Risk Score
Pending analysis
Investment Range
$323,540 - $545,240
Franchise Fee
$65,000
Total US Locations
38
Business Summary
Spray Foam Genie International, LLC offers a franchise for a business that provides residential and commercial spray foam insulation services. This includes specialized services like crawl space encapsulation, insulation for new construction and attics, different types of foam (open and closed cell, slow rise foam injection), and concrete lifting or leveling.
Corporate History
Spray Foam Genie International, LLC was officially formed as a Delaware Limited Liability Company on May 9, 2022, and began offering its franchises in October 2022. The foundation of the Spray Foam Genie franchise system, however, dates back to 2007 through its predecessor, APC Spray Foam, LLC, an Alabama company formed in 2015. APC Spray Foam, LLC, owned by co-founders Chris and Keith Ryan, operated a spray foam business in Birmingham, Alabama since 2007 and began operating under the Spray Foam Genie mark in February 2022. Spray Foam Genie International, LLC is part of a collective referred to as 'Phoenix Brands,' which includes affiliates like Fetch! Pet Care, Inc., Furry Cuts! Petmobile International, LLC, and Door Renew International, LLC, all operating under the management of current Chief Strategy Officer, Gregory Longe.
Financial Overview
Investment Range
$323,540 - $545,240
Franchise Fee (Low)
$65,000
Franchise Fee (High)
$190,000
Royalty %
6%
Marketing %
1%
Equipment Costs (Low)
$68,100
Equipment Costs (High)
$109,500
Working Capital
$77,500
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
Spray Foam Genie International, LLC received an unqualified audit opinion for its financial statements as of December 31, 2023, and 2022. However, the company reported a net loss of $1,168,946 for the year ending December 31, 2023, and had a significant accumulated deficit of $1,360,262 as of the end of 2023. The company also had negative working capital of $178,279 as of December 31, 2023, with current liabilities exceeding current assets. Its initial capitalization involved notes payable to members, and the company has substantial receivables from related parties totaling over $1.2 million as of December 31, 2023.
Financing Details
Spray Foam Genie International, LLC does not offer any direct or indirect financing to its franchisees. Additionally, it does not guarantee any notes, leases, or other obligations for its franchisees.
Performance Metrics
Total US Locations
38
Franchised Units
38
Corporate Units
0
Avg Square Footage
2,250
Franchising Since
2022
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
Yes
Litigation Count
7
Litigation Summary
Spray Foam Genie International, LLC has a legal history involving its Chief Strategy Officer, Gregory Longe, from a 2012 lawsuit against Collision on Wheels International, LLC (where he was Co-President and CEO). This case involved allegations of fraudulent transfers and other financial misconduct, but Mr. Longe settled his claim for less than $63,000, significantly lower than the initial claim of over $7,000,000, and was removed from the proceeding in 2013, with the case terminating in 2014. Additionally, an affiliate of Spray Foam Genie International, LLC, Fetch! Pet Care, Inc., faced six lawsuits between 2009 and 2011. These cases, involving its prior owners, related to selling unregistered franchises in states such as Maryland, California, Illinois, Rhode Island, Virginia, and Hawaii. Fetch! Pet Care, Inc. offered rescissions to affected franchisees and paid administrative fees or penalties in these instances. Spray Foam Genie International, LLC notes that these cases involving Fetch! Pet Care, Inc. arose from prior owners and did not impact its brand or current operations. All reported litigation predates the last three years from the FDD issuance date.
Bankruptcy History
Spray Foam Genie International, LLC's Chief Strategy Officer, Gregory Longe, was Co-President and Chief Executive Officer of Collision on Wheels International, LLC when that company filed for Chapter 7 bankruptcy in 2010. Mr. Longe was also listed as one of the two largest creditors in the case. The bankruptcy case for Collision on Wheels International, LLC was terminated in December 2014.
Agreement Terms
Initial Term
10 years
Renewal Term
10 years
Renewal Conditions
To renew their franchise agreement, Spray Foam Genie International, LLC franchisees must meet several conditions. These include ensuring the franchisor is still offering franchises at the time of renewal, providing written notice of their intent to renew between six months and one year before the current term ends, and not being in default under any existing agreements while having substantially complied with all terms. Franchisees must also refurbish their business, including equipment and vehicles, to meet current brand standards, sign the franchisor's then-current franchise agreement (which may have different terms), pay a $10,000 Successor Franchise Fee, sign a general release of claims (if permitted by state law), and satisfy all current qualification and training requirements.
