Bottom line
- Total investment $176K – $237K including a $55K franchise fee, 7.0% ongoing royalty.
- Average unit revenue of $386K/year (median $313K). Estimated payback in 3.4 years.
- Rated STRONG with a risk score of 52/100. SBA loan default rate of 0.0% across 76 loans (below the industry average).
- 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
Yale framework · single-unit ROIC
Returns Analysis
Pulls Item 7 (investment) and Item 19 (revenue) from this brand's FDD into the Yale unlevered-ROIC formula. Override any input to stress-test it against your own assumptions.
The model · Yale framework
What would one Spray-Net unit return on the cash you put in?
Unlevered ROIC · per unit
14%
Below typical band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 Spray-Net units return on equity?
Equity IRR · 5-yr
49.9%
7.57× MOIC
Year-1 DSCR
1.88×
EBITDA ÷ debt service
Equity required
$154K
on $772K purchase
Total debt
$618K
SBA $0.4M + senior + seller note
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.
Item 7 · what it costs
The Vitals
Item 19
Financial Performance
Item 20 · unit dynamics
The Growth Chart
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 23 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 phone area codes (Item 20). Approximate — ported numbers may show the original state, not the franchisee's current location.
Government records
SBA Loan Data
Aggregated from SBA 7(a) loan disclosures, public data unique to FranchiseVerdict.
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.
Score breakdown · what drove the 52 / 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
Item 11
Training & Operations
Item 20
Franchisee Contacts
Phone numbers extracted directly from this brand's FDD Item 20. After purchase, you'll also receive a list of validation questions tailored to this brand.
Franchisee contacts
39 numbers
One-time purchase · CSV download · Validation questions included
FDD download
Spray-Net · FDD (2024) PDF