FDD year
- 2026
- States available
- 5
Can you afford it, and what does the money buy?
Entry cost runs 61% below the typical home services franchise.
Source: FDD 2026 · Items 5–7
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
- Top 40% of category vs category
- Liquid capital req'd
- $10K – $10K
- Top 40% of category vs category
- Franchise fee
- $20K – $43K
- Top 40% of category vs category
- Royalty
- 5.0%
- percentage · 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 | $400 |
| Transfer fee | $5K |
| Renewal fee | $0 |
| Inventory (initial) | $5K – $5K |
| Total fee load | 7.0% of rev |
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
NiteLites did not disclose financial performance in FDD Item 19. The ROIC and return models require Item 19 revenue. Without it all inputs are estimates. You can still run the calculator with your own assumptions by entering an expected revenue figure.
Returns model · single-unit ROIC
What would one NiteLites unit return on the cash you put in?
Unlevered ROIC · per unit
Estimated return on your total franchise investment, before any debt financing.
91%
Above the 30–60% band. Verify revenue is per-unit average
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
Franchisor (NiteLites Franchise Systems, Inc.) total revenue of $281,171.60 in calendar year 2025 is disclosed in Item 7, not from the audited Item 21 statements. The audited financial statements for FYE Dec 31, 2023/2024/2025 are in Exhibit L but are image-only pages with no extractable text, so balance sheet and income statement figures (assets, liabilities, net worth, net income, auditor) could not be captured. Of the franchisor's $281,171.60 total revenue, $214,171.60 (76%) came from required purchases/leases to franchisees and $67,000 from suppliers.
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 7.0% — below the Home Services average of 8.9%.
Disclosure
Franchisor chose not to disclose financial performance representations. You will need to gather unit economics directly from existing franchisees.
Operator retention
System contracting at -30.0% 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 Home Services averages
How NiteLites Compares
Is the system healthy?
Source: FDD 2026 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 13
- Opened
- 0
- Last reporting year
- Closed
- 2
- Terminated
- 1
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 0
- Term expired, not renewed (per Item 20)
- Turnover rate
- 42.9%
- Company-owned
- 6
- Corporate units in the system
- % franchised
- 54%
- vs corporate-owned
- Net growth (3-yr)
- -30.0%
- Net unit change over 3 years
- 3-yr CAGR
- -30.0%
- Compounded over last 3 years
3-year detail · Item 20
- Opened (3yr)
- 0
- Closed (3yr)
- 2
- Terminated (3yr)
- 1
- Non-renewed (3yr)
- 0
- Transfers (3yr)
- 0
- Reacquired (3yr)
- 0
- Franchisor bought back
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 12 · 5 states reported
The Territory Map
FDD Item 12 reports the state count, but the specific list isn't in our current data. The map will appear once we re-extract from the FDD or enough franchisee contacts are available.
5
states with franchisees (per FDD Item 12)
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.
What could kill this investment?
Source: SBA 7(a) FOIA · FDD Items 3, 21
Risk analysis
FranchiseVerdict rating + FDD Items 3, 4, 8, 16, 21
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.
Litigation (Item 3)
NiteLites Franchise Systems, Inc. and NL Manufacturing v. NiteLites, Inc. (2013 CV 84662) - breach of contract suit against former franchisee; summary judgment granted ordering former franchisee to pay $14,276.19 and cease use of marks.
Largest disclosed settlement: $14,276
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Brady Ware & Schoenfeld
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
ⓘ These are the parent company's consolidated financials (the parent guarantees the franchisor), not this brand's standalone results — the figure reflects the whole corporate group, not this brand alone.
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 26 / 100 verdict
- 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
What are you signing up for?
Ongoing fees run about 7.0% 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 | 5 years |
|---|---|
| Renewal term | 5 years |
| Allowed renewalsℹ | 2 |
| Territory type | protected |
| Protected territory | Yes |
| Exclusive territoryℹ | No |
| Territory population | 1,000,000 |
| Online sales rights | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Optional |
| Non-compete (years)ℹ | 2 years |
| Non-compete (miles)ℹ | 50 mi |
| Right of first refusalℹ | Yes |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Mandatory arbitration | No |
| Arbitration location | Cincinnati, Ohio (mediation required before litigation) |
| Jury trial waiver | Yes |
| Governing law | OH |
| Litigation count | 1 |
View Item 3 litigation summary
NiteLites Franchise Systems, Inc. and NL Manufacturing v. NiteLites, Inc. (2013 CV 84662) - breach of contract suit against former franchisee; summary judgment granted ordering former franchisee to pay $14,276.19 and cease use of marks.
Items 10, 11
Training & Operations
- Classroom training
- 15 hrs
- On-the-job training
- 20 hrs
- Training location
- Ft. Myers, FL; Nashville, TN; or Cincinnati, OH
- Ongoing training
- Required
- Time to open
- 3 mo
- From signing to launch
- Franchisor financing
- Offered
- Item 10
- POS system
- QuickBooks Enterprise Solutions
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: QuickBooks Enterprise Solutions
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 Item 19 in the NiteLites 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 NiteLites FDD and qualifies whose outlets they describe.
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 7 franchised units and 6 company-owned units.
Is NiteLites a good franchise to buy?
FranchiseVerdict rates NiteLites as a F-grade franchise with a verdict score of 26 out of 100 (higher is better), 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.