Spray-Net Franchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
Analysis by FranchiseVerdict Research · Methodology
Spray-Net is a home services franchise that spray-paints and coats exterior surfaces like siding, brick, and windows for a factory-like finish. Franchisees run mobile operations, managing sales, crews, and on-site application.
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]. FranchiseVerdict grade: D (Below average), an editorial assessment, not investment advice. Run a live ROI scan →
Data last verified · figures per the 2024 FDD issuance
Overview
- Investment
- $176K – $237K
- 73rd pct Home Services
- Avg gross sales
- $386K
- Outlet subset6th pct Home Services
- Royalty
- 7.0%
- 34th pct Home Services
- Units
- 26
- 33rd pct Home Services
- SBA charge-off
- 41.7%
- % of SBA 7(a) loans not repaid · median varies by category
Quick verdict · Home Services · color = vs category peers
Green = favorable by >10% vs Home Services avg · 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 $176K – $237K including a $55K franchise fee, 7.0% ongoing royalty.
- RETURNSAverage unit revenue of $386K/year (median $313K) (reported for a subset of outlets rather than the whole system), with an estimated 16% cash-on-cash return (based on Estimated EBITDA (Estimated Gross Profit less Disclosed Expenses Percentages and Estimated Expenses) USD). Note: this is gross profit, not take-home income.
- RISKVerdict D (Below average), verdict score 31/100 (higher is better). 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, 2010–2025).
- GROWTHSystem growing at 136.4% CAGR over 3 years with 26 total units. Strong expansion trajectory.
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- Spray-Net Inc.
- Parent company
- Spray-Net International, Inc. (SN International)
- Ultimate parent
- Groupe Spray-Net, Inc.
- CEO title
- Chief Executive Officer
- Carmelo Marsala
- Incorporated in
- Delaware
- HQ
- 1490 De Coulomb Street, Boucherville J4B 7M2, Quebec, Canada
- 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
- CEO
- Carmelo Marsala
- Founded
- 2016
- FDD year
- 2024
- States available
- 15
Can you afford it, and what does the money buy?
Entry cost runs 8% below the typical home services franchise.
Source: FDD 2024 · Items 5–7
Full Item 7 breakdown16 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.
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $176K – $237K
- Bottom third — review vs category
- Liquid capital req'd
- $30K – $40K
- Middle of category vs category
- Franchise fee
- $55K – $55K
- Middle of category 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
- 6.2 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 |
What do units actually make?
Average unit sales run 69% below the home services norm.
Reported for a subset of outlets rather than the whole system
Source: FDD 2024 · Item 19
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
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
FDD-reported earnings vs. model
The FDD reports $61K as Estimated EBITDA (Estimated Gross Profit less Disclosed Expenses Percentages and Estimated Expenses) USD. Our model estimates $35K SLEBITDA from the same revenue using category-average cost assumptions. These numbers differ because Estimated EBITDA (Estimated Gross Profit less Disclosed Expenses Percentages and Estimated Expenses) USD deducts different expense categories than our model.
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. The target band for an attractive franchise is 30–60% ROIC. Below that and a passive index fund likely outperforms; above that and the franchisor has pricing power you're subsidizing.
Note: Item 19 revenue is what the franchisor discloses. It's the top line only. Operating costs below are category estimates. Override them to match your real lease quote, labor market, and build-out budget.
Returns model · single-unit ROIC
What would one Spray-Net unit return on the cash you put in?
Unlevered ROIC · per unit
Estimated return on your total franchise investment, before any debt financing.
14%
Below the 30–60% attractive-franchise band
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%.
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
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: 2024 FDD
Financial Performance
Reported for a subset of outlets rather than the whole system
- Avg gross sales
- $386K
- Per unit, per year
- Median gross sales
- $313K
- Avg estimated ebitda (estimated gross profit less disclosed expenses percentages and estimated expenses) usd
- $61K
- Reported as Estimated EBITDA (Estimated Gross Profit less Disclosed Expenses Percentages and Estimated Expenses) USD in FDD Item 19
- Cash-on-cash
- 16.2%
- Based on Estimated EBITDA (Estimated Gross Profit less Disclosed Expenses Percentages and Estimated Expenses) USD / investment midpoint
Gross sales are revenue before expenses — not profit. Actual owner earnings depend on rent, labor, royalties, marketing fees, and debt service.
- Item 19 type
- gross sales
- Sample size
- 7 outlets
- vs category median 32 · 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
- Source filing
- FDD 2024
- Disclosed in the 2024 filing, covering 2023
- Transparency
- 9 / 10
- vs category median 4 / 10 · above
Compared against 321 Home Services brands
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 $386K/year in gross sales. Median is $313K — top performers pull the average up, so a typical unit earns less. Revenue-to-investment ratio: 1.9x. Reported for a subset of outlets rather than the whole system.
Fee burden
Total ongoing fee load of 10.0% (near the Home Services average).
Disclosure
Transparency score 9/10 — this franchisor discloses detailed breakdowns (quartiles, segments, or cohort data). Buyers can model unit economics with higher confidence.
Operator retention
System expanding at 136.4% CAGR over 3 years across 26 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 Home Services averages
How Spray-Net Compares
Is the system healthy?
Source: FDD 2024 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 26
- Opened
- 10
- Last reporting year
- Closed
- 0
- Turnover rate
- 0.0%
- Company-owned
- 0
- Corporate units in the system
- % franchised
- 100%
- vs corporate-owned
- Net growth (3-yr)
- +136.4%
- Net unit change over 3 years
- 3-yr CAGR
- +136.4%
- Compounded over last 3 years
3-year detail · Item 20
- Opened (3yr)
- 0
- 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).
Fast growth in a small system. Newer franchisors expanding quickly may not yet have the support infrastructure of larger systems.
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
Vintage analysis
Spray-Net charge-off rate by loan vintage
Top lenders financing Spray-Net franchisees
Showing 3 of 6 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.
Premium insight
SBA Lending Report
Deep-dive into Spray-Net's SBA lending history: lender network, geographic footprint, interest rates, and more.
SBA Lending Report
- Principal loss rate and NAICS industry benchmark
- 6 lenders with concentration factor
- Per-state charge-off rates across 17 states
- Startup risk premium and job creation velocity
Instant access. No subscription.
A 41.7% charge-off rate means roughly 1 in 2 franchisees failed to repay their SBA loan. Investigate what changed.
What could kill this investment?
SBA loans charge off at 41.7% — 160% above the 16.0% national norm, i.e. higher 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
One pending arbitration in which a former Canadian franchisee alleges a materially deficient FDD and seeks rescission/damages; the franchisor is defending. Otherwise sound: no going-concern, no bankruptcy, audited, Item 19 disclosed, strong unit growth (+136%) on 26 units.
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 31 / 100 verdict
- 01MINOR1 pending arbitration (FDD-deficiency/rescission claim)
- 02MINORNo going-concern, no financial distress
- 03MEDNo net worth disclosed but revenue $1,807,479
- 04MEDAudited, Item 19 disclosed
Severity inferred from the FDD text · not a regulatory classification
What are you signing up for?
Ongoing fees run about 10.0% of sales (royalty + ad fund), before rent and labor.
Source: FDD 2024 · 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 | 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. Important context: Reported for a subset of outlets rather than the whole system. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
What is Item 19 in the Spray-Net 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 Spray-Net FDD and qualifies whose outlets they describe.
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 26 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 verdict score of 31 out of 100 (higher is better), 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.
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.