AdvantaClean's March 25, 2026 Franchise Disclosure Document does not report outlet sales, profit, or owner compensation. The range above is a conditional estimate for a full-time owner at modeled annual revenue of $600,000 to $900,000. A manager-run version of the same model leaves approximately $30,000 to $99,000 in pre-tax owner earnings before financing and personal taxes.
This is an independent analytical scenario, not an Item 19 financial performance representation by AdvantaClean Systems, LLC. It combines identified 2026 FDD facts with separately identified benchmark and editorial assumptions. Actual results can differ materially by territory, service mix, weather events, sales, labor, subcontracting, warehouse cost, insurance, financing, owner involvement, and execution.
- Legal franchisor
- AdvantaClean Systems, LLC, a North Carolina limited liability company and an affiliate of Home Franchise Concepts, LLC.
- Current disclosure
- Franchise Disclosure Document issued March 25, 2026; Item 19, p. 41; Items 5–7, pp. 7–15; Item 15, pp. 35–37; Item 20, pp. 42–48.
- Item 19 status
- No financial performance representation: no same-brand revenue, operating profit, net income, cash flow, or owner-compensation result is disclosed.
- Applicable operation
- A restoration and remediation business serving residential and commercial properties within a protected U.S. territory, with a required commercial warehouse by the first anniversary.
- Owner-role benchmark
- May 2023 U.S. Bureau of Labor Statistics mean annual wage of $116,340 for General and Operations Managers in NAICS 562900.
- Date checked
- July 16, 2026.
What does AdvantaClean's 2026 Item 19 actually disclose?
Officially, it discloses no sales or earnings result. Item 19 states that the franchisor makes no representation about future franchisee performance or the past performance of franchised or company-owned outlets. Therefore, no average unit volume, median sales, profit margin, EBITDA, net income, owner salary, or percentage-achieving figure can be attributed to AdvantaClean.
The correct evidence mode is Mode D — Structural FDD-Anchored Estimate. The FDD supplies the business format, recurring fee formulas, owner-participation rule, warehouse requirement, financing terms, and outlet population. It does not supply the revenue or operating-cost distribution needed to calculate official owner earnings. The evidence-confidence label is LIMITED because the final range depends materially on editorial revenue and margin scenarios plus an older, broad-industry manager-wage benchmark.
The model uses revenue only as a scenario input. Gross receipts must still cover technician and manager payroll, job materials, subcontractors, vehicles, fuel, insurance, warehouse occupancy, local marketing, administration, required franchise fees, and other operating expenses before cash is available to the owner.
$60,000 residual operating cash plus $116,340 of modeled manager-replacement labor value, rounded to the nearest $1,000.
Eight percent of $750,000 modeled revenue after normal unit-level operating expenses and recurring franchise fees.
May 2023 BLS annual mean wage for General and Operations Managers in NAICS 562900.
At $750,000 of modeled bank deposits, before the $7,200 technology fee and up to $2,000 convention fee.
Item 20 reports zero company-owned outlets, so there is no company-operated profit proxy.
How is the annual owner-earnings range modeled?
The estimate tests three conditional operating cases rather than predicting a typical outlet. The base case uses $750,000 of annual bank deposits because that is a disclosed royalty breakpoint, not because the FDD says an outlet normally reaches that amount. The conservative and upside revenue cases are 80% and 120% of that analytical midpoint. Manager-run residual margins of 5%, 8%, and 11% are explicit editorial assumptions after all normal operating costs and FDD recurring fees.
- Revenue assumptions: $600,000, $750,000, and $900,000. These are analytical test points, not FDD-reported sales.
- Manager-run margin assumptions: 5%, 8%, and 11%, a three-percentage-point sensitivity around the base margin. These are not franchisor or government profit benchmarks.
- Included: normal unit-level labor, including a paid manager; job costs; occupancy; vehicle and insurance expense; local marketing; administration; royalty; National Advertising Fund payment; technology fee; and the maximum annual convention fee.
- Excluded: financing interest and principal, depreciation, capital expenditures, owner salary or draw, personal income taxes, and unusual disaster-response gains or losses.
| Scenario | Modeled revenue | Manager-run margin | Pre-tax owner earnings | Owner-operator benefit |
|---|---|---|---|---|
| Conservative | $600,000 | 5% | $30,000 | $146,000 |
| Base | $750,000 | 8% | $60,000 | $176,000 |
| Upside | $900,000 | 11% | $99,000 | $215,000 |
Residual cash after modeled unit-level expenses and disclosed recurring franchise fees; before financing and personal taxes.
Interpretation: Revenue and operating margin move together in this sensitivity model, so the endpoints are not probabilities and the base case is not presented as the most likely result.
Source and method: Editorial revenue and margin assumptions; recurring fee formulas from the 2026 FDD, Item 6, pp. 8–12. Calculations use full precision and display earnings to the nearest $1,000.
How does full-time owner involvement change the result?
It can raise total owner benefit substantially, but the increase compensates the owner for labor rather than creating passive profit. Item 15 requires the owner or a principal to devote full-time attention, skill, and best efforts to the AdvantaClean Business. A Designated Manager is permitted only after a written request, franchisor approval, and required training. The FDD does not state that manager approval removes the owner's full-time obligation, so the manager-run scenario should not be read as a passive-ownership model.
