Outdoor Lighting Perspectives Franchise Costs, Fees & Owner Salary (2023)

INVESTMENT

$100,000

-

$214,000

LOCATIONS

128

Adam

Updated

May 2, 2024

Is

Outdoor Lighting Perspectives

a franchise?

Yes,
Outdoor Lighting Perspectives
currently
accepts
franchise
applications

Outdoor Lighting Perspectives is a pioneering franchise in the realm of outdoor lighting solutions, offering innovative illumination concepts since its inception in 1995. Founded in Richmond, Virginia, this franchise has burgeoned into a beacon of expertise, illuminating outdoor spaces across the United States, Canada, and beyond.

Specializing in transforming outdoor environments through artistic and functional lighting designs, Outdoor Lighting Perspectives began franchising in 1998, enabling entrepreneurs to join their mission of enhancing outdoor living experiences. Headquartered in Richmond, Virginia, Outdoor Lighting Perspectives boasts a comprehensive range of lighting solutions tailored to accentuate landscapes, architectural features, and outdoor living areas.

Their offerings include custom-designed lighting installations, energy-efficient LED solutions, and maintenance services, catering to both residential and commercial clientele. What sets Outdoor Lighting Perspectives apart is their unwavering commitment to craftsmanship, personalized design consultations, and cutting-edge technology.

By marrying aesthetics with functionality, they elevate outdoor spaces into captivating extensions of living areas, distinguishing themselves from competitors in the outdoor lighting industry. With a steadfast dedication to excellence and innovation, Outdoor Lighting Perspectives continues to illuminate the way for outdoor living enthusiasts worldwide.

How many

Outdoor Lighting Perspectives

franchises

are there?

In 2022, there were
128
outlets in
the United
States, of which
128
are franchises, and
0
are corporate-owned.

What are the

Outdoor Lighting Perspectives

franchise

fees?

Royalty fee

3.5% to 7%

Advertising fee

2% plus $55,000 per year

Initial Franchise Fee

The Initial Franchise Fee ranges from $32,175 to $59,500, payable in a lump sum at the time of signing the Franchise Agreement.

Initial Marketing Collateral

Costs between $2,000 to $3,000, covering materials like stationery, flyers, and yard signs.

Computer Hardware and Software

Expenses range from $1,000 to $2,000, including the cost for licensing Quick Books, a desktop or laptop computer, and a printer.

Start-up Marketing and Advertising

Requires an investment of $20,000 to $45,000 for the first ninety days after satisfactorily completing the initial training.

These initial fees cover a range of essential startup costs, from the franchise fee itself to marketing, equipment, and inventory necessary to commence operations.

Royalty Fees

Royalty Fees are due monthly, starting with a fee equal to seven percent (7%) of the Business's Gross Revenue for the first twelve months of operation. Commencing with the thirteenth month, the Royalty Fee adjusts to the greater of the Minimum Royalty Fee or seven percent (7%) of the Business's Gross Revenue, with a reduction to five percent (5%) on Gross Revenues exceeding $1,000,000 in any calendar year.

Minimum Royalty Fee

The Minimum Royalty Fee is $1,100 per territory, commencing on the thirteenth full month the Business is open for business and continuing for the Initial Term and any Interim Period of the agreement.

National Branding & Marketing Fee

The National Branding & Marketing Fee is set at 1.5% on the first $1,000,000 of Gross Revenues in any calendar year, with no fee due on Gross Revenues over $1,000,000. This fee is payable monthly at the same time as the Royalty.

Digital Marketing Fee

The Digital Marketing Fee is currently $300 per month, used at the franchisor's discretion for various digital marketing efforts. The franchisor may increase this fee with thirty days' prior written notice.

Transfer Fee

A Transfer Fee of $10,000 is payable before the transfer of the franchise. This fee is in addition to any broker fees or commissions involved with the sale or transfer of the Business.

Note: The fees presented here can be found in the Item 5 of the Franchise Disclosure Document. For a complete list of all the fees borne by the franchisee, please consult the Franchise Disclosure Document.

