LINE-X

The trajectory screams caution: from 418 locations in 2023 to just 200 in 2024, a -52% contraction that dwarfs typical franchise fluctuations and points to aggressive system-wide terminations (153 reported). Franchising since 1999 under parent Clearlake Capital, LINE-X charges a $40,000 franchise fee, with royalties at 6% on core bedliner services plus 2% on other upfits, and a 1.5% ad fund—fees that stack up higher on diverse revenue streams. No Item 19 disclosure leaves earnings opaque, forcing reliance on indirect signals like 83 SBA loans averaging $379,065 with a 7.2% default rate, suggesting viable but risky financing for the proprietary spray-on coatings and accessories model.

Litigation clusters around franchisee pushback on non-compete enforcement, post-term obligations, and compliance disputes, flagging operational tensions in this Charlotte, NC-headquartered brand. Only 5 system transfers indicate low resale appeal amid the shrinkage. For investors eyeing vehicle customization for trucks and fleets, the model's training and supplier mandates offer structure, but the contraction and termination volume erode confidence in sustained growth—approach with heavy due diligence on why so many exited.