The owner-operator scenarios add the BLS May 2023 General and Operations Manager wage benchmark for NAICS 562900—$116,340—to manager-run residual cash. The result is labeled estimated owner-operator benefit, not pure business profit. It combines operating residual with the market value of management work performed by the owner. The benchmark is more than three years old as of the check date, covers employers of all sizes, and is a wage estimate rather than total employer compensation.
Each line separates business residual from the labor value added when the owner replaces a paid general manager.
Interpretation: The $116,340 gap is labor compensation. It should not be described as passive income, a distribution, or an automatic increase in business value.
Source and method: Owner-participation terms from the 2026 FDD, Item 15, pp. 35–37; May 2023 BLS NAICS 562900 wage estimate. The BLS benchmark covers employers of all sizes and is not AdvantaClean-specific.
Which disclosed fees reduce cash available to the owner?
The material disclosed recurring burden is the tiered royalty, National Advertising Fund payment, technology fee, and convention fee. Royalty is based on bank deposits rather than billed sales, which matters when insurance-related collections are delayed. The table applies the FDD formulas to the three revenue scenarios; it is a derived calculation, not a franchisor performance result.
| Scenario | Royalty | National ad fund | Technology + convention | Total disclosed burden |
|---|---|---|---|---|
| Conservative: $600,000 deposits | $42,000 | $6,000 | $9,200 | $57,200 (9.5%) |
| Base: $750,000 deposits | $52,500 | $7,500 | $9,200 | $69,200 (9.2%) |
| Upside: $900,000 deposits | $54,000 | $9,000 | $9,200 | $72,200 (8.0%) |
The model uses the current 1% National Advertising Fund rate, $600 monthly technology fee for the first territory, and the maximum $2,000 annual convention fee. Item 11 says franchisees also place local advertising and may later be required to spend an amount stated in the Manual; because the FDD does not disclose a fixed annual amount, local marketing is contained within the all-in operating-margin assumptions rather than shown as a separate official line item.
Financing is separate from operating earnings. Item 10 offers qualified buyers financing of $32,000 for 60 months at 10%, with a stated monthly payment of $682.39. That equals approximately $8,189 per year of debt service and would reduce owner cash after financing. The scenario ranges exclude this payment because buyers may finance different assets and amounts.
Why is the reasonable earnings range so uncertain?
The largest uncertainty is the absence of any same-brand sales or cost distribution. Without an Item 19 revenue measure, there is no verified central sales figure, maturity cohort, quartile spread, reporting sample, or percentage of outlets achieving a stated result. Without company-owned outlets, there is also no same-brand corporate operating proxy.
Item 20 adds a separate system-stability warning. Franchised outlets declined from 142 at the start of 2023 to 70 at the end of 2025. The FDD's cover highlights 95 terminations, non-renewals, or other cessations during the prior three years—more than 48.47% of franchised outlets. Those counts do not prove why individual businesses left and do not measure profit, but they materially increase the need for outlet-level verification.
Which variables move owner earnings the most?
Revenue density and owner labor are the dominant variables in this model. Job volume, average invoice size, collections timing, emergency-response mix, technician utilization, subcontracting, insurance-claim work, warehouse rent, vehicle cost, and local lead-generation efficiency can each move the residual margin by several percentage points. A three-percentage-point margin change at $750,000 of revenue changes annual owner earnings by $22,500 before any owner-labor adjustment.
What should a buyer verify before relying on an earnings number?
A buyer should replace every editorial assumption with written, territory-relevant evidence. The most useful work is to reconcile bank deposits, job-level gross margin, payroll, owner hours, local marketing, warehouse occupancy, vehicle expense, and franchise fees for existing operators.
- Ask for the current Item 19 and written substantiation for any earnings or sales statement made during the sales process; the FTC Franchise Rule explains the disclosure framework.
- Interview a mix of current and former franchisees listed in Item 20 and ask for annual bank deposits, technician headcount, gross job margin, owner hours, manager pay, and cash distributions for comparable territories.
- Separate restoration and remediation revenue from reconstruction or other subcontracted non-core services because the royalty treatment differs.
- Confirm the current royalty tier, National Advertising Fund rate, technology fee, local advertising requirement, warehouse lease, insurance package, and supplier costs in writing.
- Model financing separately, including the $682.39 monthly Item 10 note payment when applicable, plus any vehicle or equipment financing not provided by the franchisor.
- Compare the territory's labor market with the BLS remediation and waste-management wage data; the national benchmark may not fit a specific city.
What is the strongest defensible annual earnings range?
The strongest defensible answer is conditional, not official: approximately $30,000 to $99,000 of manager-run pre-tax owner earnings, or approximately $146,000 to $215,000 of owner-operator benefit when the full-time owner replaces a paid manager. The most important driver is the combination of annual bank deposits and unit-level operating margin. The largest unresolved uncertainty is that the 2026 Item 19 provides no same-brand revenue or profit evidence. Before treating any point in the range as relevant, a buyer should verify Item 19, request written substantiation, and test the model against comparable current and former franchisees' actual records.
These figures are before personal income taxes. Tax outcomes depend on entity structure, jurisdiction, deductions, and individual circumstances.