LINE-X Franchise Complaints
July 11, 2012
The Line-X franchise has a relatively high SBA loan default rate of 20%
Are you familiar with the Line-X franchise opportunity? Please share a comment below.
That means that Line-X franchise owners, some of whom may have collateralized their franchise loan with their house or other personal assets, were unable to repay their loans 20% of the time despite having a very serious incentive to do so.
The Line-X Franchise has a failure rate of 20% for SBA-backed franchise loans
Another red flag is the fact that Entrepreneur data indicates that Line-X franchises have been closing and the Line-X network is shrinking at a concerning rate.
In 2008, there were 460 Line-X franchises in the U.S.. By 2012, that number had shrunk to 385, a decline of 75 franchises or 16% of the total number of operational U.S. Line-X franchises.
Are you familiar with the Line-X franchise opportunity?
What do you think accounts for the SBA loan failure rate of Line-X franchise owners?
What steps should Line-X be taking to stop further franchise failures?
Please share a comment, opinion or insight below.
ARE YOU A LINE-X FRANCHISE OWNER OR FORMER FRANCHISEE? ARE YOU FAMILIAR WITH THE LINE-X FRANCHISE OPPORTUNITY? PLEASE SHARE A COMMENT BELOW.
Tags: Line-X , Line-X franchise, Line-X complaints, coating franchise, automotive franchise, franchise, franchise failure rate, auto franchise, worst franchise, sba failure rates, SBA franchise loans, franchise information, unhappy franchisee
Comments
One Response to “LINE-X Franchise Complaints”
The Line-X franchise having a high SBA default rate dated 7/11/12
Line-X was heavily tied to spray on bedliners for trucks. In 2008 truck sales fell 2.2 million units and another 2 million in 2009. While the market rebounded somewhat in 2011, the numbers are still 1-2 million less than at their peak from 1999-2007. Also there was a shift during that time towards SUV’s from pickup trucks which equated to fewer “sprayable” beds not reflected in the numbers above. In the good times, a Line-X franchise did little more than talk to a few auto dealers and put out the open sign. Most had backlogs of 1-2 weeks.
In difficult times everyone needs to reinvent themselves. Owning a business is not a hobby. Business affairs should always be seperated from personal affairs. Some also chose to wait for the customer to come to them doing little or no marketing.
If you own a Line-X franchise or are considering one don’t think that spraying truck beds with a Line-X sign out front is your business plan. Line-X has a strong brand. Their products are versitle. You should have a fixed location as well as a mobile unit. You should also consider having a full time commissioned sales person looking for business. Our company has sprayed Christmas decorations and floats, lawn furniture, pottery, docks, wood products, furniture and displays for trade shows, buildings and railings, ponds, etc.
When you look at the default numbers, they are no greater that and other business affected by declining truck sales and their owners siphoning more money from the business than they should have.
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