What was the median Gross Margin for the 13 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 |
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 Gross Margin for the 13 Canadian (CN) businesses analyzed was 60%. This data is based on CN businesses that were open and operating for at least one year as of December 31, 2024. The Gross Margin is calculated by subtracting labor and paint costs from gross sales (production) and then dividing by gross sales (production).
For a prospective Spray Net franchisee, this median gross margin provides a benchmark for potential profitability. It suggests that, on average, the example Spray Net businesses kept 60% of their gross sales after covering labor and paint expenses. However, it's important to note that this figure represents the median, meaning half of the businesses performed better and half performed worse. The actual gross margin for a new franchisee can vary depending on factors such as location, management skills, and local market conditions.
It is also important to note that the 13 businesses are Canadian Spray Net businesses. The FDD states that the sizes of territories may vary and there may be material differences between the size, geography, and demographics aspects of your Designated Territory(ies) as compared to those of the CN Businesses.
Prospective franchisees should carefully consider these factors and conduct thorough due diligence, including reviewing the complete Item 19 in the FDD and consulting with existing franchisees, to gain a more comprehensive understanding of the potential financial performance of a Spray Net franchise. Additionally, it's advisable to consult with a financial advisor to assess the viability of the franchise opportunity based on individual circumstances and financial goals.