From the filings
Software purchasing at LINE-X is controlled at the corporate level, with key decision-makers including CEO James D. Scott and President Matt Labuda. The franchise mandates a Growth Performance System (GPS) and the LINE-X Portal across its 116-unit network. With a 10-year initial term and a 12% royalty, the addressable market is a concentrated, single-operator footprint ripe for vendor evaluation.
For software vendors selling into US franchise brands.
Live signals
Ongoing fee load
The recurring percentage of gross sales named in this filing, before rent, labour or any technology fee.
13.5%of gross sales (FY2026)
15% reference
Franchisor behaviours
26 requirements the franchisor states in this filing, each in its own words; 2 explicit no's; 6 questions the text does not settle, which is not a no.
Accounting
Must the franchisee use an accounting or bookkeeping system designated or approved by the franchisor?
YesFranchise agreement
You shall maintain books and records, including records of purchases and sales, tax returns, and other records typical for a business of this type and size using LINE-X’s POS System, bookkeeping software, and a specified and standardized chart of accounts.
Does the franchisor have direct or independent electronic access to the franchisee's financial, sales or customer records?
YesFranchise agreement
You shall provide and we will have full and independent access to all computers and any other systems, including the POS System, and the information and data they contain relating to the operation of your Franchised Business during the Term and for up to five (5) years after the expiration or termination of the Term.
Must the franchisee submit periodic financial statements (monthly, quarterly or annual) to the franchisor?
YesFranchise agreement
Such records may include, but are not limited to, sales and operations reports for each month, quarter, and year; fiscal year-end balance sheet and income statement for your business, verified and signed by you;
How the franchisor buys
Is the franchisor or an affiliate itself a supplier of required products, services or systems?
YesItem 8
We are the only approved supplier of the Required Purchases, and we will derive revenue and profit as a result of your purchase of the Equipment Package.
Is there a franchisee advisory council, association or committee?
YesItem 11
We have established a franchise advisory council, which we call our Franchise Advisory Board (“FAB”), that provides feedback to us about marketing and the System.
Does the franchisor reserve the right to change designated suppliers or systems at any time?
YesItem 16
We reserve the right to change the types of authorized products and services at any time in our discretion.
How much revenue did the franchisor and its affiliates earn from franchisee purchases in the last fiscal year?
17515297Item 8
During the fiscal year October 1, 2024 to September 30, 2025, our revenue as a result of required purchases of Coating Products, LINE-X BRANDED PRODUCTS accessories, and equipment by LINE-X franchisees was $17,515,297.
Does the franchisor or an affiliate receive rebates, commissions or other revenue from designated or approved suppliers?
YesItem 8
In addition to the rebate we currently receive from our suppliers, as disclosed above in this Item, we also receive a 10% rebate from our approved supplier of Valugard corrosion and rust protection products, and a 10% rebate from our approved supplier of application booths and filters, based on purchases by our…
Does the franchisor charge a fee to evaluate a proposed supplier?
YesItem 8
We may require you to pre-pay any reasonable charges connected with our review and evaluation of any proposal up to five thousand dollars ($5,000.00).
Can a franchisee propose a new supplier for the franchisor's approval?
YesItem 8
You can request the approval of an item, product service or supplier by notifying us in writing and submitting such information and/or materials we may request.
Communications
Does the franchisor own or control the business telephone numbers, or take them over when the agreement ends?
YesFranchise agreement
You understand and agree that we own all telephone numbers, domain names, internet addresses/sites and/or other communications services links, and any related directory listings/marketing including but not limited to Google My Business and Google Business Profile listings, used in connection with the operation of…
Data and IT
Must the franchisee comply with PCI, data-security or cybersecurity standards set by the franchisor?
YesFranchise agreement
You shall comply with all credit card policies and applicable laws, as well as maintain the security of cardholder data and adhere to the then-current credit card security standards for the protection of all consumer and cardholder data throughout the Term and after expiration and termination of this Agreement…
Franchise management
Must the franchisee participate in a customer-satisfaction or net-promoter survey program?
YesFranchise agreement
You agree to request your customers to participate in any surveys performed by or on behalf of us, using forms prescribed by us from time to time.
Does the franchisor conduct periodic inspections, audits or evaluations of the franchised business?
YesItem 11
We may institute various programs for auditing customer satisfaction and/or other quality control measures.
Can the franchisor change the operations manual and brand standards unilaterally?
YesItem 11
We may modify this Manual.
Must the franchisor approve the franchisee's site or location before opening?
YesItem 12
You will operate the Franchised Business from a location we accept (the “Premises”).
Marketing
Is a minimum grand opening advertising spend required?
YesItem 7
We require that you spend a minimum of five thousand dollars ($5,000) on a marketing and promotional campaign related to the grand opening of your Franchised Business within the period of two (2) weeks before and six (6) weeks after the opening of your Location.
Is the franchisee required to spend a minimum amount on local advertising or marketing, as a percentage of sales or a fixed amount?
YesItem 11
In addition to contributing One- and One-Half Percent (1.5%) to the Marketing Fund, we require that you spend an additional One- and One-Half Percent (1.5%) on local marketing activities, for a minimum total of Three Percent (3%) of your Gross Revenues each quarter toward marketing and promotion of your LINE-X Store.
Must the franchisee participate in a regional advertising cooperative when one exists?
YesItem 11
If one or more Co-Ops (local, regional and/or national) are formed covering your area, then you must join and actively participate.
