About Spray Foam Genie Franchise
Spray Foam Genie International, LLC offers franchises for businesses providing residential and commercial spray foam insulation services.
These services include crawl space encapsulation, new construction and retro attic insulation, open & closed cell foam, slow rise foam injection, and concrete lifting/leveling.
The target customers are residential and commercial property owners, builders, homeowners' associations, and property managers seeking energy-efficient insulation and restoration alternatives.
Spray Foam Genie Franchise Cost & Fees
| Fee Type | Amount | Notes |
|---|---|---|
| Initial Franchise Fee | $65,000 to $190,000 (plus $20,000 for each additional 500,000 in population above 2,500,000) | One-time payment upon signing |
| Royalty Fee | 6% of weekly Gross Revenue or minimum royalty payment ($175/week in Year 1, $249/week in Year 2, $415/week in Year 3 and after) of gross sales | Ongoing; paid monthly |
| Marketing/Ad Fund | Brand Development Fund Contribution: 1% of weekly Gross Revenue, with a minimum of $50 per week in Year One and $100 per week in Year 2 and beyond. Local Digital Advertising: A minimum of $2,500 per month for the first vehicle, plus an additional $1,000 per month for each additional vehicle. | National brand fund |
| Total Investment Range | $323,540 – $545,240 | Includes build-out, inventory, working capital |
The investment range of $324K–$545K reflects variability in build-out costs, store size, lease terms, and market. The combined royalty (6% of weekly Gross Revenue or minimum royalty payment ($175/week in Year 1, $249/week in Year 2, $415/week in Year 3 and after)) and marketing fee (Brand Development Fund Contribution: 1% of weekly Gross Revenue, with a minimum of $50 per week in Year One and $100 per week in Year 2 and beyond. Local Digital Advertising: A minimum of $2,500 per month for the first vehicle, plus an additional $1,000 per month for each additional vehicle.) are ongoing costs paid as a percentage of gross sales.
Investment Breakdown (Item 7)
| Item | Low | High |
|---|---|---|
| Initial Franchise Fee | $65,000 | $190,000 |
| Rent – 3 months | $12,000 | $20,000 |
| Leasehold Improvements, Construction and/or Remodeling | $2,000 | $5,000 |
| Utilities deposits | $1,000 | $1,500 |
| Furniture, Fixtures and Equipment | $17,000 | $20,000 |
| Trailer Rig Financing | $30,000 | $50,000 |
| Spray Guns (2) | $7,000 | $7,000 |
| Truck Lease (three months) | $5,100 | $25,000 |
| Initial Foam Purchase Inventory and Starter PPE | $60,000 | $70,000 |
| Insurance | $22,000 | $25,000 |
| Computer Equipment | $2,000 | $2,500 |
| Planning Software | $1,500 | $1,500 |
| SFG Software Setup Fee | $1,500 | $1,500 |
| SFG Monthly Software Fee (3 months) | $2,040 | $2,040 |
| Your Training Expenses | $1,500 | $10,000 |
| Business Licenses and Permits | $900 | $2,200 |
| Professional Fees | $1,000 | $2,000 |
| Grand Opening Advertising | $22,000 | $25,000 |
| Additional Funds – 3 months | $70,000 | $85,000 |
Additional Fees (Item 6)
| Fee Type | Amount |
|---|---|
| Transfer Fee | $10,000 |
| Renewal Fee | $10,000 |
| Technology Fee | Currently, $475 per month (subject to reasonable increase) |
| Audit Fee | Amounts owing plus interest at prime (as stated in the Wall St. Journal) plus 3% per year plus the cost of the audit in some circumstances. The range of cost for the audit is from $1,500 to $4,500 |
| Commercial Bidding Fee | 2.5% of Gross Revenue of Commercial Jobs only. |
| Late Fees | $100 per week |
| Interest | 18% per annum |
| Insurance | Amount of premium paid by, Spray Foam Genie, LLC plus 20% |
| Additional Training | $150 per day plus reasonable travel expenses |
| Interim Franchise Royalty Fees | Franchisor’s then-current Royalty Fee plus 3.5% |
| Relocation Fee | $1,000 |
| Step-In Right Expenses | 15% of gross revenue. |
| System Standard Violation | All costs of inspection and audit |
| Sales outside of Territory Fee | Up to 100% of any revenue generated from one client, and up to 300% of revenue generated from more than one client, from another franchisee’s Target Area. |
| Cost of Enforcement | Our actual costs, including attorney fees |
