What was the highest 'Gross Margin' achieved by a Spray Net CN Business during 2024?
Spray_Net Franchise · 2025 FDDAnswer from 2025 FDD Document
| Gross Booking | Gross Sales (Production) USD | Gross Margin | Net Promoter | |
|---|---|---|---|---|
| USD | Score | |||
| Number of | 4 | 4 | 4 | 4 |
| Businesses | ||||
| Average | $469,436 | $442,678 | 53% | 84 |
| Median | $499,026 | $468,798 | 53% | 88 |
| High | $543,659 | $512,812 | 61% | 100 |
| Low | $336,036 | $320,304 | 47% | 62 |
| Number and | 2 (50%) | 3 (75%) | 2 (50%) | 3 (75%) |
| Percentage of | ||||
| Businesses that Met | ||||
| or Exceeded the | ||||
| Average | US Disclosed Businesses Open for 20 to 36 Months as of December 31, 2024 | |||
| Gross Booking USD | Gross Sales (Production) USD | Gross Margin | Net Promoter Score | |
| Number of | 3 | 3 | 3 | 3 |
| Businesses | ||||
| Average | $782,380 | $710,687 | 55% | 96 |
| Median | $749,294 | $676,409 | 54% | 97 |
| High | $1,044,040 | $962,190 | 62% | 100 |
| Low | $533,808 | $493,462 | 52% | 90 |
| Number and | 1 (33%) | 1 (33%) | 2 (66%) | 1 (33%) |
| Percentage of | ||||
| Businesses that | ||||
| Met or Exceeded | ||||
| the Average | CN Businesses Open for 24 Months as of December 31, 2024 | |||
| Gross Booking CAD | Gross Sales (Production) CAD | Gross Margin | Net Promoter Score | |
| Number of Businesses | 13 | 13 | 13 | 13 |
| Average | $1,438,626 | $1,253,259 | 61% | 89 |
| Median |
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 highest Gross Margin achieved by a Canadian (CN) Spray Net business that was open for at least one year as of December 31, 2024, was 69%. This figure represents the upper end of the range of gross margins reported by the 13 CN businesses analyzed in the FDD. The average Gross Margin for these businesses was 61%, while the median was 60%.
Gross margin is a key indicator of profitability, calculated as gross profit (gross sales less labor and paint costs) divided by gross sales. A higher gross margin indicates that a business is more efficient in managing its direct costs. For a Spray Net franchisee, achieving a high gross margin means more revenue is available to cover operating expenses and generate profit.
It's important to note that this figure is based on the performance of existing CN businesses and may not be indicative of future results for new franchisees. Factors such as location, market conditions, and the franchisee's management skills can all impact gross margin. The FDD also notes that the sizes of territories may vary, which could affect financial performance.
Prospective franchisees should carefully consider these figures in light of their own circumstances and conduct thorough due diligence before investing in a Spray Net franchise. Reviewing the complete Item 19 in the FDD and discussing these figures with existing franchisees can provide valuable insights.