Operations
Must the franchisee buy products from a designated distributor?
YesFranchise agreement
You are required to purchase Designated Equipment and LINE-X Products only from suppliers or distributors that we designate.
Must equipment be purchased from designated or approved suppliers?
YesFranchise agreement
You agree that you shall purchase all computer equipment, equipment, inventory, supplies, materials, and other products used in the Franchised Business or offered for sale at your LINE-X Store from approved or designated manufacturers, suppliers, distributors, resellers, and vendors identified and set forth in the…
Payments
Are royalties and other fees collected by automatic bank debit (ACH or electronic funds transfer) from the franchisee's account?
YesItem 6
You shall pay Royalty and make all payments to LINE-X by the method specified by LINE-X in its Business Judgment, which currently is through ACH payment.
Point of sale
Must the franchisee use a specific point-of-sale system designated or approved by the franchisor?
YesFranchise agreement
We require you to purchase and use, in accordance with the use requirements prescribed by us and in the Manual, specific point-of-sale software, including shop management functions, communication and reference portals, and accompanying hardware (“POS System”) which we develop, offer, designate, and/or approve.
Does the franchisor have independent access to the data in the franchisee's POS or computer system?
YesItem 11
We will have full access to all computer and any other systems and the information and data they contain.
Training
Can the franchisor charge the franchisee for additional, refresher or remedial training?
YesFranchise agreement
You shall pay us any reasonable fees we charge for additional training, plus your and your employees’ travel and living expenses while adding such training.
Is attendance at an annual convention or conference mandatory for the franchisee?
YesItem 11
You and/or your manager must attend additional and/or refresher training programs, including national and regional conferences, conventions, and meetings, as we may require, to correct, improve and/or enhance your operations.
LINE-X operates a network of 116 franchised locations, all run by single-unit operators. The brand sits in the automotive services segment, headquartered in North Carolina. For software vendors, the opportunity is a concentrated, HQ-controlled environment: no multi-unit operators exist, meaning every purchasing decision flows through a small corporate team. The franchise charges a 12% royalty on gross sales, and the initial term runs 10 years. Average unit volume is not disclosed in the most recent FDD.
Top states by unit count include Texas (8), New York (5), South Carolina (5), Ohio (5), and California (5). The footprint is geographically dispersed but thin, which means any software rollout must support a distributed, single-owner model. Vendors should note the absence of company-owned units—every location is franchised, and every operator is a small business owner. This structure often makes compliance with mandated systems a critical selling point.
Software purchasing authority sits squarely at LINE-X’s corporate headquarters. The 2026 FDD lists James D. Scott as Manager and Chief Executive Officer, and Matt Labuda as President. Marcus Hamilton serves as Manager and Chief Financial Officer, while George S. Lezon is Executive Vice President and Hannah Erlenbusch is Vice President of Franchise Development. With no multi-unit franchisees, there is no secondary buying center at the operator level. Vendors should direct their pitch to this HQ group, particularly the CEO and President, who are the likely decision-makers for any system that touches operations or financial reporting.
LINE-X mandates two systems across its entire network: the Growth Performance System (GPS) and the LINE-X Portal. The FDD does not name the vendor behind GPS, nor does it detail the functionality of the Portal. For a software vendor, this is both a constraint and an opening. Any new tool must either integrate with these mandated platforms or replace them outright—a high bar given the mandate. The tech landscape is otherwise unspecified; no POS, CRM, or ERP vendors are disclosed. This suggests either a tightly controlled, proprietary environment or a gap in public disclosure. Vendors should investigate whether GPS and the Portal cover operational, financial, or customer-facing workflows before building a pitch.
The 2026 FDD does not include an Item 8 extract, so LINE-X’s procurement model—whether designated supplier, approved supplier, or open—is not publicly known. However, the renewal terms in Item 17 offer a clear timing signal. Franchisees must give notice of renewal between 6 and 12 months before their 10-year agreement expires. They must also meet current standards, complete any required training, and pay a $5,000 renewal fee. This creates a natural window every decade when franchisees are forced to align with current systems. For a software vendor, that window is the moment to demonstrate how a new tool satisfies LINE-X’s evolving standards and reduces operator burden.
The 2026 LINE-X Franchise Disclosure Document is embedded below. It is filed with state franchise regulators and contains the legal and operational disclosures that govern the franchise relationship. For software vendors, the most relevant sections are Item 11 (mandated systems), Item 17 (renewal conditions), and Item 1 (executive team). The FDD confirms a 116-unit, all-franchised network with a 10-year term and a 12% royalty. No parent company is on file, indicating independent ownership. Use this document to verify the tech mandates and identify the exact language around system compliance before engaging LINE-X’s leadership.
For a ranked target list of franchise brands aligned with your software category, FranCloud can help you prioritize the right opportunities.
Questions vendors ask
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FDD alert
We’ll email you the moment LINE-X files a new annual FDD, usually the freshest signal of a vendor change.
Operator footprint
116 operators run 116 mapped locations. 0 of them are multi-unit. Aggregate counts from the filing; no names.
Operators by units owned
Top states by locations
| TX | 8 |
|---|---|
| NY | 5 |
| SC | 5 |
| OH | 5 |
| CA | 5 |
Ownership
pe_firm of Clearlake Capital Group.
Related Automotive services brands
Primary franchise filings · updated June 2026. Every figure is source-traceable and QA-checked.