| Indemnification | Our actual costs, including attorney fees |
| Taxes | Amount of taxes |
| SFG Software Fee | Then current monthly fee, presently $545. |
| ACE Program | Then current-fee, currently $165/job, or second option of $2,250/mo for unlimited jobs & reporting each month |
| Rig Calibration Fee | $1,000 per rig |
| Annual SPFA Membership Fee | $250 per year |
| Sales Measuring Software Subscription | $300 per year |
Training Program (Item 11)
| Detail | Information |
|---|---|
| Total Duration | up to 10 days, depending on your existing experience level. |
| Classroom Training | 19 Hours |
| On-the-Job Training | 51 Hours |
| Training Location | currently held at our Tuscaloosa, Alabama Technical Center. However, we may hold the training at one of our other locations in the future. |
| Additional Training | We may offer mandatory and/or optional additional training programs from time to time. If we require it, you must participate in additional training, including attendance at a national business meeting or annual convention, at a location we designate. We reserve the right to impose a reasonable fee for all additional training programs, including the national business meeting or annual convention. You are responsible for any and all incidental expenses incurred by you and your personnel in connection with additional training or attendance at Franchisor’s national business. |
Territory Rights (Item 12)
| Detail | Information |
|---|---|
| Territory Type | Protected |
| Exclusive Territory | Yes |
| Territory Size | a Designated Market Area (“Market Area”) as defined by Nielsen Media research, with required rigs based on population (e.g., 150,000 to 524,999 for 1 rig, 525,000 to 1,000,000 for 2 rigs). |
| Description | Subject to the Franchise Agreement Terms, you are granted a protected territory (“Territory”) that is composed of a Designated Market Area (“Market Area”) as defined by Nielsen Media research. You may advertise, solicit, offer, accept orders, and sell within the Territory. You do not have the right to use other channels of distribution such as the internet, catalog sales, telemarketing, or other direct marketing, to make sales outside of your Territory unless we give you written consent to serve another specified area where no other Spray Foam Genie franchise or company-owned unit is located. |
Renewal, Termination & Transfer (Item 17)
| Detail | Information |
|---|---|
| Initial Term | 10 years from the date that we sign the Franchise Agreement. |
| Renewal Term | an additional term of 10 years |
| Renewal Fee | $10,000 |
| Renewal Conditions | Franchisor is still offering Franchises; Franchisee gives written notice (6 months to 1 year prior); Franchisee not in default and substantially complied with terms; Franchisee refurbishes business to conform to current trade dress/standards; Franchisee executes current form of franchise agreement and ancillary agreements; Franchisee signs general release (unless prohibited by law); Franchisee complies with current qualification and training requirements. |
| Transfer Fee | $10,000 |
| Transfer Conditions | All accrued monetary obligations satisfied; transferor's right to compensation subordinated to franchisor's rights; transferee executes general release (unless prohibited by law); transferee executes written assumption of obligations; transferee meets franchisor's educational, managerial, business, moral character, business reputation, and credit rating standards; transferee has adequate financial resources; transferee executes current franchise agreement and ancillary agreements; transferee completes initial training; transferor's right to payments from transferee subordinate to franchisor's claims. |
