Owner earnings answer
$131,827 average ODCF
CarePatrol's 2026 Franchise Disclosure Document reports average 2025 Owner Discretionary Cash Flow (ODCF) of $131,827 for franchised offices that reported financials. The same official income statement reports $95,352 of Net Income. Across 2023-2025, the official annual cash-flow averages span $127,319 to $152,039, but that span is a history of system averages, not a low-to-high range for individual owners.
Item 19 evidence
What does the 2026 CarePatrol FDD officially report?
The direct official answer is $131,827 of average ODCF and $95,352 of average Net Income for 2025. These are different measures from Gross Sales, and neither is personal after-tax take-home pay. The figures come from Item 19, Table D, titled “2025 Average Consolidated Income Statement - Nationwide.”
- Total Income
- Placement revenue plus all other revenue. It is revenue, not owner earnings.
- EBITDA
- Earnings before interest, taxes, depreciation, and amortization. The 2025 official average was $103,770.
- Net Income
- The disclosure's accounting-profit measure after the reported interest, income-tax, and depreciation/amortization expenses. The 2025 official average was $95,352.
- ODCF
- Owner Discretionary Cash Flow. The calculation starts with accounting profit and adds back interest, depreciation/amortization, and owner-officer salary. The 2025 official average was $131,827.
- Personal take-home pay
- Not disclosed. Personal income taxes, owner distributions, debt principal, capital spending, and individual entity structure remain separate.
FDD source: CarePatrol 2026 FDD, Item 19, Table D, pp. 54-57 (PDF pp. 62-65). Amounts are shown as reported, with prose rounded to the nearest dollar.
How did official Net Income and ODCF change from 2023 to 2025?
The three-year history gives a defensible range of annual averages, but not a distribution of individual office outcomes.
Interpretation: The official cash-flow average ranged from $127,319 to $152,039 over the three years, while the accounting-profit average ranged from $88,363 to $114,352. The 2025 cash-flow figure is inside that historical band.
Source: CarePatrol 2026 FDD, Item 19, Table D, pp. 54-57. Chart values are rounded to the nearest $100 after using the reported amounts.
Population and measurement
Does Item 19 report revenue per territory, revenue per owner, or earnings per office?
It reports all three concepts in separate tables, and they must not be merged. Table A measures Gross Sales per franchise territory, Table B aggregates Gross Sales per franchise owner, and the income-statement table covers reporting franchised offices. The disclosure warns that its reporters may not be the same population as Tables A through C.
| Item 19 evidence block | Reporting unit and population | 2025 official result | What it measures |
|---|---|---|---|
| Table A | 174 franchise territories open for the full 2025 measurement period | Average Gross Sales: $322,639 Median Gross Sales: $186,094 |
Revenue per territory, not owner earnings |
| Table B | 141 franchise owners; multi-territory owners are aggregated | Average Gross Sales: $406,857 Median Gross Sales: $201,717 |
Revenue per owner, not per territory and not owner earnings |
| Table D | Reporting franchised offices; 1,224 location-months in 2025 | Net Income: $95,352 ODCF: $131,827 |
Official earnings measures from the average consolidated income statement |
The tenure tables reinforce the same point. Territories operating 60 months or more averaged $465,173 of Gross Sales and had a $331,325 median, while territories operating 13-36 months averaged $106,790 and had an $80,225 median. Those are official revenue cohorts, not profit cohorts. Applying the 37.02% cash-flow percentage to those tenure figures would combine populations that the disclosure explicitly separates, so this article does not do it.
FDD source: CarePatrol 2026 FDD, Item 19, Tables A-D, pp. 51-57. Table A excludes territories open less than one year, territories with reporting problems or halted development, and one two-territory franchisee reporting both territories as one unit.
Owner role
How does owner involvement change CarePatrol earnings?
Owner involvement changes the meaning of the cash-flow measure more than it changes the official arithmetic. The 2025 calculation adds back $33,257 of owner-officer salary, so part of the $131,827 figure can represent compensation for the owner's labor rather than passive business profit. Item 15 requires either a Managing Owner or an approved Managing Employee to devote full-time effort to the business, defined as at least 35 hours per week.
Multi-unit ownership adds another labor constraint: Item 15 requires a full-time dedicated marketer for each additional territory. That makes simple multiplication of one-office cash flow by the number of territories unreliable. Portfolio economics depend on staffing, shared overhead, territory maturity, and how owner labor is allocated.
FDD source: CarePatrol 2026 FDD, Item 15, p. 47, and Item 19, Table D, pp. 54-57.
How does 2025 Total Income reconcile to ODCF?
This waterfall uses only compatible lines from the official 2025 average consolidated income statement.
Interpretation: Labor was the largest disclosed operating deduction at $131,119, or 36.82% of Total Income. The $33,257 owner-officer salary add-back represented 25.2% of the reported cash-flow total, which is why the measure should not be described as passive profit.
Source: CarePatrol 2026 FDD, Item 19, Table D, pp. 54-57. “Other expense, net of other income” is a derived bridge line equal to $83,728.26 of Total Expenses less $1,067.43 of Other Income. Values are rounded to the nearest $100 for labels.
