What is the average estimated EBITDA for Spray Net businesses?
Spray_Net Franchise · 2025 FDDAnswer from 2025 FDD Document
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. | |||
| (Estimated Gross Profit less | ||||||
| Disclosed Expenses | ||||||
| Percentages and Estimated | ||||||
| Expenses) | ||||||
| USD | 21.4 % | 22.6 % |
| Number of Businesses | 7 | 11 | | |---|---|---|---| | Average | 89 | 88 | | | Median | 90 | 92 | | | High | 100 | 100 | | | Low | 62 | 60 | | | Number and Percentage of | 4 (57.1%) | 9 (81.2%) | | | Franchisees that Met or | | | | | Exceeded the Average | | | |
Section IV Average Net Promoter Score January 1, 2024 to December 31, 2024
Note: The chart below in this Section IV includes Net Promoter Score data from seven (7) US Businesses that operated for any amount of time during the 2024 Calendar Year (not necessarily the entire year) and eleven (11) CN Businesses that operated for any amount of time during the 2024 Calendar Year (not necessarily the entire year) subject to the following criteria: (i) they must have had at least a twenty percent (20%) response rate and (ii) at least ten (10) responses to requests for reviews.
| US Businesses | CN Businesses | |
|---|---|---|
| Number of Businesses | 7 | 11 |
| Average | 89 | 88 |
| Median | 90 | 92 |
| High | 100 | 100 |
| Low | 62 | 60 |
| Number and Percentage of | ||
| Franchisees that Met or | 4 (57.1%) | 9 (81.2%) |
| Exceeded the Average |
General Notes to this Item 19:
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- Some outlets have sold this amount. Your individual results may differ. There is no assurance you will sell as much.
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- Written substantiation for these financial performance representations will be made available to the prospective franchisee upon reasonable request.
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- We encourage you to consult with your own accounting, business, and legal advisors to assist you in preparing your budgets and projections, and to assess the likely or potential financial performance of your franchise. We also encourage you to contact existing franchisees to discuss their experiences with the system and their franchise business. Notwithstanding the information within this financial performance representation, existing franchisees of ours are your best source of information about franchise operations.
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- As noted above, the CN Businesses are located in Canada and reported the financial data included in this Item 19 to us in Canadian Dollars.
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Source: Item 19 — FINANCIAL PERFORMANCE REPRESENTATIONS (FDD pages 63–72)
What This Means (2025 FDD)
According to Spray Net's 2025 Franchise Disclosure Document, the average estimated EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) for US businesses is $119,561, while the median is $111,566. For Canadian (CN) businesses, the average estimated EBITDA is $332,960 CAD, with a median of $318,115 CAD. These figures are based on data from 7 US businesses and 13 CN businesses.
It is important to note that these EBITDA figures are estimates based only on the disclosed and estimated expenses listed in the provided tables. They do not include all the costs a franchisee will incur in developing and operating their Spray Net franchise. The FDD explicitly states that these figures do not account for all potential expenses.
Prospective franchisees should be aware that the financial performance of Spray Net businesses can vary. The FDD recommends consulting with a financial advisor or accountant to discuss currency conversions (for Canadian businesses), financial projections, and applicable taxes. Additionally, the FDD advises caution regarding any financial performance information not included in Item 19 and encourages reporting any unauthorized representations to Spray Net's management and regulatory agencies.