What is the average estimated royalties (7% of Gross Sales) in CAD for Spray Net?
Spray_Net Franchise · 2025 FDDAnswer from 2025 FDD Document
| 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 |
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 royalties for Canadian (CN) businesses is $87,728 CAD. These royalties are calculated as 7% of gross sales. The median estimated royalties are $76,320 CAD.
It is important to note that these figures are estimates based on the performance of existing Spray Net CN businesses. The actual royalties a new franchisee will pay may vary depending on their gross sales. The FDD also notes that royalties are subject to minimum amounts, as detailed in Item 6 of the document.
Prospective franchisees should carefully review Item 6 of the FDD to understand the specific terms and conditions related to royalty payments, including any minimum requirements. It is also advisable to conduct thorough financial planning and consider various sales scenarios to estimate potential royalty obligations accurately. Consulting with a financial advisor is recommended to fully understand the financial implications of the Spray Net franchise opportunity.