Estimated annual owner-operator benefit for one mature U.S. Allegra Center, with a $78,000 base scenario. The strongest official evidence is not an owner salary or take-home figure: the 2026 Franchise Disclosure Document reports 2024 EBITDA margins and 2025 center sales. The range below converts those Item 19 facts into a single-center scenario while keeping owner labor, debt principal, capital spending, and personal taxes distinct.
Independent estimate. The $46,000–$119,000 range is an analytical scenario, not an Item 19 financial performance representation by Alliance Franchise Brands LLC. It combines identified facts from the 2026 FDD with explicit 80%/100%/120% revenue assumptions and a minus-3/base/plus-3 percentage-point margin sensitivity. Actual results can differ materially by location, sales mix, staffing, occupancy, equipment and lease structure, financing, owner involvement, customer concentration, and execution.
Data basis. Legal franchisor: Alliance Franchise Brands LLC. FDD issuance date: March 27, 2026. Item 19 provides 2025 Royalty-Based Sales for 140 mature U.S. franchised Allegra Centers and a 2024 Operating Ratio Study covering 92 Centers operated by 76 franchisees. The earnings formula uses no external industry margin. The FDD is cited in plain text because no matching franchise-controlled public copy was verified. Public sources were checked July 20, 2026.
What does Allegra officially disclose about earnings?
Officially, Allegra discloses EBITDA as a percentage of Gross Revenue—not annual owner pay. For the 2024 Operating Ratio Study, average EBITDA was 16.47% and median EBITDA was 16.87%. These results apply to participating U.S. franchisee financial records, not automatically to every physical Center or every owner.
The study included 92 of 154 U.S. Allegra Centers, or 59.74%, operated by 76 franchisees. When a participating franchisee operated multiple Centers, the FDD aggregated those financial statements and reported them as one Participating Center. That makes the reported $1,523,781 average and $1,220,685 median Gross Revenue partly an owner-record or portfolio measure rather than a clean per-location measure. Source: 2026 FDD, Item 19, pp. 51–52.
2024 Operating Ratio Study; before interest, taxes, depreciation, and amortization.
The middle participating franchisee record; not a dollar owner-income figure.
2025 result for 140 mature U.S. franchised Allegra Centers.
92 of 154 Centers participated; the records represented 76 franchisees.
100% less average COGS, Staff Cost, Operating Expenses, and Capital Asset Cost.
The FDD’s 2025 median Royalty-Based Sales of $707,083 is revenue. The FDD also reports a 2025 range from $27,426 to $4,521,900, showing why a sales figure alone cannot establish owner income. Only 45 of 140 Centers, or 32.14%, achieved or exceeded the $1,080,898 average. Source: 2026 FDD, Item 19, pp. 50–51.
How is the $46,000–$119,000 range calculated?
The range is estimated by applying a same-brand FDD cost structure to the 2025 per-Center median sales figure. The base case uses $707,083 of Royalty-Based Sales and an 11.06% residual margin after all cost categories listed in the Operating Ratio Study, producing $78,203 before rounding.
The 11.06% margin is derived as: 100% − 32.35% Cost of Goods Sold − 27.61% Staff Cost − 23.57% Operating Expenses − 5.41% Capital Asset Cost. Operating Expenses include royalties and Marketing Fund contributions. Capital Asset Cost includes amortization, depreciation, operating leases, and interest. Staff Cost excludes owner salary and benefits. Source: 2026 FDD, Item 19, pp. 51–52.
| Scenario | Revenue anchor | Residual margin | Estimated owner-operator benefit |
|---|---|---|---|
|
Conservative 80% of FDD median sales; base margin minus 3 points |
$565,666 | 8.06% | $45,593 |
|
Base FDD median sales; derived residual margin |
$707,083 | 11.06% | $78,203 |
|
Upside 120% of FDD median sales; base margin plus 3 points |
$848,500 | 14.06% | $119,299 |
- Revenue spread: 80%, 100%, and 120% of the 2025 Item 19 median are editorial scenario assumptions, not FDD quartiles or probabilities.
