What is the median estimated annual cost for the Business Management Software for a Spray Net franchise?
Spray_Net Franchise · 2025 FDDAnswer from 2025 FDD Document
ported performing at least ten (10) Interior jobs. The "Average" is the average of all of the Average Job Size reported by each Business during the 2024 Calendar Year.
| 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 | ||||||
| Estimated Business | $7,3 33 | $6,9 26 | One year. See Item 6 ($350/month + 0.25% of Gross Sales) | |||
| Management Software CAD | ||||||
| Estimated Convention & | $2,500 | $2,500 | One year. See Item 6 | |||
| Regional Meetings CAD | ||||||
| Estimated Tech Package CAD | $300 $75,196 | $300 $65,417 | 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 pay 6% Sales Commissions. | |||
| Estimated EBITDA | $332,960 | $318,115 | 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. | |||
| (Estimated Gross Profit less | ||||||
| Disclosed Expenses | ||||||
| Percentages and Estimated | ||||||
| Expenses) | ||||||
| CAD | 26.6% | 29.2% | # Section III Average Gross Sales (Production) and Certain Disclosed and Estimated Expenses from CN and US Businesses January 1, 2024 to December 31, 2024 |
The chart in this Section III includes actual Gross Sales (Production) data and certain Disclosed Expenses and Estimated Expenses. The Gross Sales (Production) in this Section III is the actual amount that the thirteen (13) CN Businesses and seven (7) US Businesses experienced between January 1, 2024 and December 31, 2024 (see Section I). "Estimated Gross Profit" in this Section III is estimated by multiplying the applicable Gross Sales (Production) (average, median, low, high) by the applicable Gross Margin (average, median, low, high). As used in this Section III, the term "Gross Margin" means a particular business's Gross Profit (Gross Sales (Production) less Labor and Paint costs divided by the business's Gross Sales (Production).
The Disclosed Expenses in this Section III are percentages derived from the CN Businesses and US Businesses that reported certain data to us between January 1, 2024 and December 31, 2024. Not all of the CN Businesses and US Businesses reported financial data to us for each category in these charts, so the column labeled "# Reported" discloses the number of Businesses that reported that particular category of Disclosed Expenses.
| 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. |
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 median estimated annual cost for Business Management Software for Canadian businesses is $6,926 CAD, while for US businesses, it is $5,434 USD. These figures are based on data from 13 Canadian businesses and 7 US businesses that were open and operating between January 1, 2024, and December 31, 2024.
For a prospective Spray Net franchisee, this means budgeting approximately $6,926 CAD or $5,434 USD annually for the Business Management Software. However, these are median estimates, and the actual cost could vary. Item 6 of the FDD indicates that this cost is comprised of $350 per month plus 0.25% of Gross Sales.
It's important to note that these figures are estimates and do not include all potential costs associated with operating a Spray Net franchise. The FDD explicitly states that these figures only include the disclosed and estimated expenses listed in the table and do not encompass all costs a franchisee will incur. A prospective franchisee should consider these estimates as a baseline and conduct thorough due diligence to determine all potential expenses. Consulting with a financial advisor is strongly recommended to assess the financial implications and ensure accurate budgeting.
Furthermore, the FDD notes that the Gross Sales for CN Businesses are disclosed in Canadian Dollars because that is how the sales were reported. The currency exchange rate between USD and CAD is constantly fluctuating, so Spray Net encourages prospective franchisees to review these figures in light of the current exchange rate when they are disclosed with the Disclosure Document and when they purchase franchise rights.