Line-X Faces Mass Exodus as Franchisees Refuse New Agreement Terms

US-based franchise magazine, Franchise Times, recently published an article about how LINE-X, a leading provider of spray-on bedliners and protective coatings, is experiencing a significant exodus of franchisees due to disagreements over new agreement terms.

Michael Einbinder is quoted in the article as the representative of the Independent Association of Line-X Franchises. He says: “I understand that franchise agreements and systems change, but Line-X is trying to impose a completely new business model, where it charges royalties in a system that for more than 20 years was advertised as a non-royalty franchise. This will destroy the value of these businesses.”

The franchisees are refusing to accept the proposed terms, which they believe are unfavorable and may negatively impact their businesses. This mass departure highlights the challenges franchisors face in maintaining positive relationships with franchisees and underscores the importance of fair and transparent franchise agreements in sustaining successful franchise systems.

Read the full article here.