- Margin spread: minus 3, base, and plus 3 percentage points are sensitivity assumptions around the 11.06% derived residual margin.
- Rounding: calculations use full-precision inputs; displayed headline figures are rounded to the nearest $1,000.
- Excluded from the final owner figure: personal income taxes, financing principal, discretionary owner draws, and future capital expenditures not captured by the historical cost ratios.
Independent single-center estimates based on 2025 median Royalty-Based Sales and the FDD-derived post-listed-cost residual margin.
Interpretation: Sales and margin move together in this sensitivity model. The midpoint is not a prediction or the most likely outcome.
Source: 2026 FDD, Item 19, pp. 50–52; scenario calculations shown in the table above.
A reconciled allocation of $707,083 in modeled revenue using the FDD’s average cost ratios.
Interpretation: Cost of Goods Sold, payroll, and operating overhead are the largest modeled deductions. Royalties and Marketing Fund contributions are already inside Operating Expenses and are not subtracted again.
Source: 2026 FDD, Item 19, pp. 51–52; dollar amounts are derived by applying the disclosed average ratios to the 2025 median-sales anchor.
How does owner involvement change the meaning of the result?
Allegra is structured as an active owner-operated business, so the estimated residual is not passive profit. Item 15 requires the owner or Managing Owner to devote substantially all effort and time to on-premises supervision and manage the Center full time. A separate onsite manager does not remove that full-time owner obligation. Source: 2026 FDD, Item 15, p. 44.
The Operating Ratio Study’s Staff Cost excludes owner salary and benefits. Therefore, the $46,000–$119,000 range should be labeled estimated owner-operator benefit: it may contain both residual business return and compensation for the owner’s labor. It is not equivalent to profit after paying a market-rate chief executive or general manager.
- Owner salary
- Not included in the FDD’s Staff Cost definition. Salary paid to the owner would be one way of distributing the available owner-benefit pool, not an additional amount on top of it.
- Owner draw or distribution
- A cash transfer to the owner. It is not necessarily the same as accounting profit and may be constrained by working-capital needs, loan covenants, taxes, or reinvestment.
- Economic business profit
- The residual after charging the business a market value for the owner’s full-time labor. The FDD does not report this measure.
- Manager-run income
- Not supported as a passive model by Item 15. Additional management payroll could reduce owner cash unless it produces enough extra sales or operating efficiency to offset the cost.
A buyer comparing Allegra with a job salary should compare the estimated owner-operator benefit with the value of the full-time work required. A buyer comparing businesses as investments should deduct a defensible market compensation charge for that labor before calling the remainder business profit.
Why can actual Allegra owner earnings differ so widely?
The largest uncertainty is whether a specific Center will resemble the mature per-Center sales population and the participating operating-ratio population at the same time. The official sales distribution is wide, and the profitability study excludes nonparticipants, new Centers, closed Centers, dual-branded Centers, and incomplete records.
| 2025 mature franchised Allegra cohort | Centers | Average Royalty-Based Sales | Median Royalty-Based Sales |
|---|---|---|---|
| All reported Centers | 140 | $1,080,898 | $707,083 |
| Top 50% | 70 | $1,719,843 | $1,301,486 |
| Bottom 50% | 70 | $441,953 | $435,289 |
The top and bottom groups are FDD performance bands, not probabilities. The full reported range was $27,426 to $4,521,900. Source: 2026 FDD, Item 19, pp. 50–51.
- Participation bias: 62 of 154 Centers were outside the 2024 Operating Ratio Study. The 25 nonparticipating Centers with available Royalty-Based Sales had a $474,212 median. That is not the same metric as Gross Revenue, but it shows that the excluded population must be examined rather than assumed comparable.
