Verified — real FDD extraction
SBA-eligible · directory code S2684 since 2018
Spray-Net
Other · independent · est. —
Spray-Net is an exterior painting and coating franchise that applies factory-quality spray finishes to siding, brick, doors, and windows as an alternative to replacement. A franchisee operates a mobile, crew-based business with proprietary coating processes, selling exterior home revamp projects to homeowners.
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
Not enough disclosure
Distress
No verified FDD extraction to judge from. Any figures shown are labelled sample data or independent federal records.
Exit rate · latest year
Not disclosed
Cost to open
$247K–$305K
Item 7 total investment range
SBA loan defaults
31.3%
16 loans resolved — directional only
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
2013–2015
Survival record
FDD Item 20 · outlet status by year
In fiscal 2015, 0 of 0 franchised outlets left the system. Not every exit is a failure — but this is the measurable floor.
Show the outlet tables ↓Hide the evidence ↑
| Status (FTC) | 2013 | 2014 | 2015 |
|---|---|---|---|
| Outlets at start | 0 | 0 | 0 |
| Opened | 0 | 0 | 0 |
| Transfers | 0 | 0 | 0 |
| Terminations | 0 | 0 | 0 |
| Non-renewals | 0 | 0 | 0 |
| Reacquired by franchisor | 0 | 0 | 0 |
| Ceased — other reasons | 0 | 0 | 0 |
| Outlets at end | 0 | 0 | 0 |
| Net change | 0 | 0 | 0 |
The lender's view
SBA 7(a)/504 loan performance · FY1991–present
Banks have made 44 SBA-backed loans to Spray-Net franchisees since 2021. Only 16 have resolved so far — too thin for a reliable default rate, but 5 of them charged off.
—
16 resolved · too thin to rate
—
avg. charged-off $ ÷ approved $
—
default rate × loss severity
$167,368
what recent franchisees borrowed
25 mo
approval → charge-off, defaulted loans
—
distinct banks 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 SPRAY-NET BY FRANCHISE NAME · RESOLVED = CHARGED-OFF + PAID-IN-FULL
The owner's side of the deal
FDD × federal loan record
Who finances it
United Midwest Savings Bank National Association
43.2% of this brand's loans
That lender charges off 35.0% of its loans to other franchise brands, vs 14.8% nationally.
Who buys it
51.4%
first-time franchise owners
The rest already owned at least one other franchise. Across the corpus, brands bought mostly by repeat operators charge off at roughly 10% versus 17% for brands sold mostly to newcomers.
Does experience help here?
Not enough resolved loans to split
Computed from 44 SBA 7(a)/504 loans to Spray-Net franchisees joined to the brand's own FDD. Debt service assumes level amortization at the average disclosed term and rate. A lender's rate excludes its loans to this brand, so it reads the lender, not the brand.
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 $247K–$305K (Item 7). The franchisor publishes no earnings claim (Item 19) — ask current and former franchisees for real numbers.
To open (Item 7)
$247K–$305K
all-in investment range
Franchise fee (Item 5)
$50K
upfront, one-time
Royalty (Item 6)
7%
of sales, ongoing
Your figure — this brand discloses no Item 19 earnings; validate with current & former owners.
Royalty you'd pay / yr
$70K
7% of sales, before profit
Over a 10-yr term
$700K
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 Spray-Net with an independent CPADistress signals
news-sourced · bankruptcies, closures, lawsuits
No recent closures, bankruptcies, or major lawsuits found in the news for Spray-Net. That's a good sign — but it reflects news coverage, not a guarantee.
6 questions to ask a Spray-Net 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 Spray-Net has actually disclosed — each one carries the number it came from, so you can tell whether the answer squares with the record.
- 01
You pay 7.0% 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
- 02
Spray-Net’s FDD makes no financial performance representation at all — legally, they've told buyers nothing about earnings. What did your first 24 months actually look like, month by month?
When a franchisor won't publish numbers, existing owners are the only source. Silence in Item 19 is a choice, not a requirement.
FDD Item 19 · 2017
- 03
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
- 04
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
- 05
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
- 06
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 Spray-Net’s 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 Spray-Net'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.
Spray-Net franchise questions, answered from the filings
How much does a Spray-Net franchise cost?
Per Spray-Net's 2017 FDD, buying in requires an initial franchise fee of $50K (Item 5) and a total initial investment of $247K–$305K (Item 7).
What royalty does Spray-Net charge?
Spray-Net charges an ongoing royalty of 7.0% of gross sales, per Item 6 of its 2017 FDD.
Does Spray-Net disclose earnings (Item 19)?
No — Spray-Net's 2017 FDD makes no financial performance representation in Item 19. That is legal and common, but it means the franchisor publishes no earnings claim; ask current franchisees for real numbers.