What was the median gross margin for Spray Net businesses?
Spray_Net Franchise · 2025 FDDAnswer from 2025 FDD Document
[Item 19: FINANCIAL PERFORMANCE REPRESENTATIONS]
| 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 | $1,257,056 | $1,090,285 | 60% | 92 |
| High | $2,985,551 | $2,794,680 | 69% | 100 |
| Low | $787,720 | $727,327 | 51% | 60 |
[Item 19: FINANCIAL PERFORMANCE REPRESENTATIONS]
| 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 |
[Item 19: FINANCIAL PERFORMANCE REPRESENTATIONS]
| 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 |
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).
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 varies depending on the location and operational history of the business. For US businesses open for 20 to 36 months as of December 31, 2024, the median gross margin was 53% across four businesses. For CN (Canadian) businesses open for 24 months as of December 31, 2024, the median gross margin was 54% across three businesses. For the thirteen CN businesses open for one year as of December 31, 2024, the median gross margin was 60%.
Additionally, the FDD provides median gross margins for CN and US businesses based on data from January 1, 2024, to December 31, 2024. For the seven US businesses, the median gross margin was 55.9%. For the thirteen CN businesses, the median gross margin was 59.9%.
These figures represent the midpoint of gross margins achieved by Spray Net franchisees in the US and Canada, providing a benchmark for potential profitability. However, it's important to note that these figures are based on past performance and may not be indicative of future results. A prospective franchisee should consider factors such as location, market conditions, and their own management skills when evaluating the potential for their own Spray Net franchise.
The FDD clarifies that "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). 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.