What is the average estimated annual cost for the Business Management Software for a Spray Net franchise?
Spray_Net Franchise · 2025 FDDAnswer from 2025 FDD Document
ported performing at least ten (10) Interior jobs. The "Average" is the average of all of the Average Job Size reported by each Business during the 2024 Calendar Year.
| Average | Median | Low | High | # | ||
|---|---|---|---|---|---|---|
| Reported | ||||||
| CN Businesses | 96 Months | 84 Months | 48 Months | 120 Months 6 46.2% | 13 | |
| Months of Operation | ||||||
| CN Businesses Gross Sales | $1,253,259 | $1,090,285 | $727,327 | $2,794 ,680 5 38.5% | 13 | |
| (Production) CAD | ||||||
| Gross Margin | 60.6 % | 59.9 % | 50.8 % | 69.2 % 7 58.3% | 12 | |
| Estimated Gross Profit CAD | $759,435 | $652,989 | ||||
| Disclosed Expenses | ||||||
| Marketing | 9.0 % | 8.2 % | 5.0 % | 15.4 % 6 46.2 % | 13 | |
| Accounting, Professional | 1.9 % | 1.2 % | 0.5 % | 9.9 % 3 23.1% | 13 | |
| Services & Bank fees | ||||||
| Gas | 2.1 % | 1.9 % | 0.8 % | 3.5 % 5 38.5% | 13 | |
| Liability Insurance | 0.8 % | 0.5 % | 0.03 % | 2.1 % 5 38.5% | 13 | |
| Office Expenses | 1.2 % | 0.1 % | 0.00 % | 6.6 % 4 30.8% | 13 | |
| Meals & Entertainment | 0.3% | 0.3% | 0.02% | 0.8% 6 46.2% | 13 | |
| Shipping | 0.5 % | 0.4 % | 0.0 % | 1.5 % 5 38.5% | 13 | |
| Vehicle, Vehicle Insurance, & | 4.5 % | 4.1 % | 1.8 % | 9.2 % 5 38.5% | 13 | |
| Repairs | ||||||
| Total Disclosed Expenses | 20.2% | 16.8% | ||||
| Estimated Expenses | ||||||
| Estimated Royalties (7% of | $87, 728 | $76, 320 | See Item 6 (7% of Gross Sales subject to minimum amounts) | |||
| Gross Sales) CAD | ||||||
| Estimated Business | $7,3 33 | $6,9 26 | One year. See Item 6 ($350/month + 0.25% of Gross Sales) | |||
| Management Software CAD | ||||||
| Estimated Convention & | $2,500 | $2,500 | One year. See Item 6 | |||
| Regional Meetings CAD | ||||||
| Estimated Tech Package CAD | $300 $75,196 | $300 $65,417 | One year. See Item 6 Most of our franchisees do not incur sales commission expenses because they handle the sales of their Franchised Businesses themselves. However, we recommend that franchisees pay 6% Sales Commissions. | |||
| Estimated EBITDA | $332,960 | $318,115 | These figures only include the Disclosed Expenses and Estimated Expenses listed in this table and do not include all of the costs you will incur in the development and ongoing operation of your Franchised Business. | |||
| (Estimated Gross Profit less | ||||||
| Disclosed Expenses | ||||||
| Percentages and Estimated | ||||||
| Expenses) | ||||||
| CAD | 26.6% | 29.2% | # Section III Average Gross Sales (Production) and Certain Disclosed and Estimated Expenses from CN and US Businesses January 1, 2024 to December 31, 2024 |
The chart in this Section III includes actual Gross Sales (Production) data and certain Disclosed Expenses and Estimated Expenses. The Gross Sales (Production) in this Section III is the actual amount that the thirteen (13) CN Businesses and seven (7) US Businesses experienced between January 1, 2024 and December 31, 2024 (see Section I). "Estimated Gross Profit" in this Section III is estimated by multiplying the applicable Gross Sales (Production) (average, median, low, high) by the applicable Gross Margin (average, median, low, high). As used in this Section III, the term "Gross Margin" means a particular business's Gross Profit (Gross Sales (Production) less Labor and Paint costs divided by the business's Gross Sales (Production).
