A reasonable per-Territory scenario for an actively involved 101 Mobility owner is about $119,000 to $214,000 in annual pre-tax owner-operator benefit. That includes both an estimated $13,000 to $108,000 business residual and the market value of full-time general-management work performed by the owner. The base scenario is approximately $155,000 of owner-operator benefit, including about $49,000 of business residual.
The strongest same-brand evidence is sales data, not profit data. Item 19 reports 2025 Sales, jobs, and revenue per job for full-year franchised businesses, while Items 6 and 15 define recurring fees and the required full-time Operating Principal role.
Pre-tax benefit combining the base business residual with owner labor value.
Estimated operating residual after normal payroll, recurring franchise fees, and modeled fixed fees.
Third-performing quartile median per-Territory Sales for 2025.
The Item 19 cohort comprised 53 owners operating 155 full-year Franchised Businesses.
Modeled effective tiered Royalty Fee plus the current 2% Marketing Fee at base revenue.
May 2025 national median annual wage for General and Operations Managers.
What does the 2026 Item 19 actually measure?
Officially, Item 19 measures 2025 Sales and job activity—not owner earnings, Operating Profit, EBITDA, Net Income, cash flow, salary, or distributions. The disclosure covers 53 franchisees operating 155 Franchised Businesses for the full 2025 calendar year. It ranks the franchisees into four performance quartiles and reports per-Territory and per-franchisee results. Source: 2026 101 Mobility Franchise Disclosure Document, Item 19, pp. 35–38.
“Sales” means revenue reported through the MOBILINK system on which Royalty Fees were paid. Per-Territory Sales were calculated by dividing each franchisee’s annual Sales by the number of Territories that franchisee operated, then ranking franchisees—not 155 independently ranked outlets. Sales from certain surrounding unassigned areas were included. A 2025 Territory Redesign also changed the year-end Territory denominator.
| 2025 performance group | Franchisees | Median per-Territory Sales | Average per-Territory Sales |
|---|---|---|---|
| First quartile | 13 | $1,494,214 | $1,680,896 |
| Second quartile | 13 | $944,454 | $946,370 |
| Third quartile | 13 | $621,848 | $626,764 |
| Fourth quartile | 14 | $341,660 | $318,390 |
Median 2025 Sales within each Item 19 franchisee quartile; higher-performing group first.
Interpretation: the first-quartile median was more than four times the fourth-quartile median. Revenue variability is therefore a larger driver than any small change in the model’s expense assumptions.
Source: 2026 101 Mobility Franchise Disclosure Document, Item 19, pp. 36–38. These are Sales figures, not earnings. Quartiles are descriptive groups, not probabilities of future performance.
How is the owner-earnings range calculated?
The estimated range is calculated by applying a specialty health-and-personal-care retail operating-margin proxy to three official revenue anchors, then deducting the disclosed recurring fees. The result is a residual after normal payroll. A BLS general-management wage is then added only to show the value an active owner may capture by performing that work.
All figures in the proxy formula are billions of dollars except the percentages. The 17.6% central operating-margin proxy is an independent residual calculation from published 2022 Census Annual Retail Trade Survey figures: health and personal care stores less pharmacies and drug stores. Using reported Sales, Gross Margin percentages, and Operating Expenses produces an analytical non-pharmacy residual—not a Census-published mobility-dealer margin. The source values are rounded, and the subtraction-derived category should not be attributed to the Census Bureau as a published estimate. The model applies a three-percentage-point sensitivity band because the category is broader than 101 Mobility’s equipment, installation, rental, and service mix.
| Scenario | Official revenue anchor | Estimated operating residual | Estimated combined owner amount |
|---|---|---|---|
| Conservative | $341,660 | $13,000 | $119,000 |
| Base | $621,848 | $49,000 | $155,000 |
| Upside | $944,454 | $108,000 | $214,000 |
Stacked annual pre-tax owner-operator benefit by scenario, rounded to the nearest $1,000.
