What is the average estimated royalty fee in USD for Spray Net, based on 7% of gross sales?
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. |
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 royalty fee for US businesses is $39,028 USD. This is based on 7% of gross sales, but is subject to minimum amounts as detailed in Item 6 of the FDD. The median estimated royalty is $34,542 USD.
For CN (Canadian) businesses, the average estimated royalty is $87,728 CAD, also based on 7% of gross sales and subject to minimum amounts described in Item 6. The median estimated royalty for CN businesses is $76,320 CAD. It is important to note that these figures are in Canadian dollars, and the exchange rate between USD and CAD can fluctuate.
A prospective Spray Net franchisee should carefully review Item 6 of the FDD to understand the specific minimum royalty amounts and how they might affect their business, especially if their gross sales are lower in the early stages. They should also consider the currency exchange rate if evaluating the performance of Canadian franchises.