Outdoor Lighting Perspectives Franchise
Audited FinancialsRisk Score
Pending analysis
Investment Range
$179,000 - $222,200
Franchise Fee
$29,750
Min Cash Required
$20,000
Total US Locations
135
Business Summary
Outdoor Lighting Perspectives Franchisor, LLC operates an Outdoor Lighting Business that offers outdoor lighting design, installation services, and sales of lighting and automated lighting control equipment. The business also provides seasonal, holiday, and event lighting sales and installation services to both residential and commercial customers. Outdoor Lighting Perspectives aims to provide high standards of service and quality products through a uniform system.
Corporate History
Outdoor Lighting Perspectives Franchisor, LLC was formed as a Delaware limited liability company on August 31, 2021. The company acquired the franchise assets for the Outdoor Lighting Perspectives system on September 9, 2021, from its predecessors. One predecessor, Outdoor Lighting Perspectives Franchising, Inc. (OLPFI), had been the franchisor for the system in the United States since October 2004. The other predecessor, Outdoor Lighting Perspectives International, Inc. (OLPII), franchised the system outside the United States from July 2005. The current franchisor is a wholly-owned subsidiary of Outdoor Living Brands Holdco, LLC, which is part of Empower Brands.
Financial Overview
Investment Range
$179,000 - $222,200
Franchise Fee (Low)
$29,750
Franchise Fee (High)
$80,729
Minimum Cash Required
$20,000
Royalty %
7%
Marketing %
1.5%
Equipment Costs (Low)
$51,000
Equipment Costs (High)
$58,200
Working Capital
$20,000
Audited Financials
Yes
Offers Financing
Yes
Audit Opinion
Unqualified opinion
Financial Health Notes
Outdoor Living Brands Holdco, LLC, the parent company and guarantor of Outdoor Lighting Perspectives Franchisor, LLC, appears financially healthy. Its consolidated financial statements show increasing cash reserves, with cash growing from $1,492,295 in 2022 to $2,941,232 in 2024. Total current assets have also risen significantly, from $9,655,997 in 2022 to $19,459,852 in 2024, while current liabilities remained manageable at $10,808,631 in 2024, indicating strong working capital. The company has also demonstrated increasing profitability, with net income attributable to Outdoor Living Brands Holdco, LLC growing from $6,089,513 in 2022 to $20,635,648 in 2024. The auditors issued an unqualified opinion, indicating the financial statements present fairly in all material respects. Emphasis of matter notes in the audit report pertain to significant transactions with related parties and a change in accounting policy regarding income tax allocation, but these do not indicate financial distress.
Financing Details
Outdoor Lighting Perspectives Franchisor, LLC does not generally offer direct or indirect financing. However, under limited and special circumstances, the franchisor may offer financing options to qualifying existing franchisees. In these situations, Outdoor Lighting Perspectives Franchisor, LLC may finance up to 80% of the franchise fee for up to 24 months. The effective annual interest rate for such financing would be four percentage points above the prime interest rate on the franchise agreement's effective date, with a maximum of 10% per year for California franchisees. There is no prepayment penalty for these loans. If payments are late, the franchisor may either accelerate the entire balance due or accept the late payment with a 10% late charge.
Performance Metrics
Total US Locations
135
Franchised Units
135
Corporate Units
0
Franchising Since
2004
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Count
1
Litigation Summary
Outdoor Lighting Perspectives Franchisor, LLC has no litigation to report. However, its predecessor, Outdoor Lighting Perspectives Franchising Inc., was involved in one concluded lawsuit. This case, filed in 2014, was against a former franchisee, Outdoor Lights of Baltimore, LLC, and its owners for breaching their contract, infringing trademarks, and misappropriating goodwill by operating a competing business after their franchise was terminated. Outdoor Lighting Perspectives Franchising Inc. sought an injunction, and the defendants failed to respond to the complaint. A preliminary injunction was granted in June 2014, preventing the defendants from operating a competing business within their former territory for two years, using the trademarks, and compelling them to return confidential information. The case was settled in January 2015, with the defendants agreeing to comply with the injunction and pay Outdoor Lighting Perspectives Franchising Inc. $17,500 for enforcement costs.
Bankruptcy History
Outdoor Lighting Perspectives Franchisor, LLC has no bankruptcy history that is required to be disclosed in Item 4 of its Franchise Disclosure Document.