Recurring obligations
Are CarePatrol royalties and required marketing already reflected in the official earnings figure?
The 2025 income statement already includes a $29,106 “Franchise Fees (Royalty / NAF / Tech)” expense line, equal to 8.17% of Total Income, plus a separate $23,250 Marketing expense line. Those costs must not be subtracted again from the reported accounting-profit or cash-flow measures. However, the consolidated statement does not show which current offering each reporting office used or map every contractual fee to a separate accounting line.
| Current FDD obligation | 2026 FDD schedule | Earnings treatment |
|---|---|---|
| Royalty Fee | Standard Offering: 10%-12% of Gross Sales with monthly minimums; Reduced Initial Fee Offering: 15% with minimums; Community Coverage Market: tiered 6%-10% with minimums | The income statement includes royalty inside the combined franchise-fees line; do not charge it twice. |
| National Advertising Fee | 1% of Gross Sales with a $300 monthly minimum; the FDD allows an increase to 2% with a $600 minimum | Included in the combined franchise-fees line as NAF. |
| Local Marketing Spend | Greater of 2% of monthly Gross Sales or $1,000 per month, plus at least eight hours per week devoted to local marketing | The income statement has a separate Marketing expense category, but the FDD does not provide a one-to-one reconciliation to the contractual minimum. |
| Technology Fee | $449 per month, subject to permitted changes tied to provider cost or added technology | Included in the combined franchise-fees line. |
| Contact Center Fee | First six months prepaid; $799 per month for the first unit during the following six months. Participation is required for the first 12 months and optional afterward. | New and mature offices may have different cost exposure; the income statement does not isolate the fee. |
The offering choice matters. A Reduced Initial Fee territory carries a 15% royalty, while a mature Standard Offering can carry 12% and a Community Coverage Market uses a tiered formula. The disclosure does not split earnings results by Standard, Reduced Initial Fee, or Community Coverage Market territory, so a buyer should not assume the consolidated average matches the fee burden in a specific proposed agreement.
FDD source: CarePatrol 2026 FDD, Item 6, pp. 16-24, and Item 19, Table D, pp. 54-57. Item 7's initial investment and Additional Funds are startup context, not annual operating expenses.
Decision range
What is the strongest defensible annual CarePatrol owner-earnings range?
The strongest defensible range is $127,319 to $152,039 of official average ODCF, which is the span of the 2023-2025 annual averages. The parallel official accounting-profit span is $88,363 to $114,352. For 2025 specifically, the official figures are $131,827 of cash flow and $95,352 of accounting profit.
This range has Moderate evidence confidence. The measure is direct and current, but the distinct number of reporting offices is undisclosed, the income statement includes locations regardless of tenure or status, the data are unaudited, the reporting population may differ from the Gross Sales tables, and there is no outlet-level cash-flow median, quartile, minimum, maximum, or percentage-achieving result. The range therefore captures year-to-year movement in averages, not the full uncertainty an individual owner faces.
Debt service must remain outside the operating earnings comparison. The official cash-flow calculation adds back reported interest, but an owner still must pay actual interest and financing principal from cash. Personal federal, state, and local taxes are also separate; the FDD's income-tax line is not a personalized after-tax estimate.
Buyer verification
What should a buyer verify before relying on the official cash-flow figure?
A buyer should treat the official $131,827 cash-flow average as a due-diligence starting point, not as a personal income forecast. The most useful next step is to reconcile the Item 19 substantiation with full-year franchisee profit-and-loss statements and actual owner hours.
- Request the written substantiation supporting Item 19 and confirm how Table D averages were calculated from 1,224 location-months.
- Ask for the distinct number of reporting offices, the number with a full 12 months of data, and whether closed, transferred, newly opened, or non-reporting offices affected the calculation.
- Request separate owner-operated and manager-run financial statements, including Managing Employee compensation, payroll burden, and the treatment of owner-officer salary.
- Confirm whether the proposed territory is Standard, Reduced Initial Fee, or Community Coverage Market, then model the exact royalty minimums, National Advertising Fee, local marketing minimum, technology fee, and Contact Center obligation.
- Interview current and former franchisees across the 13-36, 37-48, 49-60, and 60-plus-month cohorts about placement volume, labor structure, owner hours, collections, and cash retained after debt service.
- Separate business profit, owner labor compensation, distributions, debt principal, capital expenditures, and personal taxes in every projection.
The best-supported annual CarePatrol owner-benefit evidence is the official 2023-2025 average ODCF span of $127,319-$152,039, with 2025 at $131,827. The cleaner accounting-profit reference is $95,352 for 2025. The most important earnings drivers are placement revenue and labor, while owner involvement changes whether the $33,257 owner-officer salary add-back represents compensation for full-time work or whether a full-time Managing Employee remains an expense. The largest unresolved uncertainty is the absence of an outlet-level earnings distribution and owner-role breakdown. A buyer should verify the Item 19 substantiation, the exact fee program, manager cost, full-year office count, debt obligations, and comparable franchisee P&Ls before converting the official average into a personal earnings expectation.