Understanding the start-up costs involved with our investment is crucial for potential Outdoor Lighting Perspectives (OLP) franchisees. Reviewing the outdoor lighting franchise costs allows for informed decision-making and financial planning, ensuring you’re fully prepared to invest in and grow your business successfully. Depending on your situation, you may need additional income to support you as your business ramps up.
Outdoor Lighting Perspectives is a leading architectural and landscape lighting provider known for innovative designs and high-quality installations. OLP franchisees offer their clients a range of services, including custom outdoor lighting design, installation, and maintenance for residential and commercial properties, enhancing aesthetics and security.
The initial capital required to start an OLP business usually falls between $100K and $150K*, which includes the initial franchise fee. We offer various discounts to eligible franchise candidates, including Veterans. For example, your start-up expenses can be notably lower if you incorporate an outdoor lighting franchise into your existing business or aim to convert your current outdoor lighting business into the OLP brand.
Owning an Outdoor Lighting Perspectives franchise offers many benefits, such as leveraging a proven business model, receiving comprehensive training and ongoing support, and tapping into a recognized brand with a strong market presence. Read on to learn more about the investment and other important financial information to help you decide whether an OLP franchise is right for you.
*The typical starting cost for a new Outdoor Lighting Perspectives location is $99,675 to $214,200. This includes the initial franchise fee, the required marketing investment, additional working capital, a branded vehicle, and necessary tools and equipment.
Initial Franchise Fee
The initial Outdoor Lighting Perspectives franchise fee is one of the first investments you’ll make as a new franchisee and ranges from $32,175 to $59,500**. This fee covers the initial inventory, access to our proven business model, comprehensive training, continuous support, and more.
We offer several discounts on your initial franchise fee***, including:
– Add-on Discount for an Existing Home Services Contracting Business
– 15% Veteran Discount
– Multi-Territory Discount
– Existing Franchisee: Additional Territory Discount
– Existing Franchisee: Additional Concept Discount
– Discount for Employees of Franchisees
**See note about Additional Population Fee in Outdoor Lighting Perspective’s 2024 FDD.
***Combination and Application of Discounts: The VetFran discount is the only discount that can be combined with our other discounts.
Initial Investment Breakdown
Your initial investment in the Outdoor Lighting Perspectives franchise opportunity covers necessities such as inventory, tools and equipment, and start-up advertising. Here’s a breakdown to give you an idea of how it all shakes out:
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Key Factors That Influence Costs
In franchising, expenses are affected by variations in industries, unique cost structures, and market conditions. Your geographic location is another important factor that can shape your initial investment and operations costs with Outdoor Lighting Perspectives.
We factor in your location’s population to determine your franchise fee, and depending on the number of residents in your area, you may be required to pay a larger population fee. We offer a variety of discounts to help lower start-up costs; when you contact us, we can provide you with a more accurate estimate of what you can expect in terms of related expenditures.
Ongoing Fees and Costs
With any franchise opportunity, you can expect to pay ongoing fees and costs to continue doing business as part of the brand, fund ongoing marketing and advertising efforts to keep business coming in, and other ongoing expenses, like operational, maintenance, and repair costs.
Royalty Fees
These fees are determined by calculating the greater of the two:
- (a) the sum of 7% of gross revenue
- (b) the minimum royalty of $1,100 per month
National Branding and Marketing Fee
We’ve formed a National Branding and Marketing Fund for advertising purposes that provides materials and services to franchisees.
Digital Marketing Fee
This fee may be applied to developing, producing, publishing, or distributing digital advertisements, marketing, or promotions. You’ll pay our then-current fee, which is currently $300 per month.
Individual Advertising Investment
We’ll provide recommendations for local advertising. The minimum required individual advertising investment is $55K per calendar year for one territory.
Bookkeeping Services Fee
A required fee if you elect to use us or our affiliate for bookkeeping services. You’ll pay our then-current fee, which is currently $350 per month.
Insurance
At a minimum, you must meet our insurance requirements by obtaining comprehensive general liability coverage and products liability insurance.
Software License and Support Fee
You’ll pay $250 per month to utilize our proprietary operations technology and quote-generating software.
CRM License Fee
You’ll pay $225 per month to utilize our customer relationship management (CRM) software.
State License Fee
In limited circumstances in certain states, if you do not currently meet the qualifications to obtain the required license to operate, we may allow you to operate your Outdoor Lighting Business in connection with a license that we or our affiliates own, provided that you obtain your own license within six months after you meet the state experience qualifications. You’ll pay our then-current fee, which is currently $150 per month.
Financing Options
When it comes to financing your outdoor lighting franchise costs, you have several options that can cater to your individual needs and circumstances. Traditional methods such as loans, investors, and partnerships have been widely responsible for helping to secure capital for starting a business. You may also prefer to explore alternative financing solutions, as they can open up new opportunities and set the stage for entrepreneurial success in the ever-changing world of franchising.
Although OLP doesn’t provide direct franchise financing, we’ll assist you in finding third-party options to help you achieve your franchising goals. For qualified OLP franchise candidates, up to half of the franchise fee may be financed through our third-party lenders. Third-party lenders and companies specializing in franchise financing can offer customized solutions to support your entrepreneurial ambitions, including utilizing retirement savings to fund your franchise launch.
Profit Potential and ROI
The Outdoor Lighting Perspectives franchise opportunity has earned several awards, and we’re continually reinvesting in our programs to provide future franchisees with even better resources. Our commitment to franchisee success drives OLP franchise owners to achieve impressive average unit volumes (AUVs):
- AUV: Single Territory Franchisees – $614,809
- AUV: Multi-Territory Franchisees – $1,056,174
- AUV: Annual Sales Volume – $770,585
- Average Price Per Project – $4,385
- Average Price Per Fixture – $313
- Gross Profit Margin (Average) – 53.8%
Invest in Success
Starting an Outdoor Lighting Perspectives franchise requires a substantial investment but provides a clear path to owning a successful business in the landscape lighting industry. As a franchisee, you’ll receive comprehensive training, ongoing support, and strong branding, enabling you to build a successful business. If you’re ready to start your entrepreneurial journey, the OLP franchise opportunity could be the perfect fit for you.
Are You Ready to Light Up Your Career? Let Outdoor Lighting Perspectives be the guide that illuminates your path to achieving your entrepreneurial dreams. Reach out today to see where our outdoor lighting franchise can take you.