- Per-unit versus per-owner aggregation: multi-Center franchisee financials were combined into one participating record, so the study’s revenue figures cannot be treated as clean single-unit results. A buyer should not multiply the one-Center scenario by a unit count without modeling ramp-up, shared overhead, management structure, and unit maturity.
- Different sales definitions: 2025 Royalty-Based Sales combine Gross Sales and Total Receipts reporting methods, while the 2024 study uses Gross Revenue under generally accepted accounting principles.
- Owner compensation: owner salary and benefits are excluded from Staff Cost, preventing a clean split between labor compensation and investment return.
- Capital-cost ambiguity: Capital Asset Cost combines interest and operating leases with noncash depreciation and amortization, so the derived residual is not a pure cash-flow measure.
- System movement: Item 20 shows franchised Centers across the disclosed design brands declining from 188 at the end of 2023 to 166 at the end of 2025; this does not determine earnings, but it makes closure, transfer, and retention interviews material. Source: 2026 FDD, Item 20, pp. 53–59.
Are royalty, debt service, and taxes already included?
Royalties and Marketing Fund contributions are included in the official Operating Expenses ratio, but debt principal and personal taxes are not. The standard 2026 royalty schedule is 6% of Gross Sales through $1,272,818, 4% on the next tier through $2,545,637, and 1.5% above that; Allegra Marketing Fund contributions are 1% of Gross Sales, capped at $12,250 for 2026. The FDD states that these charges are included in Operating Expenses for the ratio study. Source: 2026 FDD, Items 6 and 19, pp. 11–17 and 51–52.
The model does not subtract the royalty or Marketing Fund a second time. It also does not calculate after-tax take-home pay. Personal taxes depend on entity structure, jurisdiction, deductions, and owner circumstances. Debt principal is a financing cash outflow rather than an operating expense; a heavily financed acquisition can leave substantially less cash available even when operating performance matches the scenario.
The scenario range is an operating and owner-labor benefit estimate, not spendable cash after acquisition financing. Buyers should model the actual purchase price, financed amount, interest rate, amortization term, equipment obligations, and required working capital separately.
What should a buyer verify before relying on the range?
A buyer should verify whether the target Center’s financial statements reconcile to Item 19 definitions and whether the owner’s required labor is reflected consistently. This is more important than choosing a single headline number.
- Request the written substantiation for the 2024 Operating Ratio Study and confirm how multi-Center records were weighted.
- For an existing acquisition, reconcile three years of tax returns, profit-and-loss statements, payroll registers, equipment leases, debt schedules, and owner compensation.
- Ask participating and nonparticipating franchisees what is recorded in Staff Cost, Operating Expenses, and Capital Asset Cost.
- Separate owner hours spent on sales, production supervision, finance, and general management from residual business return.
- Compare the target Center’s customer concentration, recurring accounts, outsourced production, lease terms, equipment age, and local wage structure with the Item 19 cohort.
- Ask current and former franchisees listed in Item 20 about closures, transfers, required reinvestment, and the cash impact of debt service.
The FTC consumer guide to buying a franchise explains that gross sales do not establish profit and recommends requesting written substantiation for Item 19 claims. The FTC also advises buyers to test earnings representations through franchisee interviews and independent accounting review in its guidance on evaluating franchise financial performance.
What is the strongest defensible earnings takeaway?
A reasonable single-center estimate is approximately $46,000 to $119,000 in annual owner-operator benefit, with a $78,000 base scenario. This is scenario-based, not an official owner-income claim. The strongest official evidence is Allegra’s 2024 Item 19 EBITDA margin disclosure, while the most useful single-unit revenue anchor is the 2025 median Royalty-Based Sales of $707,083.
The most important earnings driver is the combination of center-level sales and the cost structure for materials, payroll, and overhead. The largest unresolved uncertainty is owner compensation: Item 15 requires full-time owner involvement, while Item 19 excludes owner salary and benefits from Staff Cost. Before making a decision, verify the FDD substantiation, the target Center’s actual records, and the labor-versus-profit split through detailed interviews with current and former franchisees.