How much does

it cost

to start a

Outdoor Lighting Perspectives

franchise?

It costs between
$100,000
and
$214,000
to start a
Outdoor Lighting Perspectives
franchise.
Type of Expense Amount
Initial Franchise Fee $32,175 - $59,500
Initial Marketing Collateral $2,000 - $3,000
Vehicle Wrap $2,500 - $3,000
Trade Show Booth $1,500 - $2,000
Travel and Living Expense While Training $2,000 - $3,500
Tools and Equipment $1,000 - $2,000
Computer Hardware and Software $0 - $1,200
Inventory $13,000 - $14,000
Start-up Marketing and Advertising $20,000 - $45,000
Vehicle $0 - $40,000
Additional Funds (three months) $10,850
Total $85,025 - $184,050

Note: The table above provides a snapshot of the main costs associated with starting the most common franchise format (as disclosed in the Item 7 of the Franchise Disclosure Document). For a complete overview of all the expenses involved with the various formats offered by the franchisor, please consult the Franchise Disclosure Document.

Does

Outdoor Lighting Perspectives

provide

training

to its

franchisees?

Yes,
Outdoor Lighting Perspectives
provides
training

The franchisor provides a comprehensive training program for franchisees, which is divided into two phases:

Phase I Training

  • Location: Richmond, Virginia
  • Duration: 10 days
  • Focus: The system, techniques, procedures, installation, methods of operation, advertising, sales techniques, promotional ideas, marketing plans, customer relations, instructions on quality standards, and practical experience in the operation of a franchise.
  • Completion of Phase I is deemed as the franchisee being fully trained and ready to open for business.

Phase II Training

  • Location: Richmond, Virginia
  • Timing: Summer before the franchisee's first holiday lighting season
  • Duration: 2 to 3 days
  • Focus: Likely centered on specific seasonal aspects relevant to the business, such as holiday lighting, although detailed content is not explicitly described.

Additional Training Opportunities

  • Supplemental and Refresher Training: The franchisor may offer additional training programs, for which a reasonable fee might be charged. These are designed to update or enhance the franchisee's skills and knowledge.
  • Annual Conferences: The franchisor may hold annual conferences to discuss various topics like sales techniques, new product developments, bookkeeping, accounting, and advertising programs. Attendance is strongly recommended for franchisees.
  • Operational Support: A franchisor representative may be available to discuss operational issues with the franchisee during normal business hours.

On-site Visits: The franchisor may visit the franchisee's business during the first six months of operations to offer support and guidance.

Does

Outdoor Lighting Perspectives

provides

territory

protection?

The franchisor does offer territory protection to franchisees. Territories are delineated by zip codes, and the size of a territory depends on factors like population density, zip codes, counties, median household income, and economic development. Typically, a territory will have a population of less than 700,000 people. Franchisees maintain rights to their territory even if the population within the territory changes.

The franchisor has the exclusive right to determine the boundaries of a territory at its sole discretion. Franchisees are granted a protected territory, meaning the franchisor will not operate Outdoor Lighting Businesses or grant franchises for an Outdoor Lighting Business within a franchisee's territory, provided the franchisee meets their Minimum Annual Sales Quota.

If a franchisee fails to meet the Minimum Annual Sales Quota, the franchisor reserves the right to reduce the size of the franchisee's territory, grant additional franchises within the territory, or terminate the franchise agreement.

Can a

Outdoor Lighting Perspectives

franchise

be run as

a passive

investment?

The franchisor requires franchisees to be actively involved in the day-to-day operations of their franchise businesses. Specifically, the franchisee or a fully trained and qualified operating manager must devote full time to the management and operation of the business.

This stipulation ensures that the franchisee or a designated manager is directly responsible for the daily functioning and success of the franchise, maintaining the standards and procedures set by the franchisor.

Additionally, the franchisee is responsible for locating, interviewing, hiring, scheduling, supervising, compensating, and disciplining all employees of the business. This underscores the expectation that the franchisee will be actively involved in the personnel management aspect of the franchise, which is a significant component of day-to-day operations.

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