This is an independent estimate of manager-run, pre-tax owner earnings for one U.S. Charleys Restaurant. The range uses the 2026 Franchise Disclosure Document’s 2025 median Gross Sales of $743,169, an analytical sales spread, and a limited-service restaurant margin benchmark. If the owner personally replaces a paid food service manager, the corresponding estimated owner-operator benefit is $80,800–$137,300; that higher range includes the market value of the owner’s labor and is not passive business profit.
The owner-earnings figures on this page are independent analytical scenarios, not an Item 19 financial performance representation by Gosh Enterprises, Inc. They combine identified Charleys FDD facts with separately identified restaurant benchmarks and editorial assumptions. Actual results can differ materially because of location, Restaurant format, Gross Sales, food cost, labor, occupancy, delivery mix, financing, owner involvement, and operating execution.
- Legal franchisor
- Gosh Enterprises, Inc.
- Disclosure document
- Charleys 2026 Franchise Disclosure Document, issued April 28, 2026; Item 19, pp. 42–43; Items 5, 6, 7, 15, and 20 also reviewed.
- Applicable formats
- CPS Restaurants, CPSW Restaurants, and CPSW Restaurants in Walmart Locations. Official format context is available from the Charleys U.S. franchise website and its Restaurant-format overview.
- External benchmarks
- National Restaurant Association limited-service income before taxes and operating-cost evidence; U.S. Bureau of Labor Statistics food service manager wages; U.S. Census Bureau NAICS 722513.
- Evidence status
- Item 19 reports Gross Sales, not operating profit, net income, cash flow, owner compensation, or owner distributions. Evidence mode is therefore Mode C, with limited confidence.
- Date checked
- July 21, 2026.
All 713 eligible franchised Restaurants open for the full 2025 calendar year.
The Item 19 cohort excludes 77 Restaurants that opened, permanently closed, or temporarily closed during 2025.
Median FDD Gross Sales multiplied by the 4.0% limited-service benchmark margin.
National Restaurant Association 2024 limited-service respondent median income before taxes as a share of sales.
Before occupancy and other operating expenses; the percentage depends on Restaurant format.
May 2025 U.S. mean annual wage for food service managers, used only in owner-operator scenarios.
What does Charleys Item 19 actually measure?
Officially, Item 19 measures 2025 Gross Sales by Restaurant location type; it does not disclose owner earnings. The applicable population is 713 U.S. franchised Restaurants that operated for the entire 2025 calendar year. Gosh Enterprises, Inc. states that food cost, labor, occupancy, royalty, advertising, technology, debt, and other expenses are not included in the Item 19 table.
The strongest central sales figure is the $743,169 median Gross Sales for All Restaurants. The corresponding average is $845,372, but only 294 of 713 Restaurants—41.23%—met or exceeded that average. The median is therefore the cleaner central revenue anchor for this analysis. Gross Sales remains revenue, not business profit, owner salary, distributions, or after-tax take-home pay.
| 2025 franchised Restaurant type | Median Gross Sales | Average Gross Sales | Restaurants | Met/exceeded average |
|---|---|---|---|---|
| Military Bases | $599,993 | $664,875 | 65 | 40.00% |
| Airport | $1,271,990 | $1,300,879 | 3 | 33.33% |
| Mall Food Court | $947,967 | $1,011,314 | 310 | 40.97% |
| Strip Center | $691,658 | $803,888 | 194 | 39.18% |
| Walmart | $581,548 | $611,127 | 141 | 44.68% |
| All Restaurants | $743,169 | $845,372 | 713 | 41.23% |
Source: Charleys 2026 FDD, Item 19, pp. 42–43. Gross Sales are based on POS data and unaudited franchisee reports used for royalty calculations, with stated adjustments for third-party delivery refunds and promotional discounts. Item 19 excludes 40 Restaurants opened during 2025, 24 permanently closed during 2025, and 13 temporarily closed during 2025.
A Restaurant at the $743,169 median could generate a loss, a modest residual, or a stronger owner return depending on food cost, payroll, rent, delivery commissions, repair expense, local marketing, financing, and management structure. The Federal Trade Commission’s franchise-buying guidance explains why a prospective buyer should request the written substantiation behind Item 19 and compare it with current and former franchisee experience.
What annual owner earnings do the scenarios produce?
The independent manager-run scenarios produce approximately $5,900, $29,700, and $62,400 of annual pre-tax owner earnings. These are estimates for one mature, full-year U.S. franchised Restaurant, not official Charleys profit figures. The model uses the all-Restaurants median Gross Sales, a transparent 80%/100%/120% revenue spread, and a 1%/4%/7% margin sensitivity.
