Spray-NetFranchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
FranchiseVerdict summary · 2026
A Spray-Net franchise requires a total initial investment of $176K – $237K, including a $55K franchise fee and an ongoing 7.0% royalty[2]. Per the 2024 FDD, average unit revenue was $386K[2]. SBA 7(a) loans show a 41.7% charge-off rate across 38 loans[1]. Verdict grade: D. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2024 FDD issuance
Overview
- Investment
- $176K – $237K
- 66th pct Home Services
- Avg gross sales
- $386K
- 9th pct Home Services
- Royalty
- 7.0%
- 28th pct Home Services
- Units
- 26
- 31st pct Home Services
- SBA default
- 41.7%
- system-wide median varies by category
Quick verdict · Home Services · color = vs category peers
Green = >15% above Home Services 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
41.7% of SBA loans charged off across 38 loans, above the 16% franchise average.
29% cash-on-cash return (based on P&L Bottom Line). Within the 15-30% range most franchise investors consider acceptable.
Bottom line
- Total investment $176K – $237K including a $55K franchise fee, 7.0% ongoing royalty.
- Average unit revenue of $386K/year (median $313K), with an estimated 29% cash-on-cash return (based on P&L Bottom Line).
- Verdict D (Below Average) with a risk score of 75/100. SBA loan charge-off rate of 41.7% across 38 loans (well above the 16% franchise average, based on all SBA 7(a) franchise lending, 2010–2024).
- System growing at 136.4% CAGR over 3 years with 26 total units. Strong expansion trajectory.
Item 1 · who you're contracting with
The Franchisor
- Legal entity
- Spray-Net Inc.
- Parent company
- Spray-Net International, Inc.
- Incorporated in
- DE
- HQ
- 1490 De Coulomb Street, Boucherville, Québec, Canada J4B 7M2
- Auditor
- Muhammad Zubairy, CPA PC
- Audited financials
- Franchisor revenue
- $1.6M
- vs $2.6M prior year
Affiliated brands
- SN Franchisor Canada
Other brands the franchisor or its parent operates (Item 1).
Overview
About
Spray-Net franchisees operate mobile spray-applied coating services, likely applying protective or decorative coatings to vehicles, property, or industrial surfaces. Day-to-day operations involve managing spray equipment, serving scheduled client appointments, maintaining inventory, and handling logistics for mobile or location-based service delivery.
- CEO
- Carmelo Marsala
- Founded
- 2016
- FDD year
- 2024
- States available
- 15
FDD Item 7 · 2024 filing · 16 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| Franchise Feenot refundable | $55K | $55K | |
| Initial Training Feenot refundable | $15K | $15K | |
| Initial Marketing Investmentnot refundable | $20K | $30K | |
| Bookkeeping Service (Setup & First 3 Months)not refundable | $2K | $2K | |
| Business Management Software (First 3 Months)not refundable | $1K | $1K | |
| Equipmentnot refundable | $30K | $40K | |
| Pick-Up / Approved Vehicle Packagenot refundable | $3K | $8K | |
| Permits, Deposits, Business Licenses, Legal and Accounting Feesnot refundable | $2K | $4K | |
| Travel and Living Expenses during Initial Trainingnot refundable | $2K | $4K | |
| Insurancenot refundable | $4K | $6K | |
| Start-Up Packagenot refundable | $4K | $6K | |
| Computer Hardwarenot refundable | $1K | $2K | |
| Approved Vehicle - Lease Payments for 3 Monthsnot refundable | $0 | $3K | |
| Home Show Boothnot refundable | $6K | $8K | |
| Mobile Services Unitnot refundable | $2K | $15K | |
| Additional Funds for First 3 Monthsnot refundable | $30K | $40K | |
| Total initial investment | $176K | $237K |
Line items extracted from FDD Item 7. Ranges reflect the franchisor's stated low and high per line. Total is the sum of line-item lows / highs — actual costs may fall outside this range depending on market and build-out scope.
