What was the average 'Gross Margin' for US Spray Net Disclosed Businesses during 2024?
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 |
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 Gross Margin for US Disclosed Businesses during 2024 was 54.8%. This data is based on the financial performance of seven US businesses that operated for the entire 2024 calendar year and reported complete financial data to Spray Net.
The Gross Margin is defined as Gross Profit (Gross Sales (Production) less Labor and Paint costs) divided by Gross Sales (Production). For a Spray Net franchisee, a higher gross margin indicates greater efficiency in managing labor and paint costs relative to sales. This figure is crucial for understanding the profitability of each job and the overall financial health of the franchise.
It's important to note that this average is based on a subset of Spray Net's US franchisees and may not be representative of all franchisees. The FDD also provides the median (55.9%), low (47.2%), and high (61.9%) gross margins, offering a range of potential outcomes. Additionally, the document specifies that these figures do not include all costs a franchisee will incur, so further due diligence is essential to estimate overall profitability accurately.
Prospective franchisees should consider these figures as a benchmark and conduct their own market research and financial planning to determine the potential profitability of a Spray Net franchise in their specific location. They should also inquire about the factors that contribute to higher or lower gross margins and how Spray Net supports franchisees in optimizing their operational efficiency.