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Lemstone Books

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.

Investment

$82,250 - $166,100

Franchise Fee

$25,000

Total Units

7

7 franchised

FPI Score
Medium
32

Proprietary PeerSense metric

Limited
Capital Partners
12lenders available

Active 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)

Medium Confidence
32out of 100
Limited

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

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

Loan Amount$66K
Interest Rate9.5%
Term (Years)10 yr

Estimated Monthly Payment

$851

Principal & Interest only

Locations

Lemstone Booksunit breakdown

Total Units
N/A
Franchisee Owned
System Owned
Closed

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Lemstone Books