Verified — real FDD extraction
Not found in the SBA Franchise Directory under this name — though SBA loans to its franchisees exist; verify eligibility with your lender
Metal Supermarkets
Other · independent · est. —
Metal Supermarkets is a small-quantity metals retailer selling cut-to-size steel, aluminum, and other metals with no minimum order. A franchisee operates a warehouse-style store with cutting equipment, serving maintenance departments, fabricators, machine shops, and hobbyists who need small amounts of metal quickly.
Metal Supermarkets net unit count grew +16.5% from 2023–2025 per its FDD Item 20.
New to franchising? Start here
A franchise is a business where you (the franchisee) pay a company (the franchisor) for the right to open and run a location using their brand and system — think a local Anytime Fitness or Taco John's owned by a small-business owner, not the corporation.
Before you can buy in, U.S. law requires the franchisor to give you a Franchise Disclosure Document (FDD) — a long legal filing covering its fees, finances, and history. The numbers on this page come straight from that document:
- Franchise fee — the one-time cost to buy in.
- Royalty — the ongoing cut of your sales you pay the franchisor.
- Item 20 — how many locations opened and closed, the basis for our verdict (from Proven & strong down to Distressed — or Too new to judge).
The verdict
Proven & strong
Distress
Enough units and history to judge, and the record is good: growing or stable units with clean exits by the standards of its disclosed record. The standout in the record: owners who leave mostly sell rather than fail.
Exit rate · latest year
0.0%
fiscal 2025, per Item 20
Cost to open
$398K–$671K
Item 7 total investment range
SBA loan defaults
13.0%
vs 14.8% avg across rated brands
Behind the verdict
the record, factor by factor · Item 20
3-yr trend · Item 20 Table 1
terminations + ceased-ops vs. all exits · Table 3
transfers vs. base · Table 3
actual vs. projected openings · Table 5
Item 19 disclosure + completeness
Systemwide units
2023–2025
Survival record
FDD Item 20 · outlet status by year
In fiscal 2025, 0 of 92 franchised outlets left the system — a 0.0% annualized exit rate. Not every exit is a failure — but this is the measurable floor.
Show the outlet tables ↓Hide the evidence ↑
| Status (FTC) | 2023 | 2024 | 2025 |
|---|---|---|---|
| Outlets at start | 84 | 85 | 93 |
| Opened | 4 | 11 | 6 |
| Transfers | 4 | 3 | 6 |
| Terminations | 0 | 0 | 0 |
| Non-renewals | 1 | 0 | 0 |
| Reacquired by franchisor | 0 | 0 | 0 |
| Ceased — other reasons | 1 | 2 | 0 |
| Outlets at end | 85 | 93 | 99 |
| Net change | +1 | +8 | +6 |
The lender's view
SBA 7(a)/504 loan performance · FY1991–present
Banks have made 81 SBA-backed loans to Metal Supermarkets franchisees since 1997. Of the 46 that have resolved, 13.0% were charged off (defaulted) rather than paid in full, versus 14.8% across 570 rated brands.
13.0%
6 of 46 resolved defaulted
46.0%
avg. charged-off $ ÷ approved $
6.0%
default rate × loss severity
$344,789
what recent franchisees borrowed
64 mo
approval → charge-off, defaulted loans
19 vs 12
distinct banks still lending
Charge-off rate by loan approval year (%)
Loan performance by state
SOURCE: SBA 7(a)/504 FOIA LOAN DATA (DATA.SBA.GOV), FY1991–PRESENT · MATCHED TO METAL SUPERMARKETS BY FRANCHISE NAME · RESOLVED = CHARGED-OFF + PAID-IN-FULL
What it costs — and what it drags
FDD Items 5–7 · fees, investment, royalty
Buying in means a $50K franchise fee (Item 5) and a total investment of $398K–$671K (Item 7). The franchisor publishes an earnings claim (Item 19) — read its methodology closely.
To open (Item 7)
$398K–$671K
all-in investment range
Franchise fee (Item 5)
$50K
upfront, one-time
Royalty (Item 6)
6%
of sales, ongoing
Your figure — cross-check against this brand's Item 19 and current-owner validation.
Royalty you'd pay / yr
$60K
6% of sales, before profit
Over a 10-yr term
$600K
royalties alone, excl. ad fund
This is not profit. It's the only money the FDD actually pins down — what you put in, and the royalty you owe on every dollar of sales. Your real take-home depends on labor, rent, food cost, and ramp-to-breakeven, none of which any FDD discloses.
Build a real pro-forma for Metal Supermarkets with an independent CPADistress signals
news-sourced · bankruptcies, closures, lawsuits
No recent closures, bankruptcies, or major lawsuits found in the news for Metal Supermarkets. That's a good sign — but it reflects news coverage, not a guarantee.
