Metal Supermarkets Franchise Cost, Revenue & Review 2026
- Investment
- $398K – $671K
- Disclosed sales
- $2.2M
- gross sales, not profit
- SBA charge-off
- 14.3%
- on 70 loans
Data from FDD filing + SBA 7(a) records
Analysis by FranchiseVerdict Research · Methodology
Metal Supermarkets is a B2B retail franchise selling small quantities of metals, steel, aluminum, and more, with cutting and processing, to trades and manufacturers. Franchisees run a metal store-and-warehouse serving contractors and fabricators, with no minimum order.
FranchiseVerdict summary · 2026
A Metal Supermarkets franchise requires a total initial investment of $398K – $671K, including a $45K franchise fee and an ongoing 6.0% royalty[2]. Per the 2026 FDD, average unit revenue was $2.2M[2]. SBA 7(a) loans show a 14.3% charge-off rate across 70 loans[1]. FranchiseVerdict grade: A (Strongest tier), an editorial assessment, not investment advice. Run a live ROI scan →
Sources, dates and evidence
FDD issued: · Data extracted: · Last cited check: · Staleness risk: low - issued within the last 12 months
Evidence: strong✓ Investment (Item 7)✓ Item 19 status✓ Units and owners (Item 20)✓ SBA loan coverage✓ Litigation (Item 3)✓ Financial statements (Item 21)✓ Franchisor identityhow this is scored7 of 8 headline figures on this page cite a page of the filing; the rest are marked “Not cited” beside the figure.
Overview
- Investment
- $398K – $671K
- 39th pct Retail
- Avg gross sales
- $2.2M
- 18th pct Retail
- Royalty
- 6.0%
- 20th pct Retail
- Units
- 99
- 29th pct Retail
- SBA charge-off
- 14.3%
- % of SBA 7(a) loans not repaid · median varies by category
Quick verdict · Retail · color = vs category peers
Green = favorable by >10% vs Retail median · No shading = within ±10% · Red = unfavorable by >10% · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Bottom line
- COSTTotal investment $398K – $671K including a $45K franchise fee, 6.0% ongoing royalty.
- RETURNSAverage unit revenue of $2.2M/year (median $1.9M).
- RISKVerdict A (Strongest tier), verdict score 85/100 (higher is better). SBA loan charge-off rate of 14.3% across 70 loans (above the 16% franchise average, based on all SBA 7(a) franchise lending, 2010–2025).
- GROWTHPositive: net +6 franchised outlets in the latest year (6 opened, 0 closed); 11 signed but not yet open (Item 20).
- GROWTHSystem growing at 18.1% CAGR over 3 years with 99 total units. Strong expansion trajectory.
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- Metal Supermarkets Franchising America Inc.
- Parent company
- MSKS IP (2024) Inc.
- Ultimate parent
- MSKS IP (2024) Inc. (subsidiary of MSKS, controlled by Metal Supermarkets CA Buyer, Inc. and Riverarch Equity Partners investment funds)
- Predecessor
- Metal Supermarkets Franchising America Inc. (Prior MSFA); Metal Supermarkets Service Company Inc.; Metal Supermarkets Franchising Corporation
- Prior franchisor entity
- CEO title
- President and Chief Executive Officer
- J. Ryan Pryznyk
- Incorporated in
- Ontario
- HQ
- 5399 Eglinton Avenue West, Suite 210, Toronto, Ontario M9C 5K6, Canada
- Auditor
- MNP LLP
- Audited financials
- Franchisor revenue
- $19.5M
- vs $17.5M prior year
Overview
About
- CEO
- J. Ryan Pryznyk
- Headquarters
- Ontario, Canada
- FDD year
- 2026
- States available
- 33
Can you afford it, and what does the money buy?
Entry cost runs 59% above the typical retail franchise.
Source: FDD 2026 · Items 5–7
FDD Item 7 · 2026 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $45K | $45K |
| Working capital (3–6 mo) | $60K | $120K |
| Equipment, build-out, other | $293K | $506K |
| Total initial investment | $398K | $671K |
Source: Metal Supermarkets 2026 FDD, Items 5 and 7[2]. “Equipment, build-out, other” is computed as total minus disclosed line items above.