Agreement Terms
Initial Term
7 years
Renewal Term
5 years
Renewal Conditions
To renew their franchise agreement, Outdoor Lighting Perspectives franchisees must meet several conditions. They must be current on all payments to the franchisor, not have committed two or more breaches of the agreement within 24 months before the term ends (even if cured), and consistently meet their Minimum Annual Sales Quota. Franchisees must also provide written notice of their intent to renew 6 to 9 months before the initial term expires, sign the franchisor's then-current successor franchise agreement (which may have different terms like higher fees), pay a renewal fee equal to 10% of the current initial franchise fee, and sign a general release of claims against the franchisor and its affiliates. Additionally, franchisees are required to upgrade their computer system and vehicle to current standards, be in full compliance with the Operations Manual, and provide proof of current licenses, insurance, and permits. The franchisor may also modify the territory at renewal to align with current standards for new franchisees.
Training & Support Program
Franchisor Assistance
Outdoor Lighting Perspectives Franchisor, LLC provides various types of assistance to its franchisees. Before opening, the franchisor designates the franchisee's territory and provides, at the franchisee's cost, initial marketing collateral, vehicle wraps, and a tradeshow booth. It also provides a required initial training program for the franchisee and one other person, conducted in two phases in Richmond, Virginia, covering topics like marketing, sales, product design, business management, and installation. Ongoing support includes researching new products, services, and methods, and providing updates. The franchisor loans franchisees a confidential Operations Manual with mandatory standards and procedures. Representatives are available for telephone consultations during business hours. The franchisor may also hold mandatory annual conferences on topics like sales techniques, new products, and marketing, for which franchisees must pay a conference fee and travel expenses. The franchisor designs advertising and marketing materials, and may, at its discretion, visit the franchisee's business during the first six months of operation. Franchisees are also required to use and pay a monthly license fee for a proprietary data management and CRM system, with ongoing maintenance covered by a monthly Intranet Software License and Support Fee.
Initial Training Hours
98
Training Location
Richmond, Virginia
Ongoing Support
Outdoor Lighting Perspectives Franchisor, LLC provides ongoing support to its franchisees through several channels. It continuously researches and provides information on new products, services, and methods to help franchisees stay competitive. Franchisees receive a confidential Operations Manual, which is periodically updated with mandatory specifications, standards, and operating procedures. Representatives are available for telephone consultations during regular business hours to discuss operational experiences. The franchisor may also hold mandatory annual conferences covering sales techniques, bookkeeping, new product developments, and marketing, which franchisees and their employees are required to attend. Additionally, franchisees use a proprietary data management and CRM system for which they pay a monthly license and support fee, covering ongoing maintenance of the computer system.
Franchise Requirements
Ideal Candidate Profile
Outdoor Lighting Perspectives Franchisor, LLC seeks individuals who are committed to the business. The ideal candidate or their designated business manager must devote full-time to the management and operation of the Outdoor Lighting Business. If the franchisor determines a candidate lacks sufficient business experience, they must designate an operating manager who will meet the franchisor's approval, attend and complete initial training, and comply with all confidentiality and non-competition obligations. The franchise also welcomes individuals operating existing complementary, non-competing home services contracting businesses, such as landscaping, provided they receive prior approval.
Industry Experience Required
No
Management Experience Required
Yes
Sales Experience Required
No
Technical Skills Required
Yes
Operational Details
Location Type
Home-Based
Owner Participation
Supervisory
Territory Type
Protected
Territory Size Requirements
Outdoor Lighting Perspectives Franchisor, LLC grants franchisees a protected territory delineated by zip codes. A typical territory is designed to have a population of less than 700,000 people. However, the franchisor may allow a franchisee to purchase additional geographic areas, potentially expanding the territory's population up to 999,999 individuals. If a territory's population exceeds 700,000, an additional fee of $0.071 per individual over the 700,000 limit is applied. The exact size of the territory is determined based on factors such as population density, zip codes, counties, median household income, and economic development.
Staffing Notes
Outdoor Lighting Perspectives Franchisor, LLC requires that either the franchisee or a designated business manager devote full-time to the management and operation of the business. Franchisees are solely responsible for locating, interviewing, hiring, scheduling, supervising, compensating, and disciplining all employees. They must implement a training program for their business employees and maintain a staff of trained individuals sufficient to operate the business in compliance with the franchisor's mandatory standards.