What is the median estimated royalty fee in USD for Spray Net, based on 7% of gross sales?
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 |
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 royalty fee for US businesses is $34,542 USD. This is based on 7% of gross sales, but is subject to minimum amounts as detailed in Item 6 of the FDD.
For a prospective Spray Net franchisee, this means that based on the performance of existing franchisees, they could expect to pay approximately $34,542 in royalties annually. However, this is just an estimate based on past performance and is not a guarantee of future royalty fees. The actual amount may be higher or lower depending on the franchisee's gross sales.
It's important to note that this figure is based on data from seven US businesses that operated for the entire 2024 calendar year and reported complete financial data. The FDD also states that these figures only include the disclosed expenses and estimated expenses listed in the table and do not include all of the costs that a franchisee will incur in the development and ongoing operation of their franchised business. Therefore, a prospective franchisee should carefully review all of the expenses and fees outlined in the FDD and consult with a financial advisor before making a decision.
Furthermore, the FDD also provides estimated royalties for Canadian businesses, which are calculated in Canadian dollars. Prospective franchisees should pay close attention to whether the data presented applies to US businesses, Canadian businesses, or both, and be aware of currency exchange rates if comparing figures.