Interpretation: most of the conservative owner-operator benefit compensates the owner for full-time management work. The operating remainder becomes a more meaningful share only as revenue and operating margin rise.
Sources: 2026 FDD Item 19 revenue anchors and Item 6 fees; 2022 Census Annual Retail Trade Survey; May 2025 BLS national median wage for General and Operations Managers. Totals exclude personal income taxes, financing interest, and debt principal.
- Revenue: conservative, base, and upside use the fourth-, third-, and second-quartile median per-Territory Sales. They are analytical anchors, not predicted probabilities. The first-quartile median is shown as official context but is not used as the upside case.
- Operating margin: 14.6%, 17.6%, and 20.6% before 101 Mobility’s modeled fees. The central margin is the Census residual calculation; the plus-or-minus three percentage points is an editorial sensitivity assumption.
- Royalty Fee: calculated using the disclosed 7%, 6%, and 5% Sales tiers. Actual effective rates can differ because the FDD administers rates by Territory, inside-Territory Sales, prior-year thresholds, and outside-Territory Sales.
- Marketing and fixed fees: the model deducts the current 2% Marketing Fee, $1,500 annual Technology Fee, and $4,200 annual midpoint for the disclosed $300–$400 monthly call-answering service. It does not add the currently unimplemented Shared Services Program.
- Local advertising: normal advertising is assumed to be embedded in the Census operating-expense proxy. Any 101 Mobility Local Marketing requirement above that embedded amount reduces the residual dollar-for-dollar.
- Accounting treatment: the Census operating-expense measure includes payroll and depreciation but excludes interest. The estimate is before financing interest, debt principal, personal income taxes, and unmodeled capital expenditures.
How does full-time owner involvement change the economics?
Full-time owner involvement is central to this model, so the larger $119,000–$214,000 figure includes compensation for work—not passive business profit. Item 15 requires an individual owner to serve as Operating Principal, exert full-time best efforts, and directly supervise the Franchised Business. The official U.S. franchise page likewise says the system seeks dedicated, full-time owner operators. Source: 2026 FDD, Item 15, pp. 29–30.
- Estimated operating residual
- The modeled $13,000–$108,000 remaining after normal operating expenses, payroll, Royalty Fees, the Marketing Fee, and selected recurring charges. It is before interest, debt principal, and personal taxes.
- Estimated active-owner total
- The operating residual plus $105,770, the May 2025 BLS national median annual wage for General and Operations Managers. This labor component pays for work performed; it is not passive profit or a franchisor-reported salary. OEWS wages exclude employer-paid benefits, so a fully loaded local manager cost may be higher.
- Manager-supported ownership
- If the owner remains full-time but hires an additional general manager, the owner should not automatically add the full BLS wage to the residual. The added payroll and benefits would reduce the amount available for draw or distributions.
- After-tax take-home pay
- Not estimated. Entity structure, state and local taxes, deductions, owner payroll treatment, and individual circumstances can materially change after-tax cash.
Which fees and operating costs matter most?
Product gross margin, technician and sales labor, and recurring percentage fees are the largest earnings levers. Item 6 imposes a tiered Royalty Fee and current 2% Marketing Fee; Item 8 says about 90% of ongoing purchases and leases are expected to be subject to sourcing restrictions. That makes actual equipment acquisition cost and rebate treatment a major unresolved variable. Sources: 2026 FDD, Items 6 and 8, pp. 5–18.
| Recurring obligation | 2026 FDD term | Scenario treatment |
|---|---|---|
| Royalty Fee | 7% up to $500,000; 6% above $500,000 through $1 million; 5% above $1 million | Tiered calculation by scenario revenue |
| Minimum Royalty Fee | Up to $5,400 per quarter from the ninth full operating quarter | Not added because modeled percentage royalties exceed the annual minimum |
| Marketing Fee | Currently 2% of Gross Sales; may rise to 4% | Current 2% deducted |
| Local Marketing | Up to 2% of Gross Sales | Assumed within benchmark advertising; incremental spend lowers earnings |
| Technology Fee | Currently $125 per month per Territory; maximum $500 | $1,500 annually deducted |
| Call answering, lead, and scheduling service | $300–$400 monthly, plus possible per-minute charges | $4,200 annual midpoint deducted; usage charges excluded |
How much uncertainty should a buyer place around the range?