9 questions to ask a Metal Supermarkets franchisee
Built from this brand's own disclosures · take it to your validation calls
The franchisor will give you a list of owners to call. Most buyers ask whether they like it. These are the questions built from what Metal Supermarkets has actually disclosed — each one carries the number it came from, so you can tell whether the answer squares with the record.
- 01
6 units transferred to new owners in fiscal 2025. When you look at those, were they people cashing out a good business — or getting out of a bad one?
Transfers count as neutral in every ranking. They are the single easiest place to hide distress.
FDD Item 20 · FY2025
- 02
Of 46 SBA loans to Metal Supermarkets franchisees that have finished, 13.0% were charged off — the borrower didn't repay. Did you finance with an SBA loan, and how close did your first two years come to trouble?
This is the lender's view of failure, from public federal records, and it is independent of anything the franchisor discloses.
SBA 7(a)/504 loan record, FY1991–present
- 03
You pay 6.0% royalty on gross sales, plus the ad fund, before any of your own costs. On your actual revenue last year, what did you take home as the owner — not revenue, take-home?
Royalty is charged on sales, not profit. This is the number the brochure never shows and the one your life actually runs on.
FDD Item 6
- 04
Metal Supermarkets makes an earnings claim in Item 19. Does your unit look like that number — and do you know which units they included to build it?
Item 19 is legal to build from a flattering subset. Ask whether they excluded new units, closed units, or company stores.
FDD Item 19 · 2026
- 05
How many months did it take to cover your own costs, and how much cash did you burn getting there?
Ramp-to-breakeven working capital is the most underestimated line in any franchise purchase, and the most common reason otherwise-good units fail.
Not disclosed in any FDD — ask an owner
- 06
Item 3 discloses 1 legal matter. Do you know what those were about, and were any brought by franchisees?
Franchisee-brought suits over territory, fees or support tell you how the franchisor behaves when there's a disagreement.
FDD Item 3 · 2026
- 07
What does the franchisor charge for that you didn't expect — required tech fees, mandatory remodels, approved-supplier pricing?
Required spending appears across Items 6, 8 and 11 rather than in one place, so buyers routinely miss the total.
FDD Items 6, 8, 11
- 08
If your agreement came up for renewal tomorrow at current terms, would you sign again?
The single most predictive question you can ask. A hesitation is the answer.
Ask every owner you speak to
- 09
Who else should I call — including someone who left?
The franchisor's list is curated by definition. Former franchisees are where the unflattering truth lives, and current owners usually know how to reach them.
Ask every owner you speak to
Want this as a checklist you can take to the calls?
I'll email you the printable version, and tell you if Metal Supermarkets’ numbers move — a new filing, a rising exit rate, a distress signal. Unsubscribe in one click.
A broker is paid by the franchisor to place you. I'm paid by you — and the job is pressure-testing Metal Supermarkets's numbers, including talking you out of a bad deal.
This page is what buyers see before they call you for validation. If the record above is wrong — or right in a way the numbers can't show — say so. Corrections are checked against the filings; nothing you write is published with your name unless you agree to it.
Metal Supermarkets franchise questions, answered from the filings
What percentage of Metal Supermarkets franchises closed last year?
In Metal Supermarkets's latest FDD Item 20 (fiscal 2025), 0 of 92 franchised outlets left the system — an annualized exit rate of 0.0%. That counts terminations, non-renewals, and "ceased operations — other reasons." There is no official failure rate, and not every exit is a failure, but this is the measurable floor.
How much does a Metal Supermarkets franchise cost?
Per Metal Supermarkets's 2026 FDD, buying in requires an initial franchise fee of $50K (Item 5) and a total initial investment of $398K–$671K (Item 7).
What royalty does Metal Supermarkets charge?
Metal Supermarkets charges an ongoing royalty of 6.0% of gross sales, per Item 6 of its 2026 FDD.
Does Metal Supermarkets disclose earnings (Item 19)?
Yes — Metal Supermarkets makes a financial performance representation in Item 19 of its 2026 FDD, reporting a median unit volume of $1.9M. Read it closely: franchisors choose which units and which metrics to include.
How often do SBA loans for Metal Supermarkets franchises default?
Across 81 SBA-backed loans to Metal Supermarkets franchisees since 1997, 6 of the 46 that have resolved were charged off — a 13.0% default rate, versus about 14.8% across all rated franchise brands. This is the lender's-eye view of franchisee failure, drawn from public SBA 7(a)/504 FOIA data and independent of the franchisor's own disclosures.