Metal SupermarketsFranchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
FranchiseVerdict summary · 2026
A Metal Supermarkets franchise requires a total initial investment of $341K – $593K, including a $45K franchise fee and an ongoing 6.0% royalty[2]. Per the 2024 FDD, average unit revenue was $2.2M[2]. SBA 7(a) loans show a 8.6% charge-off rate across 70 loans[1]. Verdict grade: A. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2024 FDD issuance
Overview
- Investment
- $341K – $593K
- 33rd pct Retail
- Avg gross sales
- $2.2M
- 20th pct Retail
- Royalty
- 6.0%
- 17th pct Retail
- Units
- 85
- 24th pct Retail
- SBA default
- 8.6%
- system-wide median varies by category
Quick verdict · Retail · color = vs category peers
Green = >15% above Retail avg · No shading = within ±15% · Red = >15% below avg · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Each dollar invested generates 4.6x in gross revenue, well above the typical 1.5-2.5x range.
Franchising since 1987. Systems this mature have refined operations and brand recognition.
Bottom line
- Total investment $341K – $593K including a $45K franchise fee, 6.0% ongoing royalty.
- Average unit revenue of $2.2M/year (median $1.8M).
- Verdict A (Top Quintile) with a risk score of 33/100. SBA loan charge-off rate of 8.6% across 70 loans (near or below the 16% franchise average, based on all SBA 7(a) franchise lending, 2010–2024).
- System growing at 15.3% CAGR over 3 years with 85 total units. Strong expansion trajectory.
Item 1 · who you're contracting with
The Franchisor
- Legal entity
- Metal Supermarkets Franchising America Inc.
- Parent company
- MSKS IP, Inc.
- Incorporated in
- Ontario
- HQ
- 5399 Eglinton Avenue West, Suite 210, Toronto, Ontario, Canada M9C 5K6
- Auditor
- MNP LLP
- Audited financials
- Franchisor revenue
- $11.3M
- Most recent fiscal year
Overview
About
Metal Supermarkets franchisees operate retail-focused metal distribution centers selling steel, aluminum, brass, and specialty alloys to contractors, fabricators, and manufacturers. Day-to-day operations include managing inventory, processing orders, fulfilling local delivery requests, and building B2B customer relationships in protected territories.
- CEO
- G. Stephen Schober
- Founded
- 1985
- FDD year
- 2024
- States available
- 33
FDD Item 7 · 2024 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $45K | $45K |
| Working capital (3–6 mo) | $50K | $110K |
| Equipment, build-out, other | $246K | $438K |
| Total initial investment | $341K | $593K |
Source: Metal Supermarkets 2024 FDD, Items 5 and 7[2]. “Equipment, build-out, other” is computed as total minus disclosed line items above.
Single-unit · estimated
Returns at a glance
Indicative numbers using FDD Item 7 / Item 19 inputs and category-benchmarked cost ratios. Full single-unit, 25-unit portfolio, and LBO models (with every input editable to stress-test your own scenario) live on the financials page.
Store EBITDA · annual
$151K
7.0% margin
Unlevered ROIC
28%
EBITDA / total invested capital
Payback
3.6 yrs
cash-on-cash, unlevered
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $341K – $593K
- Better than avg vs category
- Liquid capital req'd
- $50K – $110K
- Better than avg vs category
- Franchise fee
- $45K – $45K
- Better than avg vs category
- Royalty
- 6.0%
- Gross Sales · 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 |
| Transfer fee | $23K |
| Renewal fee | $10K |
| Total fee load | 8.0% of rev |
Financial Performance
- Avg gross sales
- $2.2M
- Per unit, per year
- Median gross sales
- $1.8M
- Item 19 type
- gross_sales
- Sample size
- 55 units
- vs category median 49
- Range (low → high)
- $519K→$6.2M
- Cohort dispersion (min → max)
- Transparency
- 6 / 5
- vs category median 2 / 5 · above
Compared against 304 Retail brands
Revenue is 4.6x the investment midpoint. At typical franchise margins, this suggests a payback under 3 years.
vs Retail averages
How Metal Supermarkets Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 85
- Opened
- 4
- Last reporting year
- Closed
- 2
- Turnover rate
- 2.4%
- Company-owned
- 2
- Corporate units in the system
- % franchised
- 98%
- vs corporate-owned
- Net growth (yr3)
- +2.5%
- Net unit change last year
- 3-yr CAGR
- +15.3%
- Compounded over last 3 years
3-year detail · Item 20
- Transfers (3yr)
- 4
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.
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
- 8.6%
- 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
Vintage analysis
Metal Supermarkets charge-off rate by loan vintage
Explore lender portfolios on Bank Reports or regional data on State Reports.
Premium insight
SBA Lending Report
Deep-dive into Metal Supermarkets's SBA lending history: lender network, geographic footprint, interest rates, and more.
SBA Lending Report
- Principal loss rate and NAICS industry benchmark
- 10 lenders with concentration factor
- Per-state charge-off rates across 15 states
- Startup risk premium and job creation velocity
- 23-year lending trend
- SBA 504 real estate/equipment data
Instant access. No subscription.
Risk analysis
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
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.
Audited financials (Item 21)
Yes · MNP LLP
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Score breakdown · what drove the 33 / 100 rating
- 01MEDNo Item 19 (Average Unit Volume) disclosed — impossible to assess true profitability or ROI at $340K-$592K investment level
- 02MINORSlow unit growth (2.5% YoY) suggests market saturation or franchisee struggles in a mature 85-unit system
- 03HIGHActive litigation (D.N.J. 2022) alleging non-disclosure of supplier-competitor conflict indicates potential franchisor transparency issues and reputational risk
- 04MINORTiered royalty structure (6% → 5% → 3%) creates variable cost burden; low-revenue locations ($140K–$207K sales range) pay highest percentage
- 05MEDHigh initial investment ($340K–$592K) with no disclosed net income makes break-even analysis impossible for prospective franchisees
Severity inferred from the FDD text · not a regulatory classification
FDD Items 5, 6, 12, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 10 years |
|---|---|
| Renewal term | 10 years |
| Allowed renewalsℹ | 1 |
| Territory type | protected |
| Protected territory | Yes |
| Online sales rights | Granted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Required |
| Non-compete (years)ℹ | 2 years |
| Right of first refusalℹ | Yes |
| Termination notice | 30 days |
| Mandatory arbitration | No |
| Jury trial waiver | Yes |
| Governing law | New York |
| Litigation count | 1 |
Items 10, 11
Training & Operations
- Classroom training
- 40 hrs
- On-the-job training
- 105 hrs
- 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
FDD download
Metal Supermarkets · FDD (2024) PDF
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 $341K – $593K, 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 $1.8M. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
What is Metal Supermarkets's franchise failure rate?
Based on SBA 7(a) loan data, Metal Supermarkets has a charge-off rate of 8.6% across 70 loans, meaning 8.6% 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 85 total units in the United States, including 72 franchised units and 2 company-owned units. 4 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 risk score of 33 out of 100, based on our analysis of investment costs, revenue data, SBA loan performance, and growth trends. 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.
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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.