Uncertainty is substantial, so the evidence-confidence rating is LIMITED. The current Item 19 supplies strong same-brand revenue distribution data but no expense or profit disclosure. The earnings model therefore depends materially on an older, broader government category and a national wage benchmark.
- Item 19 population: per-Territory figures are derived from franchisee portfolios. A multi-Territory operator’s shared office, warehouse, vehicles, managers, and overhead may not behave like a new single-Territory business.
- Territory Redesign: the FDD states that 2025 redesign activity materially changed Franchise Agreement and Territory counts. Item 19 uses year-end Territory counts, which can alter per-Territory Sales without a matching change in customer demand.
- Geographic scope: disclosed Sales may include permitted work in surrounding unassigned areas. Those Sales may disappear if another franchisee later receives that Territory.
- Benchmark fit: the Census residual excludes pharmacies but still combines optical and other health-and-personal-care retailers. It does not isolate stairlifts, ramps, elevators, rentals, installation labor, VA work, or 101 Mobility supplier economics.
- System movement: Item 20 reports franchised outlets declined from 178 at the start of 2025 to 164 at year-end, while 10 transfers occurred. A buyer should ask for a written reconciliation of redesigns, closures, terminations, non-renewals, and transfers.
- Owner labor: the BLS value is a national employee wage, not an owner salary, local market quote, or guarantee that an owner can remove an equivalent manager position.
The FTC Franchise Rule Compliance Guide explains why financial performance information should be evaluated within the definitions and substantiation supplied in Item 19. The 2026 FDD states that written substantiation for its financial performance representation is available to prospective franchisees upon reasonable request.
What should a buyer verify before relying on this estimate?
A buyer should replace every external assumption with same-brand operating records wherever possible. The most valuable evidence is a set of comparable franchisee profit-and-loss statements reconciled to the Item 19 Sales definition, Territory count, and owner role.
- Request the Item 19 written substantiation and confirm how each 2025 franchisee, Franchised Business, Territory, transfer, and redesign was classified.
- Ask mature single-Territory and multi-Territory franchisees for Gross Sales, merchandise cost, installation payroll, sales payroll, occupancy, vehicles, insurance, warranty, bad debt, and owner compensation.
- Separate product sales, rentals, installation, service, VA accounts, commercial work, and outside-Territory Sales because each can carry a different gross margin and labor requirement.
- Verify the actual Royalty Fee calculation for inside- and outside-Territory Sales and whether the prior-year threshold treatment changes the effective rate.
- Confirm current Marketing Fee, Local Marketing spend, Technology Fee, call-service usage charges, required software, and any Shared Services Program rollout.
- Determine whether the owner will personally perform general management, sales development, estimating, or operations—and what additional manager payroll is still required.
- Model financing interest and debt principal separately. Do not deduct the Item 7 initial investment from one year of Sales, and do not confuse operating earnings with after-tax cash.
What is the strongest defensible annual earnings view?
The strongest defensible range is approximately $119,000 to $214,000 of annual pre-tax active-owner benefit per Territory, with a base scenario near $155,000. It is scenario-based, not an official 101 Mobility profit disclosure. The corresponding operating residual after normal payroll is approximately $13,000 to $108,000, with a base near $49,000.
The most important earnings driver is the combination of per-Territory Sales and product-and-installation gross margin. The largest unresolved uncertainty is the absence of same-brand expense, owner-compensation, and profit data in the current disclosure. Before making a decision, a buyer should verify the Item 19 substantiation, obtain comparable franchisee profit-and-loss statements, and test the model against actual Territory configuration, owner duties, supplier costs, staffing, local marketing, and debt service.