What is the median estimated EBITDA in USD for Spray Net businesses?
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. | ||
| (Estimated Gross Profit less | |||||
| Disclosed Expenses | |||||
| Percentages and Estimated | |||||
| Expenses) | |||||
| USD | 21.4 % | 22.6 % |
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 EBITDA for US businesses is $111,566. This figure is based on data from 7 US businesses. It's important to note that this EBITDA is calculated by subtracting disclosed and estimated expenses from the estimated gross profit.
These figures include disclosed expenses such as marketing (15.9%), accounting, professional services & bank fees (1.7%), gas (1.1%), liability insurance (1.4%), office expenses (2.3%), meals & entertainment (0.3%), shipping (1.0%), and vehicle, vehicle insurance, & repairs (0.9%). Estimated expenses include royalties (7% of gross sales, or $34,542), business management software ($5,434), convention & regional meetings ($2,500), and a tech package ($300).
The FDD also clarifies that these figures only include the disclosed and estimated expenses listed in the table and do not encompass all costs a franchisee will incur. This means that the actual EBITDA could be lower once all operating costs are factored in. Prospective franchisees should carefully consider all potential expenses and consult with a financial advisor to develop realistic financial projections.
It is also important to note that the Canadian Spray Net businesses have a different median estimated EBITDA, calculated in Canadian dollars (CAD). Franchisees should pay close attention to which figures apply to US-based operations when reviewing the FDD and making financial assessments.