What was the lowest reported gross margin for Spray Net businesses?
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 | $1,257,056 | $1,090,285 | 60% | 92 |
| High | $2,985,551 | $2,794,680 | 69% | 100 |
| Low | $787,720 | $727,327 | 51% | 60 |
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 lowest reported gross margin varies depending on the specific group of businesses analyzed. For US businesses open for 20 to 36 months as of December 31, 2024, the lowest gross margin was 47%. For CN businesses open for 24 months as of December 31, 2024, the lowest gross margin was 52%. When considering all CN businesses, the lowest gross margin reported was 50.8%, while for all US businesses, the lowest was 47.2%.
These figures represent the lowest end of the spectrum for gross margins achieved by Spray Net franchisees during the reported period. A prospective franchisee should recognize that achieving higher gross margins is crucial for profitability, as it indicates a greater percentage of revenue remaining after deducting the cost of labor and paint. Factors influencing gross margin can include efficient cost management, pricing strategies, and operational effectiveness.
It's important to note that these gross margin figures are based on data reported by a subset of Spray Net franchisees and may not be representative of all franchise locations. Additionally, the FDD specifies that these figures are historical and do not guarantee future performance. Currency differences also exist, as the CN businesses report in Canadian dollars, while the US businesses report in US dollars, which may impact comparisons.
A prospective Spray Net franchisee should carefully consider these figures in conjunction with other financial performance representations and conduct thorough due diligence, including consulting with existing franchisees and financial advisors, to assess the potential financial viability of a Spray Net franchise.