Training & Support Program
Franchisor Assistance
Spray Foam Genie International, LLC provides extensive support to its franchisees. Before opening, Spray Foam Genie assists with site specifications for the required flex warehouse space and mobile vehicle, provides lists of designated and approved suppliers, outlines authorized products and services, and grants written approval to commence operations. Franchisees also receive up to three days of complimentary on-site opening assistance. For training, Spray Foam Genie offers a tuition-free initial program lasting up to 10 days, covering operational, financial, technical, sales, marketing, and reporting procedures, typically held at its Tuscaloosa, Alabama Technical Center. After opening, ongoing support includes providing updated standards, product and service listings, and optional additional training for replacement staff and managers. The franchisor may also organize annual conferences, offer optional consulting services through an affiliate for billing, collection, bookkeeping, and marketing, assist with client dispute resolution, and provide continuous advisory assistance on technical, operational, sales, personnel, and accounting matters. Additionally, Spray Foam Genie provides updates to its Operating Manual, reviews franchisee advertising materials, and recommends pricing for services.
Initial Training Hours
70
Training Location
Tuscaloosa, AL
Ongoing Support
After opening, Spray Foam Genie International, LLC provides franchisees with ongoing assistance and support. This includes maintaining and updating standards, specifications, and approved supplier lists, as well as providing updated listings of authorized products and services. The franchisor offers initial training for replacement staff and managers (which may incur a fee) and may provide additional and ongoing training programs, including an annual conference. Optionally, franchisees can engage an affiliate, Spray Foam Genie Managed Services LLC, for consulting services that include assistance with billing, fee collection, bookkeeping, accounting, and managing advertising and marketing programs. Spray Foam Genie may also investigate and resolve client disputes if a franchisee is unable to. Franchisees receive continuing advisory assistance on technical, operational, sales, personnel, and accounting issues, as well as updates to the Operating Manual, review of their advertising materials, and recommended pricing for products and services.
Franchise Requirements
Ideal Candidate Profile
Spray Foam Genie International, LLC is seeking franchisees who are capable of maintaining a designated full-time manager for their business. This manager, who could also be the owner, must be approved by the franchisor and dedicate their full time and energy to operating the franchised business, successfully completing the initial training program. If the owner chooses to operate as an Owner Operator or Semi-Absentee, they can also take on the roles of salesperson and/or General Manager. The business requires a full-time salesperson, especially if the franchisee opts for the voluntary Consulting Services from the franchisor's affiliate. All equity owners of the franchise must personally guarantee the franchisee's obligations.
Industry Experience Required
No
Management Experience Required
Yes
Sales Experience Required
Yes
Technical Skills Required
No
Operational Details
Location Type
Hybrid
Owner Participation
Semi-Absentee
Territory Type
Protected
Staff Count
5
Territory Size Requirements
Spray Foam Genie International, LLC defines its franchise territories as entire Designated Market Areas (DMAs), with the size determined by population. For instance, a DMA with a population between 150,000 and 524,999 requires one double proportioner rig. Larger populations necessitate additional rigs; for example, populations from 525,000 to 1,000,000 require two rigs, and this requirement scales up for every additional 500,000 people. Franchisees are required to add these additional rigs and vehicles according to a Rig Development Schedule tied to the population of their DMA.
Staffing Notes
Spray Foam Genie International, LLC requires franchisees to employ a sufficient number of competent, continuously trained staff to operate the business efficiently and at maximum capacity, adhering to the Operations Manual and franchisor standards. At all times, an employee who has completed the Initial Training Program must be clocked in. The franchisor's training program for the franchised business covers roles such as general manager, salespersons, and spray technicians. The Operations Manual provides detailed job descriptions for various roles, including Owner/Operator, Field Superintendent, Field Supervisor, Crew Member, and Client Services Administrator. Franchisees are responsible for recruitment, selection, and orientation processes, including conducting background reviews (criminal history, drug screening) for all prospective employees. Additionally, all employees and subcontractors must sign confidentiality and non-competition agreements to protect the Spray Foam Genie System's proprietary information.