What is the median estimated royalties (7% of Gross Sales) in CAD for Spray Net?
Spray_Net Franchise · 2025 FDDAnswer from 2025 FDD Document
| 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 |
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 royalties for Canadian (CN) businesses is $76,320 CAD. These royalties are calculated as 7% of gross sales. However, the FDD also notes that these royalties are subject to minimum amounts, as detailed in Item 6 of the document.
This figure represents the midpoint of royalty expenses reported by Spray Net franchisees in Canada, meaning half of the franchisees paid more and half paid less. It's important to note that this is just an estimate based on past performance and does not guarantee future royalty expenses. A prospective franchisee's actual royalty expenses may vary depending on their gross sales and any applicable minimums.
Understanding the royalty structure is crucial for assessing the financial viability of a Spray Net franchise. Franchisees should carefully review Item 6 of the FDD to understand the specific minimum royalty requirements and how they might impact their profitability. Additionally, it would be prudent to discuss royalty obligations with existing franchisees to gain real-world insights into this expense.