| Termination for Cause | Franchisor can terminate if franchisee breaches material obligations and fails to cure within 60 days. Specific defaults that cannot be cured or lead to immediate termination include: felony conviction/criminal misconduct; failure to secure site or open business within time limits; late payment (10+ days); multiple failures to submit reports/pay fees (2+ occasions in 12 months); default under other agreements with franchisor/affiliate; failure to meet Trailer Rig Development Schedule (6 consecutive months); failure to operate in full compliance with agreement/manual/standards; abandonment of business (2+ consecutive days); offering unauthorized products/services; operating outside territory; failure to meet System Standards in 2+ inspections (24 months); bankruptcy/insolvency; loss of premises; failure to comply with laws/regulations (10 days after notice); unauthorized transfer; seizure/foreclosure of business; unsatisfied final judgment (30 days); violation of restrictive covenants/confidentiality; conduct adversely affecting brand; knowingly maintaining false records/understating gross revenues (5%+ in 180 days); threat to public health/safety (uncured). |
| Non-Compete Period | during the term of the franchise and 5 years after termination/expiration |
| Non-Compete Details | During term: No involvement in a competing business; cannot assist or deal with a competing business; cannot infringe on another franchisee’s territorial rights. After termination/expiration: No involvement in a competing business for 5 years (i) at the Site; (ii) within the Territory; or (iii) within a twenty-five (25) mile radius of (a) the Territory or (b) any other Territory licensed by us as of the date of expiration or termination of the Franchise Agreement. |
Operations & Supply (Items 8 & 15)
| Detail | Information |
|---|---|
| Owner-Operator Required | Yes |
| Participation Details | You must maintain a designated full-time manager of the franchised business who is approved by us who devotes his/her full time and energy to the operation of the Franchised Business and successfully complete the Initial Training Program to our satisfaction. The designated on-site manager must sign a confidentiality, non-solicitation, and non-competition agreement. Additionally, you must hire a full-time salesperson for your territory as well if you elect to receive voluntary Consulting Services from our affiliate. If you chose to operate as an Owner Operator and/or Semi-Absentee, the Owner can choose to be the salesperson and/or General Manager. |
| Required Suppliers | You are required to purchase certain inventory, supplies and equipment from us, an affiliate or suppliers that we designate, including spray equipment, cleaning supplies, safety supplies, and any other products that we specify. Currently, you must purchase through us all spray foam necessary to operate the Franchised Business, as well as the Starter Kit and the SFG Software. |
| Supply Restrictions | For any product or service that we designate an approved supplier, you may not purchase these products and services from any other suppliers. Franchisees may not contract with alternative suppliers for designated products or services. |
| Franchisor Revenue from Suppliers | In our most recently concluded fiscal year ending December 31, 2023, neither we nor our affiliates received any such revenue. |
Financing (Item 10)
| Detail | Information |
|---|---|
| Financing Available | No |
| Description | We do not offer any direct or indirect financing. We do not guarantee your note, lease, or obligation. |
Spray Foam Genie Franchise Earnings — Item 19
Spray Foam Genie does not include an Item 19 financial performance representation in their FDD. Contact information for current and former franchisees is listed in Item 20 of the FDD.
Spray Foam Genie Litigation & Risk Flags
Litigation and bankruptcy data is sourced from Items 3 and 4 of the FDD. Always verify current status directly from the most recent FDD.
Spray Foam Genie System Growth
Spray Foam Genie currently operates 38 franchised locations and 0 company-owned units. Unit count data is sourced from Item 20 of the FDD.
Unit History (Item 20)
| Year | Opened | Closed | Total |
|---|---|---|---|
| 2021 | 0 | 0 | 0 |
| 2022 | 0 | 0 | 0 |
| 2023 | 38 | 0 | 38 |
Transfers: 2 | Closures: 0
State Registrations
Registered in 12 states: IL, IN, MD, MI, MN, NY, ND, RI, SD, VA, WA, WI
Franchisor Financials (Item 21)
Audited by Mattina, Kent & Gibbons, P.C. for year ending December 31.
Spray Foam Genie Franchise — FAQ
Similar Home Services Franchises
Interested in Spray Foam Genie?
Get free info on this franchise. We will send you a detailed FDD report by email.