Investing in a franchise may seem like an excellent business opportunity, but not all franchises offer the same potential for success. In this article, we will analyze three franchises where you should not invest without first evaluating their numbers: No-H2O, US Lawns, and Line-x. We will use specific data from your Franchise Disclosure Documents (FDDs) to support our conclusions.

These are not the only franchises that Interlink FBC does not recommend buying, there are others. And we reveal them to you below:

Non-H2O Franchise

No-H2O is a franchise that offers water-free car wash and detailing services, using innovative technology that saves up to 35 gallons of water per wash. They focus on convenience and care for the environment, offering in-home services for residential and commercial customers.

Franchise No H20

Non-H2O does not provide specific financial representations in Item 19 of your FDD. This means that it does not offer detailed data on the sales, revenue, or potential profits of its franchises. The lack of financial transparency is a major concern for potential investors, as it makes it difficult to assess the actual performance of the franchise.

The initial investment to open a Non-H2O franchise is estimated to be between $134,000 and $163,000. Although the business model seems innovative as a waterless car wash franchise, the lack of concrete financial data makes it difficult to justify such a significant investment. In addition, the franchise fee is $49,500, a considerable amount considering the lack of transparency in financial performance.

The lack of clear and detailed financial information in Item 19 makes Non-H2O a risky investment. Without hard data on revenue and profits, it’s difficult to assess whether the franchise can be profitable, making No-H2O an unattractive option for cautious investors.

US Lawns Franchise

US Lawns is a franchise dedicated to the maintenance of commercial landscapes. They offer a wide range of services, including lawn care, landscape design, snow and ice management, and more. Their focus is to provide comprehensive and high-quality solutions for businesses to keep their exteriors in optimal condition throughout the year.

US Lawns Franchise

U.S. Lawns provides data on financial performance, but this data can be misleading. According to its 2022 FDD, the average annual gross sales of 196 franchisees were $1,076,284, with a net profit margin of more than 14.5%. However, these numbers do not consider the significant variations between different franchises and the specific circumstances of each location.

The initial investment for a US Lawns franchise ranges from $61,500 to $141,800. Even though U.S. Lawns offers financial data in its Item 19, net profits may not be enough to justify the initial investment and operating costs. Variations in financial performance between franchises and the lack of a significant net profit make this franchise a dubious option for investors.

Line-X Franchise

Line-X is a franchise specialized in the application of protective coatings for vehicles and industrial surfaces. Their products, based on polyurethane and polyurea, are known for their durability and extreme strength. Line-X offers solutions to protect and extend the life of vehicles, equipment, and structures exposed to severe conditions.

Line X franchise

Line-X provides limited information in its Item 19 about the financial performance of its franchises. A lack of detailed cost and profit data can make it difficult to assess profitability potential. In addition, many franchisees report income that varies significantly depending on location and local competition.

The initial investment to open a Line-X franchise ranges from $210,000 to $654,000. This range includes the initial franchise fee, equipment costs, remodeling of the premises and initial inventory.

Lack of financial transparency and high upfront costs are factors that should be carefully considered before investing. Without clear data on potential profits, it’s difficult to assess whether franchising can be profitable, making Line-X an option to avoid.

Explore other franchise options

Franchises such as No-H2O, US Lawns, and Line-X are franchises where you should not invest without first making a due analysis of their numbers. These may not be the best decision due to a lack of financial transparency, insufficient profit margins, and high operating costs. It is crucial to carefully evaluate FDD data and consider other franchise options that offer better prospects for profitability and lower financial risk. Taking the time to research and analyze franchises can prevent costly and unprofitable investments.

At Interlink FBC we have a portfolio of +750 franchises from 35 different industries, and we are ready to accompany you in the process of analyzing and selecting what could be your next profitable investment in the United States. Contact us.

Franchising in the United States