Spray-Net Franchise Costs $171K - $402K (2024 Stats)

INVESTMENT

$171,000

-

$402,000

LOCATIONS

26

Adam

Updated

May 2, 2024

Is

Spray-Net

a franchise?

Yes,
Spray-Net
currently
accepts
franchise
applications

Spray-Net, a unique franchise in the home improvement sector, specializes in proprietary spray painting and coating services tailored for residential exteriors and interiors. Founded and incorporated in September 2016 under the laws of the State of Delaware, Spray-Net has established its headquarters in Boucherville, Quebec, Canada​​. The franchise stands out in the market with its innovative approach, offering an alternative to traditional renovation methods by delivering durable, factory-hard finishes that won't peel, backed by a 15-year NO-PEEL warranty.

This distinctive service not only looks brand-new but is also cost-effective, often being a fraction of the cost of replacement projects​​. Spray-Net offers a business model that combines low overhead costs with high revenue potential, thanks to its mobile operation that eliminates the need for a brick-and-mortar location. Franchisees benefit from multiple revenue streams, high average job sizes and margins, and a high sales-to-investment ratio. 

The franchise provides robust support to its franchisees through marketing, training, and a proprietary software system, the Spray-Network, which streamlines operations such as quoting, paint ordering, and job scheduling. This comprehensive support system, coupled with Spray-Net's unique service offering and competitive advantages, positions the franchise as a lucrative opportunity in the rapidly growing home-improvement industry​​​​.

How many

Spray-Net

franchises

are there?

In 2022, there were
26
outlets in
the United
States, of which
26
are franchises, and
0
are corporate-owned.

What are the

Spray-Net

franchise

fees?

Advertising fee

$40,000 per year

Initial Franchise Fee

The initial franchise fee for a Spray-Net franchise is set at $49,500. This fee is required to be paid as a lump sum upon the execution of the Franchise Agreement and grants the franchisee the right to operate a single Designated Territory.

Royalty Fee

Spray-Net franchisees are obligated to pay a weekly Royalty Fee equal to 7% of the Gross Sales generated by the franchisee's Franchised Business. This fee is a continual obligation meant to support the ongoing use of the Spray-Net brand and system.

Initial Marketing Investment

An Initial Marketing Investment ranging between $15,000 to $40,000 is required, depending on the number of Designated Territories purchased. This investment is aimed at boosting the visibility and initial customer engagement for the new franchise.

Transfer Fee

In the event of a franchise transfer, a fee of $10,000 is applicable. This fee is charged to cover the administrative and legal costs associated with evaluating and processing the transfer of the franchise agreement or ownership interest in the franchise.

Renewal Fee

For franchisees wishing to renew their franchise agreement, a Renewal Fee of $10,000 is required. This fee ensures the continuation of the franchise relationship under the updated terms and conditions of the new franchise agreement.

Management Fees

The management services provided by Spray-Net are covered within the Royalty Fee. However, franchisees utilizing the Sales Center for booking jobs are subject to an additional 5% fee on the job price for each booking made through the center.

Note: The fees presented here can be found in the Item 5 of the Franchise Disclosure Document. For a complete list of all the fees borne by the franchisee, please consult the Franchise Disclosure Document.

How much does

it cost

to start a

Spray-Net

franchise?

It costs between
$171,000
and
$402,000
to start a
Spray-Net
franchise.
Type of Expenditure Amount
Franchise Fee $49,500
Initial Training Fee $15,000 to $15,000
Initial Marketing Investment $20,000 to $30,000
Bookkeeping Service (Setup & First 3 Months) $1,775 to $1,775
Business Management Software (First 3 Months) $1,050 to $1,050
Equipment $30,000 to $40,000
Pick-Up / Approved Vehicle Package $3,000 to $7,500
Permits, Deposits, Business Licenses, Legal and Accounting Fees $2,000 to $3,500
Travel and Living Expenses during Initial Training $2,000 to $4,000
Insurance $3,500 to $6,000
Start-Up Package $4,000 to $6,000
Computer Hardware $1,000 to $2,000
Approved Vehicle – Lease Payments for 3 Months $0 to $2,500
Home Show Booth $6,000 to $8,000
Mobile Services Unit $2,000 to $15,000
Additional Funds for First 3 Months $30,000 to $50,000
TOTAL $170,825 to $241,825

Note: The table above provides a snapshot of the main costs associated with starting the most common franchise format (as disclosed in the Item 7 of the Franchise Disclosure Document). For a complete overview of all the expenses involved with the various formats offered by the franchisor, please consult the Franchise Disclosure Document.

Does

Spray-Net

provide

training

to its

franchisees?

Yes,
Spray-Net
provides
training

The franchisor provides comprehensive training to franchisees, which includes a variety of essential topics necessary for operating the franchise successfully. The training program encompasses several key areas:

Initial Training Program

Franchisees, along with their Designated Manager and up to one additional person, are required to attend and successfully complete the Initial Training Program before commencing operations. This program covers various aspects of the franchise operation, including sales, marketing, production, and management. The training program integrates both classroom instruction and on-the-job training within the designated territory or franchised business location.

Additional and Refresher Training

Franchisor may develop additional and refresher training courses to further enhance the skills and knowledge of franchisees, their Designated Manager, and any other SN Specialist. These courses are designed to ensure that franchisees stay updated with the latest operational practices, and may include up to two sessions per year, not exceeding seven total days, which may take place at the franchisor's designated training facility. Additionally, up to twenty-four hours of training may be provided via an online learning management system or other remote participation methods.

Remedial Training

If necessary, the franchisor may require franchisees to attend up to five days of remedial training. This is particularly relevant if the franchisee or any required personnel fail to sufficiently complete the Initial Training Program or any Additional Training, or if the franchisee fails to operate the franchise according to the terms of the Franchise Agreement after receiving written notice of such failure.

Third-Party Training

Franchisees may also be required to attend training programs conducted by approved suppliers. These programs are designed to provide further instruction and training on the operation of the franchise and the provision of certain approved services. The costs and expenses associated with attending such third-party training, including the Additional Training Fee, lodging, and travel, are the responsibility of the franchisee.

Does

Spray-Net

provides

territory

protection?

The franchisor does not offer an exclusive territory. As a franchisee, you may face competition from other franchisees, company-owned outlets, or other channels of distribution or competitive brands controlled by the franchisor.

While the franchisor commits not to establish another business using the proprietary marks and system within your designated territory as long as you comply with the Franchise Agreement, it reserves the right to establish alternate channels of distribution selling similar services and products, including e-commerce, Internet, mail order, or catalogs.

Under certain conditions, you may serve customers from outside your designated territory, provided they do not reside within the territory of another franchisee, unless you obtain that franchisee's consent. However, you are prohibited from soliciting or advertising within the territory of another franchisee without their consent​​​​.

Can a

Spray-Net

franchise

be run as

a passive

investment?

The franchisor requires personal participation in the actual operation of the Franchised Business. Specifically, if you are an individual, you and certain persons affiliated with you are mandated to attend and successfully complete the franchisor's training programs.

Under certain conditions and with prior approval from the franchisor, you may appoint a Designated Manager to manage the day-to-day operations of the Franchised Business. However, this appointment does not imply that passive investment is allowed, as active involvement and successful completion of training programs are prerequisites for operation​​.

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