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $398K – $671K
- Top 40% of category vs category
- Liquid capital req'd
- $60K – $120K
- Middle of category vs category
- Franchise fee
- $45K – $45K
- Top 40% of category vs category
- Royalty
- 6.0%
- Tiered by sales volume · typical 6–8%
- Ad fund
- 2.0%
- typical 3–5%
- Total fee load
- 8.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 6.0% of gross sales |
| Marketing / ad fund | 2.0% of gross sales |
| Technology fee | $110 |
| Transfer fee | $4K |
| Renewal fee | $10K |
| Inventory (initial) | $60K – $100K |
| Total fee load | 8.0% of rev |
What do units actually make?
Average unit sales run 173% above the retail norm.
Source: FDD 2026 · Item 19
Single-unit · not modelled
Returns at a glance
An FDD discloses gross sales, not profit, and the operating costs that turn one into the other are in no filing. We publish no modelled return for Metal Supermarkets until someone supplies them — yours, in the models below.
—
Not modelled yet
An FDD discloses gross sales, not profit. We hold no sourced figure for COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
Total invested capital · disclosed
$624K
Item 7 initial investment plus working capital, as filed — the one figure here that needs no assumption.
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
What one unit earns on your invested capital
Model A · Single-Unit Return
Computes unlevered return on invested capital (ROIC) for a single franchise unit, read against the 30–60% reference band · Yale SOM, Post-MBA Path Exhibit 2 (2023). Below that band a passive index fund likely outperforms; above it the franchisor has pricing power you're subsidizing.
Note: Item 19 revenue is what the franchisor discloses, and it is the top line only — gross sales are not profit. No FDD discloses the operating costs that turn one into the other, so those fields start empty and nothing is modelled until you supply them from your own lease quote, labor market and build-out budget.
Returns model · single-unit ROIC
What would one Metal Supermarkets unit return on the cash you put in?
Illustrative category typicals — not sourced to any filing, survey or sample. Replace them with figures from franchisee validation calls before you rely on the output.
Unlevered ROIC · per unit
Your modelled return on total invested capital, before any debt financing.
—
An FDD discloses gross sales, not profit. We hold no sourced figure for COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
What 25 units return when you use SBA financing
Model B · Return on Equity: Debt-Financed Acquisition
Models a 25-unit portfolio acquisition financed with an SBA 7(a) loan. Shows equity IRR (your return on cash invested), DSCR (how safely the cash flow covers debt service), and the capital stack (SBA + seller + equity breakdown).
This is the “search fund” or “entrepreneurship through acquisition” scenario: you buy an existing multi-unit operator, use leverage to amplify returns, and either operate or hire management. The 25-unit size is the typical minimum for an SBA-backed franchise portfolio acquisition to pencil as a full-time income.
What “return on equity” means here: if you put in $500K of your own cash and the business generates enough EBITDA to pay down debt and grow, your equity IRR is the annual return on that $500K, including the value created when you eventually sell. Target IRR for a search fund is typically 25–35%.
Not modelled yet
An FDD discloses gross sales, not profit. We hold no sourced figure for COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
A 25-unit return is built on a per-unit EBITDA. Fill in the operating costs in Model A above and this model runs on that figure, or take the whole scenario to the full ROI workbench, where the portfolio and LBO models accept your own per-unit economics directly.
These models are for research and scenario planning only. Not investment advice. Actual results depend on your specific location, management, and market conditions. Consult a franchise attorney and accountant before signing any franchise agreement.
Item 19 · Source: 2026 FDD
Financial Performance
- Avg gross sales
- $2.2M
- Per unit, per year
- Median gross sales
- $1.9M
Gross sales are revenue before expenses — not profit. Actual owner earnings depend on rent, labor, royalties, marketing fees, and debt service.
- Item 19 type
- historical gross sales average/median/high/low per store (Table 1), plus average invoice value (Table 4) and average gross margin/gross profit (Table 5), all for FY2022-FY2025, based on 64 franchised stores operating the full four-year period
- Sample size
- 64 outlets
- vs category median 46
- Range (low → high)
- $857K→$6.5MCited, not corroborated — printed on page 54 of the 2026 FDD. Nothing else in our record independently restates or re-derives it.
