What is the average estimated EBITDA in USD for Spray Net businesses?
Spray_Net Franchise · 2025 FDDAnswer from 2025 FDD Document
| 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 % |
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 for US businesses is $119,561. This figure is based on data from 7 US businesses. The estimated EBITDA is calculated by subtracting disclosed and estimated expenses from the estimated gross profit.
It's important to note that this EBITDA figure is based on a specific set of disclosed and estimated expenses listed in the FDD. These expenses include marketing, accounting/professional services and bank fees, gas, liability insurance, office expenses, meals and entertainment, shipping, vehicle-related expenses, royalties, business management software, convention and regional meetings, and a tech package. However, the FDD explicitly states that this list is not exhaustive and does not include all costs a franchisee will incur.
Therefore, a prospective Spray Net franchisee should carefully review the types of expenses included and excluded from this calculation. They should also consult with a financial advisor to develop a comprehensive financial projection that accounts for all potential costs, including those not listed in the FDD, such as utility and lease security deposits, leasehold improvements, permits and licenses, initial franchise fees, legal fees, accounting fees, and various tax liabilities.