Franchise Times Reports LINE-X Franchisee Exodus

The Franchise Times reports that numerous LINE-X franchisees are set to leave after LINE-X recently made changes to franchise agreements. The spray-on bedliner and aftermarket truck accessory supplier recently learned that 190 franchisees representing over 200 stores are unwilling to work with new franchisee agreements, according to the report.

The main issue is said to be a change in business model, where franchisees would now pay royalties to the brand after more than 20 years under a non-royalty structure. This change could have large impacts on franchisees who have worked under the old business model for many years, the report states. 

LINE-X did not respond to inquires from THE SHOP for additional information. 

Find the full Franchise Times report here.

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By Pat Curtin

Pat Curtin is the managing editor of THE SHOP magazine.