- Cohort dispersion (min → max)
- Reporting year
- 2025
- Fiscal year the figures cover
- Source filing
- FDD 2026
- Disclosed in the 2026 filing, covering 2025
- Transparency
- 6 / 10
- vs category median 3 / 10 · above
Compared against 278 Retail brands
Revenue is 4.1x the investment midpoint. At typical franchise margins, this suggests a payback under 3 years.
Operator outlook
What the numbers say
Data-driven interpretation of this brand's financial disclosures, fee structure, and system trajectory.
Unit economics
Average unit generates $2.2M/year in gross sales. Revenue-to-investment ratio: 4.1x.
Fee burden
Total ongoing fee load of 8.0% (near the Retail median).
Disclosure
Transparency score 6/10 — this franchisor discloses detailed breakdowns (quartiles, segments, or cohort data). Buyers can model unit economics with higher confidence.
Operator retention
System expanding at 18.1% CAGR over 3 years across 99 units — operators are staying and new ones are joining.
Source: FDD Item 19 financial performance representations and publicly filed FDD data. Past performance is not indicative of future results. Verify all figures with the franchisor and current franchisees before making any investment decision.
vs Retail medians
How Metal Supermarkets Compares
Category median of published Retail brands that report the figure; the middle half spans the 25th to 75th percentile and n counts the brands behind it. Medians are used because a few very large systems pull an average far from the typical brand. Revenue is disclosed gross sales, not profit.
Is the system healthy?
Source: FDD 2026 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 99
- Opened
- 6
- Last reporting year
- Closed
- 0
- Terminated
- 0
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 0
- Term expired, not renewed (per Item 20)
- Turnover rate
- N/A
- Company-owned
- 1
- Corporate units in the system
- % franchised
- 99%
- vs corporate-owned
- Net growth (3-yr)
- +18.1%
- Net unit change over 3 years
- 3-yr CAGR
- +18.1%
- Compounded over last 3 years
Last fiscal year · Item 20 exits and transfers
- Terminated
- 0
- Not renewed
- 0
- Reacquired
- 0
- Franchisor bought back
- Signed, not yet open
- 11
- 0.11 per open outlet · Item 20 Table 5
- Projected new
- 14
- Franchisor's next-year forecast
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 21 states with active franchisees
The Territory Map
Derived from franchisee contact records. Shows states with at least one current operator. Not where the franchisor is registered to sell new units (that data is re-extracting in a future refresh).
States derived from franchisee contact records (FDD Item 20). Shows states with at least one current operator on file. Full state registration data (Item 12) will appear on a future FDD refresh.
Where the owners are · Item 20 owner list
96 current owners across 21 states.
- FL 14
- IL 11
- IN 7
- NJ 7
- OH 7
- GA 6
- CA 5
- CO 5
- KS 4
- KY 4
- MD 4
- NC 4
- +9 more states
Counts only, from the list the franchisor prints in Item 20; 1 entries carry no state. Names and phone numbers are for your own due diligence and are not shown here.
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
- Total loans
- 70
- Loan volume
- $18.4M
- Median loan
- $175K
- 50th percentile
- Charge-off rate
- 14.3%
- on 70 loans · rates vary by category · see methodology
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- 85.7%
- 5-yr charge-off
- 0.0%
- Loans approved 2021+
- Active lenders
- 39
- Defaults
- 6
- Typical loan rate
- 7.0%
- avg rate to borrowers
- vs industry
- 14.3%
- brand is above its industry ↑
- Jobs supported
- 297
- 1.6 per loan
- Lender concentration
- 10%
- top lender's share
Borrower mix: 86% went to startups / new businesses, 14% to established operators
Vintage analysis
Metal Supermarkets charge-off rate by loan vintage
Top lenders financing Metal Supermarkets franchisees
Showing 3 of 39 lenders. The full breakdown — every lender, state distribution, interest rates & risk ratings — is in the SBA Lending Report below.
Explore lender portfolios on Bank Reports or regional data on State Reports.
Lender network · 7(a) + 504
SBA Lending Report
Full lending analysis for Metal Supermarkets from SBA 7(a) FOIA data.
