Lemstone Books
Franchising since 1981 · 7 locations
The total investment to open a Lemstone Books franchise ranges from $82,250 - $166,100. The initial franchise fee is $25,000. Ongoing royalties are 4% plus a 1% advertising fee. Lemstone Books currently operates 7 locations (7 franchised). The top SBA 7(a) lenders for Lemstone Books are Regions Bank, Bank of America and Manufacturers and Traders Trust Company. PeerSense FPI health score: 32/100.
$82,250 - $166,100
$25,000
7
7 franchised
Proprietary PeerSense metric
LimitedActive capital sources verified for Lemstone Books financing
SBA
7(a) Eligible
21d
Avg Funding
P+2.25%
Best Rate
No retainers · Referral fee at closing
FPI Score Breakdown
Growing (10-24 loans)
SBA Lending Performance
SBA Default Rate
50.0%
7 of 14 loans charged off
SBA Loans
14
Total Volume
$1.8M
Active Lenders
12
States
10
Top SBA Lenders for Lemstone Books
What is the Lemstone Books franchise?
Lemstone Books, headquartered in Memphis, TN, represents a compelling opportunity within the specialized sector of retail book sales, specifically in the book stores category. As a franchise, Lemstone Books offers a distinct proposition for entrepreneurs passionate about literature and community engagement. While detailed founding narratives are not extensively provided, the brand’s operation as a franchisor signifies a structured approach to bringing its business model to aspiring owners. The core essence for a Lemstone Books location is inherently tied to fostering local literary culture, providing a carefully curated selection of titles, and serving as a tangible hub for readers in an increasingly digital world. This enterprise is designed to appeal to those who believe in the enduring power of physical books and the unique atmosphere a dedicated bookstore provides. The market position of Lemstone Books is firmly rooted within a segment that values the physical browsing experience, the tactile sensation of a book in hand, and the personalized recommendations often found in independent or specialized bookstores. This focused approach allows a Lemstone Books outlet to carve out a meaningful niche by prioritizing customer experience and a thoughtfully selected inventory, thereby distinguishing itself in the broader retail landscape. The brand's operational footprint, characterized by a current total of seven units, suggests a strategic emphasis on quality, localized impact, and perhaps a deliberate, controlled expansion model rather than widespread, rapid proliferation. Investors considering a Lemstone Books franchise are therefore looking at an opportunity to contribute significantly to local cultural enrichment, providing a vital community space where individuals can explore new ideas, delve into classic narratives, and connect over shared literary interests. This distinct positioning underscores the value proposition for those drawn to the cultural and intellectual aspects of retail.
FPI Score
32/100
SBA Default Rate
50.0%
Active Lenders
12
Key Highlights
Franchise Financing Resources
Data Insights
Key performance metrics for Lemstone Books based on SBA lending data
SBA Default Rate
50.0%
7 of 14 loans charged off
SBA Loan Volume
14 loans
Across 12 lenders
Lender Diversity
12 lenders
Avg 1.2 loans per lender
Investment Tier
Mid-range investment
$82,250 – $166,100 total
Lemstone Books — Deep SBA Data
Brand-specific metrics derived directly from SBA 7(a) approval records — peak lending year, leading state, average loan size, and lender concentration. PeerSense computes these per brand so capital advisors and prospective franchisees can benchmark this opportunity against the rest of the franchise universe.
Peak SBA Year
1996
3 approvals — best year on record for Lemstone Books.
Top SBA State
Texas
3 SBA-financed Lemstone Books locations — the densest operator footprint.
Average Loan Size
$130K
Median $143K — use as a sizing anchor when modeling your own $Lemstone Books unit.
Lender Concentration
35.7%
Moderately Spread
Share of Lemstone Books approvals captured by the top 3 SBA lenders.
Lemstone Books's SBA lending pipeline peaked in 1996 (3 approvals). Operator density is highest in Texas with 3 SBA-financed locations. Average funded ticket sits at $130K, with the median at $143K. Lender mix is moderately spread: the top three SBA lenders account for 35.7% of approvals — meaningful choice exists but specific lenders carry the brand.
Payment Estimator
Estimated Monthly Payment
$851
Principal & Interest only
Locations
Lemstone Books — unit breakdown
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