LINE-X Franchise Complaints
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
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.
Line-X Spray-on Lining is 100% SCAM. I’ve purchased my Line-X Dealership from a previous shop that did this Spray-on Lining on truck beds. It was cheap at $20,000.00 as opposed to over$100,000.00 to buy a new start up from Line-X. Line-X required me to train at their location to be “allowed” on their dealer locator. My 3 applicators & I paid for travel & took their “specialized” training. I already knew everything because I own several Graco Equipment including “their” EXP2 gun which is just another Graco I owned. We knew more than them! They wouldn’t reimburse us. Their minimum orders of are absurd. Reviews of spray-on lining Complaints are private since their franchise agreement protects them only. Spray-Lining Complaints by Line-X dealers who spoke privately reveal unfair, unethical practices with several lawsuits that are also mostly private. I built up my name as the Spray-on Lining, Line-X dealer in my zone to a fair profit without any support from this most professional of “legal” scams. At over $1,200,000.00 in revenue, after 3 years they opened another Line-X dealer in my “protected” zone. According to the fine print if a spray lining line-x dealership doesn’t buy certain monthly volume which is totally irrational, $250,000.00 per month, they have rights to open a competing shop in your zone. Why didn’t they do this to the failing guy before? Obvious: He was failing! Therefor if you own this franchise & do poorly that’s OK. But if you break your back & build demand in your zone well, they’ll sell your demand you earned off to another competing shop. I sued Line-X, I won my case. I signed an agreement stating I’d remain silent. Now after I’ve been paid a large sum of money, I’ll state here publicly without fear that the biggest Spray-on Lining Complaints are by muzzled linex owners. The worst Spray-on Lining Scam is by linex owners. The most sickening Spray-Lining Reviews are in private, amongst defrauded Line-X dealers who may earn a revenue because of that big, advertised name but believe they’re helpless by signed agreement. FYI: Your not powerless! Here’s how you fix your problem: Group up Line-X dealers! There’s power in numbers! Create a Class Action Suit now before this information gets buried or before the Line-X owners sell off & run, as the previous owner, Claudio Burton, now Bullet Liners did. You can also contact me, Jed Upowi- I am a Spray-Lining (the actual manufacturer) consultant… or email [redacted]
That’s all very “hear-say” interesting. Research “Spray-Lining” and “LINE-X” on RIP-OFF REPORT.COM and I think you will have to take these ^^reviews with a shaker of salt. Also, check out this site for more of Jed’s (Jules Lupowitz’s) frauds. http://texliner.info/Darrens_Story.html
My husband and I have owned 2 LINE-X franchises for 21 years. We have been successful & can’t say enough about LINE-X Corporate. If we ever have a problem, we pick up the phone. If I really had a problem, my Regional Manager would be at my shop ASAP. Their support is awesome. It is truly the best product out there & we wouldn’t ever use another product or change companies. It is a business and you have to work it! Like anything. I have known people that have left LINE-X for other companies & they are really disappointed. They realized just how superior the LINE-X company & product are. I agree with Dale King. Take “Jed’s” comments with a grain of salt. With everything, there will be haters & people that find a reason to sue.
The LINE-X Franchise is a MESS. They are attempting a value theft from their established franchisees by switching from a chemical profit model (their model since the 1990’s) to a royalty model. In doing so, they refuse to recognize the unfairness of this move and are just plowing forward despite franchisee protests and associations formed. In addition, when their chemical ordering/processing systems went haywire, they refused to offer an honest explanation and instead used some concocted corporate line. This has caused so many franchisee problems that many were forced to reschedule their own local customers due to LINE-X’s gross incompetence.
Franchisee lies and deceit. Check. Customers? Here’s their most egregious lie: For a period during 2021 (approximately 7-8 months), they had no LINE-X branded spray-on chemical to offer their franchisees. As a result, many customers during this period had their bedliners sprayed with non-LINE-X chemical. Did they bother to disclose this fact to the customers? Not according to any of the customer documents that franchisees offered to customers.
Bottom Line: Stay far away from buying a franchise with this company at this point and time.