- Principal loss rate
- 2.4%
- Avg SBA guarantee
- 69%
- Avg interest rate
- 7.03%
- Avg chargeoff amount
- $73K
- Lender concentration
- 10.0%
- Job velocity
- 1.6 per $100K
- NAICS benchmark
- 14.3%
- NAICS 423510
- Jobs supported
- 297
Top SBA lendersTop lender holds 10% of loans
| # | Lender | Loans | Volume | Default % |
|---|---|---|---|---|
| 1 | The Huntington National Bank | 7 | $1.5M | 0.0% |
| 2 | Manufacturers and Traders Trust Company | 5 | $940K | 0.0% |
| 3 | PNC Bank, National Association | 4 | $455K | 0.0% |
| 4 | Wells Fargo Bank National Association | 4 | $572K | 33.3% |
| 5 | Bank Five Nine | 3 | $485K | 100.0% |
| 6 | Stearns Bank National Association | 3 | $616K | 0.0% |
| 7 | Horizon Bank | 3 | $450K | N/A |
| 8 | Bank of America, National Association | 2 | $500K | 0.0% |
| 9 | Capital One, National Association | 2 | $1.3M | 50.0% |
| 10 | Celtic Bank Corporation | 2 | $1.0M | 0.0% |
Geographic failure vector
| State | Loans | Defaults | Rate |
|---|---|---|---|
| NYNew York | 6 | 0 | 0.0% |
| TXTexas | 6 | 1 | 33.3% |
| WIWisconsin | 6 | 3 | 75.0% |
| INIndiana | 5 | 0 | 0.0% |
| OHOhio | 5 | 0 | 0.0% |
| CTConnecticut | 4 | 0 | -- |
| FLFlorida | 4 | 0 | 0.0% |
| NCNorth Carolina | 4 | 0 | 0.0% |
| GAGeorgia | 3 | 0 | 0.0% |
| MIMichigan | 3 | 0 | 0.0% |
SBA 7(a) lending trend
Borrower profile
Source: SBA 7(a) + 504 FOIA loan-level data, matched by FranchiseVerdict
What could kill this investment?
SBA loans charge off at 14.3% — 11% below the 16.0% national norm, i.e. lower lender-observed risk.
Source: SBA 7(a) FOIA · FDD Items 3, 21
Risk analysis
FranchiseVerdict rating + FDD Items 3, 4, 8, 16, 21
Risk & Legal
Mature, slow-growing system with undisclosed profitability data, active litigation over franchisor disclosure practices, and high investment barrier relative to transparent performance metrics.
Litigation (Item 3)
Subject: the franchisor is a named party (defendant).
Minnebo et al. v. Prior MSFA et al. (W.D.N.Y., Case No. 1:24-cv-00418-LV): former New Jersey franchisee and owner alleged fraud, negligent misrepresentation, breach of contract, and franchise-statute/deceptive-trade-practices violations related to non-disclosure of a competing supplier, seeking damages exceeding $1,000,000; settled May 8, 2026 with Prior MSFA paying plaintiffs $180,000, both sides denying wrongdoing.
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · MNP LLP
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Financials expressed in Canadian dollars (CAD); fiscal year ended September 30, 2021 (yr1) and September 30, 2020 (yr2)
Supplier relationship · Items 8 & 16
- Franchisor sells you products: Yes
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
- Can negotiate own supplier terms: No
Score breakdown · what drove the 85 / 100 verdict
- 01MINORSlow unit growth (2.5% YoY) suggests market saturation or franchisee struggles in a mature 85-unit system
- 02HIGHActive litigation (D.N.J. 2022) alleging non-disclosure of supplier-competitor conflict indicates potential franchisor transparency issues and reputational risk
Severity inferred from the FDD text · not a regulatory classification
What are you signing up for?
Ongoing fees run about 8.0% of sales (royalty + ad fund), before rent and labor.