The Disclosed Expenses in this Section III are percentages derived from the CN Businesses and US Businesses that reported certain data to us between January 1, 2024 and December 31, 2024. Not all of the CN Businesses and US Businesses reported financial data to us for each category in these charts, so the column labeled "# Reported" discloses the number of Businesses that reported that particular category of Disclosed Expenses.
| Average | Median | Low | High | # | |
|---|---|---|---|---|---|
| Reported | |||||
| US Businesses | 25 Months | 19 Months | 19 Months | 36 Months 3 42.9% | 7 |
| Months of Operation | |||||
| US Businesses Gross Sales | $557 ,539 | $493 ,462 | $320 ,305 | $962 ,190 2 28.6% | 7 |
| (Production) USD | |||||
| Gross Margin | 54.8% | 55.9% | 47.2% | 61.9% 4 57.1 % | 7 |
| Estimated Gross Profit USD | $305,366 | $275,920 | |||
| Disclosed Expenses | |||||
| Marketing | 15.0 % | 15.9 % | 10.1 % | 19.1 % 4 57.1 % | 7 |
| Accounting, Professional | 1.5 % | 1.7 % | 0.5 % | 2.4 % 4 57.1% | 7 |
| Services & Bank fees | |||||
| Gas | 1.2 % | 1.1 % | 1.0 % | 1.7 % 2 28.6% | 7 |
| Liability Insurance | 1.4 % | 1.4 % | 0.5 % | 2.3 % 3 42.9% | 7 |
| Office Expenses | 2.5 % | 2.3 % | 0.0 % | 6.1 % 3 42.9% | 7 |
| Meals & Entertainment | 0.9% | 0.3% | 0.1% | 2.7% 2 28.6% | 7 |
| Shipping | 1.1 % | 1.0 % | 0.9 % | 1.8 % 2 28.6% | 7 |
| Vehicle, Vehicle Insurance, & | 1.3 % | 0.9 % | 0.2 % | 3.2 % 2 33.3% | 7 |
| Repairs | |||||
| Total Disclosed Expenses | 24.8% | 24.6% | |||
| Estimated Expenses | |||||
| Estimated Royalties (7% of | $39, 028 | $34, 542 | See Item 6 (7% of Gross Sales subject to minimum amounts) | ||
| Gross Sales) | |||||
| USD | |||||
| Estimated Business | $5,5 94 | $5,4 34 | One year. See Item 6 ($350/month + 0.25% of Gross Sales) | ||
| Management Software USD | |||||
| Estimated Convention & | $2,500 | $2,500 | One year. See Item 6 | ||
| Regional Meetings USD | |||||
| Estimated Tech Package USD | $300 $0 | $300 $0 | One year. See Item 6 Most of our franchisees do not incur sales commission expenses because they handle the sales of their Franchised Businesses themselves. However, we recommend that franchisees hire a salesperson and pay 6% Sales Commissions as their business grows. Estimated Sales Commissions are omitted here because of the average length of time in operation of the US Businesses (17 Months) as compared to the average length of time in operation of the CN Businesses (78 Months). | ||
| Estimated EBITDA | $119,561 | $111,566 | These figures only include the Disclosed Expenses and Estimated Expenses listed in this table and do not include all of the costs you will incur in the development and ongoing operation of your Franchised Business. |
Source: Item 19 — FINANCIAL PERFORMANCE REPRESENTATIONS (FDD pages 63–72)
What This Means (2025 FDD)
According to Spray Net's 2025 Franchise Disclosure Document, Canadian Spray Net businesses have an average estimated annual cost of $7,333 CAD for business management software, while US Spray Net businesses have an average estimated annual cost of $5,594 USD for the same software. These figures are based on data from 13 Canadian businesses and 7 US businesses. The FDD also notes that these costs are based on figures from January 1, 2024, to December 31, 2024.
For Canadian franchises, the median cost is $6,926 CAD. For franchises in the United States, the median cost is $5,434 USD. The disclosure clarifies that these costs are based on a formula of $350 per month plus 0.25% of gross sales, as detailed in Item 6 of the FDD.
It is important to note that these are estimated costs, and the actual expenses may vary. The FDD advises prospective franchisees to consult with financial advisors to prepare budgets and projections. Additionally, the document states that written substantiation for these financial performance representations will be made available to the prospective franchisee upon reasonable request.
Given the currency differences, a prospective franchisee should carefully consider the exchange rates and their potential impact on the actual cost of the software. The FDD provides an exchange rate as of April 15, 2024 ($1 USD = $1.4011 CAD) and encourages franchisees to review the current exchange rate when making financial decisions.