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
$35K
9.0% margin
Unlevered ROIC
14%
EBITDA / total invested capital
Payback
6.9 yrs
cash-on-cash, unlevered
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $176K – $237K
- Near category avg vs category
- Liquid capital req'd
- $30K – $40K
- Near category avg vs category
- Franchise fee
- $55K – $235K
- Near category avg vs category
- Royalty
- 7.0%
- Gross Sales or Minimum Gross Sales · typical 6–8%
- Ad fund
- 3.0%
- typical 3–5%
- Total fee load
- 10.0%
- vs 9–13% typical
- Payback period
- 3.4 yrs
- From FDD / Item 19
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 7.0% of gross sales |
| Marketing / ad fund | 3.0% of gross sales |
| Technology fee | $100 |
| Transfer fee | $10K |
| Renewal fee | $10K |
| Total fee load | 10.0% of rev |
Financial Performance
- Avg gross sales
- $386K
- Per unit, per year
- Median gross sales
- $313K
- Avg p&l bottom line
- $61K
- Reported as P&L Bottom Line in FDD Item 19
- Cash-on-cash
- 29.4%
- Based on P&L Bottom Line / investment midpoint
- Item 19 type
- Actual
- Sample size
- 7 units
- vs category median 25 · small
- Range (low → high)
- $241K→$751K
- Cohort dispersion (min → max)
- Transparency tier
- revenue_only
- Categorical assessment of disclosure depth
- Reporting year
- 2023
- Fiscal year the figures cover
- Transparency
- 9 / 5
- vs category median 4 / 5 · above
Compared against 349 Home Services brands
vs Home Services averages
How Spray-Net Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 26
- Opened
- 10
- Last reporting year
- Closed
- 10
- Turnover rate
- 38.5%
- Company-owned
- 0
- Corporate units in the system
- % franchised
- 100%
- vs corporate-owned
- Net growth (yr3)
- +0.0%
- Net unit change last year
- 3-yr CAGR
- +136.4%
- Compounded over last 3 years
3-year detail · Item 20
- Closed (3yr)
- 0
- Terminated (3yr)
- 2
- Non-renewed (3yr)
- 0
- Transfers (3yr)
- 0
- Reacquired (3yr)
- 0
- Franchisor bought back
- Termination rate
- 18.2%
- Franchisor-initiated terminations
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 18 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.
Available to sell in · Item 12
- Michigan
- South Dakota
States where the franchisor is registered to sell new franchises (FDD registration filings).
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
- Total loans
- 38
- Loan volume
- $6.2M
- Median loan
- $164K
- average
- Charge-off rate
- 41.7%
- 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)
- N/A
- 5-yr charge-off
- 41.7%
- Loans approved 2021+
- Active lenders
- 6
- Defaults
- 5
Explore lender portfolios on Bank Reports or regional data on State Reports.
A 41.7% charge-off rate means roughly 1 in 2 franchisees failed to repay their SBA loan. Investigate what changed.
Risk analysis
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Spray-Net presents elevated risk due to active litigation over disclosure adequacy, tiny stagnant unit count, going concern flag, and a royalty structure that may unsustainably compress margins for underperforming locations.
Litigation (Item 3)
0 case reference(s): 0 pending, 0 settled.
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Muhammad Zubairy, CPA PC
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Supplier relationship · Items 8 & 16
- Franchisor sells you products: No
- Must buy proprietary products: Yes
- Restricted to system-approved products: No
Score breakdown · what drove the 75 / 100 rating
- 01MINORActive arbitration alleging materially deficient Franchise Disclosure Document—suggests legal/transparency issues with franchisor
- 02MINOROnly 26 units system-wide with unknown growth trajectory—indicates stagnant or declining network; insufficient scale for support infrastructure
- 03HIGHGoing Concern status is FALSE—franchisor may have financial viability questions or accounting irregularities
- 04MINORHigh royalty floor structure (7% of Minimum Gross Sales regardless of actual revenue)—creates financial burden during slow periods and may explain 15.7% net margin compression
- 05MINORNo Item 19 financial performance representations—cannot independently verify if $60,723 average net income is achievable or representative
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 | Household count |
| Protected territory | Yes |
| Online sales rightsℹ | Restricted |
| 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 |
| Termination groundsℹ | 1 |
| Mandatory arbitration | No |
| Jury trial waiver | Yes |
| Governing law | Delaware |
| Litigation count | 1 |
View Item 3 litigation summary
0 case reference(s): 0 pending, 0 settled.
Items 10, 11
Training & Operations
- Classroom training
- 64 hrs
- On-the-job training
- 74 hrs
- Training location
- On-site and corporate
- Site selection
- franchisor
- POS system
- Spray-Network
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Spray-Network
Item 20 · call current owners
Franchisee Contacts
39 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
Spray-Net · FDD (2024) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Spray-Net franchise?
The total investment to open a Spray-Net franchise ranges from $176K – $237K, with an initial franchise fee of $55K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Spray-Net franchise owners earn?
According to Item 19 of the Spray-Net FDD, the average gross sales per unit is $386K. The median is $313K. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
What is Spray-Net's franchise failure rate?
Based on SBA 7(a) loan data, Spray-Net has a charge-off rate of 41.7% across 38 loans, meaning 41.7% 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 Spray-Net franchise locations are there?
As of their most recent FDD filing, Spray-Net has 26 total units in the United States, including 11 franchised units and 0 company-owned units. 10 new units were opened in the latest reporting year.
Is Spray-Net a good franchise to buy?
FranchiseVerdict rates Spray-Net as a D-grade franchise with a risk score of 75 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.