Source: FDD 2026 · Items 11, 12, 17
FDD Items 12, 15, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 10 years |
|---|---|
| Renewal term | 10 years |
| Allowed renewalsℹ | 1 |
| Territory type | Protected territory |
| Protected territory | Yes |
| Exclusive territoryℹ | No |
| Online sales rightsℹ | Granted |
| Franchisor can compete | No |
| Hire a manager? | Allowed |
| Owner-operator | Optional |
| Non-compete (years)ℹ | 2 years |
| Non-compete (miles)ℹ | 10 mi |
| Right of first refusalℹ | Yes |
| RoFR response window | 30 days |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Mandatory arbitration | No |
| Arbitration location | Washington, D.C. |
| Jury trial waiver | Yes |
| Governing law | New York |
| Litigation count | 1 |
View Item 3 litigation summary
Minnebo et al. v. Prior MSFA et al. (W.D.N.Y., Case No. 1:24-cv-00418-LV): former New Jersey franchisee and owner alleged fraud, negligent misrepresentation, breach of contract, and franchise-statute/deceptive-trade-practices violations related to non-disclosure of a competing supplier, seeking damages exceeding $1,000,000; settled May 8, 2026 with Prior MSFA paying plaintiffs $180,000, both sides denying wrongdoing.
Items 10, 11
Training & Operations
- Classroom training
- 74 hrs
- On-the-job training
- 155 hrs
- Training location
- A location selected by franchisor, which may include franchisee's store; classroom portion typically conducted at franchisor's head office in Toronto, Ontario, Canada, or online, plus time at a designated US Metal Supermarkets store and at franchisee's own store
- Ongoing training
- Required
- Time to open
- 9 mo
- From signing to launch
- Site selection
- franchisor approves franchisee-proposed site within pre-agreed Protected Area
- Franchisor financing
- Not offered
- Item 10
- POS system
- MetalTech
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: MetalTech
Item 20 · call current owners
Franchisee Contacts
97 owners to call
Name · phone · city · state. Extracted from FDD Item 20
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Metal Supermarkets franchise?
The total investment to open a Metal Supermarkets franchise ranges from $398K – $671K, with an initial franchise fee of $45K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Metal Supermarkets franchise owners earn?
According to Item 19 of the Metal Supermarkets FDD, the average gross sales per unit is $2.2M. The median is $1.9M. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
Who owns Metal Supermarkets?
Metal Supermarkets is franchised by Metal Supermarkets Franchising America Inc.. Its parent company is MSKS IP (2024) Inc.. The ultimate parent named in the FDD is MSKS IP (2024) Inc. (subsidiary of MSKS, controlled by Metal Supermarkets CA Buyer, Inc. and Riverarch Equity Partners investment funds). Source: FDD Item 1, 2026 filing.
What is Item 19 in the Metal Supermarkets FDD?
The FDD section where a franchisor may disclose financial performance of its outlets. Disclosure is optional and formats vary; figures are typically gross sales, which is revenue before expenses, not profit. FranchiseVerdict extracts these figures directly from the Metal Supermarkets FDD and qualifies whose outlets they describe.
What is Metal Supermarkets's franchise failure rate?
Based on SBA 7(a) loan data, Metal Supermarkets has a charge-off rate of 14.3% across 70 loans, meaning 14.3% of franchise loans were charged off. Charge-off rates are one proxy for franchise risk, though they do not capture all closures. This data comes from FOIA-sourced SBA lending records.
How many Metal Supermarkets franchise locations are there?
As of their most recent FDD filing, Metal Supermarkets has 99 total units in the United States, including 98 franchised units and 1 company-owned units. 6 new units were opened in the latest reporting year.
Is Metal Supermarkets a good franchise to buy?
FranchiseVerdict rates Metal Supermarkets as a A-grade franchise with a verdict score of 85 out of 100 (higher is better). The grade is a deterministic score built from six weighted dimensions — financial health, unit economics, unit growth, scale, legal, and transparency — then calibrated against SBA loan charge-off rates and FDD age. Transparency is one of the six, so a filing that discloses less scores lower on that dimension than one that discloses more. Our rating is based solely on publicly available FDD and government data; we recommend speaking with current franchisees before making any investment decision. This is not investment advice.
Data sourced from public FDD filings and SBA 7(a) FOIA records. Not financial advice.
For franchisors
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Data extracted from public FDD filings and SBA 7(a) loan disclosures (FOIA). This information is provided for research purposes only and does not constitute financial, legal, or investment advice. Verify all figures with the franchisor's current Franchise Disclosure Document before making any investment decision.