- Revenue anchor—official: $743,169 median 2025 Gross Sales for 713 full-year franchised Restaurants. Conservative and Upside revenue are 80% and 120% of that median. The spread is an editorial assumption, not an FDD quartile or probability forecast.
- Margin anchor—benchmark: the National Restaurant Association’s 2025 Restaurant Operations Data Abstract summary reports 4.0% median income before taxes for limited-service respondents in 2024. The scenarios apply 1%, 4%, and 7%, a benchmark sensitivity of minus or plus 3 percentage points.
- Expense treatment: the 4.0% measure is used as an all-in operating proxy, so Charleys royalty and advertising obligations are not subtracted again. Separate subtraction would risk double-counting. The proxy may still differ from a Charleys franchisee’s accounting treatment and fee mix.
- Included and excluded: results are before personal income taxes and financing principal payments. Capital expenditures are excluded. Interest, depreciation, and owner compensation are not separately normalized because the public benchmark summary does not provide enough line-item detail to make a precise Charleys adjustment.
- Rounding: full-precision inputs are calculated first; published annual figures are rounded to the nearest $100.
One mature, full-year Restaurant; scenario earnings are residual business income before personal taxes and debt principal.
Interpretation: the range is wide because a 6-percentage-point margin swing matters more than small rounding differences. At the Base revenue anchor, each 1 percentage point of margin equals about $7,432 annually.
Sources and formula: Charleys 2026 FDD, Item 19, pp. 42–43; National Restaurant Association 2025 Restaurant Operations Data Abstract summary. Conservative: $594,535 × 1%; Base: $743,169 × 4%; Upside: $891,803 × 7%.
The revenue anchor is same-brand official evidence, but the FDD omits Restaurant-level expenses and owner compensation. The margin comes from a current, transparent limited-service industry survey rather than Charleys franchisee profit-and-loss statements. That mismatch is the principal reason the estimate is not rated Moderate or High confidence.
How does owner involvement change the result?
Active owner operation can increase the economic benefit by the value of a manager role, but it does not automatically increase pure business profit. In the owner-operator scenarios, adding the May 2025 U.S. mean annual wage of $74,880 for food service managers produces an estimated benefit of $80,800–$137,300. The wage input comes from the U.S. Bureau of Labor Statistics Occupational Employment and Wage Statistics release.
The distinction is material: manager-run pre-tax owner earnings represent residual business income after normal management labor is assumed. Estimated owner-operator benefit combines that residual with compensation for work the owner performs. It should not be described as passive income, a distribution, or guaranteed owner salary.
The distance between markers is the $74,880 manager labor value added when the owner is assumed to replace that role.
Interpretation: the owner-operator figure is higher because it includes labor compensation. It is not evidence that the Restaurant’s underlying operating margin improves by $74,880.
Sources and formula: manager-run scenarios above plus the BLS May 2025 mean annual food service manager wage of $74,880.
Item 15 of the 2026 FDD requires the franchisee or approved Operating Partner to exert full-time and best efforts, and the Restaurant must be managed by that person or a trained manager. An entity’s Operating Partner must hold or have the right to hold at least 10% of equity and voting rights. A “manager-run” case therefore should not be interpreted as absentee ownership without active Operating Partner responsibility.
Which Charleys format changes the earnings picture most?
Location format materially changes the revenue anchor, but the 2026 FDD does not show format-level expenses. Applying the same 4.0% Base benchmark to each official median Gross Sales figure produces modeled residuals from about $23,300 for Walmart Restaurants to about $50,900 for Airport Restaurants. These are estimates, not Item 19 profits.
| Format | Official 2025 median Gross Sales | Modeled residual at 4.0% | Decision limitation |
|---|---|---|---|
| Military Bases | $599,993 | $24,000 | Base access, hours, and contract conditions may not resemble conventional retail. |
| Airport | $1,271,990 | $50,900 | Only three Restaurants; the median is not a stable systemwide planning anchor. |
| Mall Food Court | $947,967 | $37,900 | Traffic and occupancy economics can differ substantially by mall and lease. |
| Strip Center | $691,658 | $27,700 | CPS and CPSW concepts can have different advertising obligations and operating models. |
| Walmart | $581,548 | $23,300 | Percentage rent and location-specific sublease terms require separate underwriting. |
| All Restaurants | $743,169 | $29,700 | Mixes location types; useful for a broad central case, not a site-specific forecast. |
Derived calculation: each Item 19 median Gross Sales figure × 4.0%, rounded to the nearest $100. The common margin isolates revenue differences but does not claim that every format has the same labor, food, occupancy, delivery, or fee structure.
The closest government classification is U.S. Census Bureau NAICS 722513, Limited-Service Restaurants, which includes fast-food, fast-casual, and takeout-oriented establishments such as sandwich shops. That classification supports the limited-service benchmark choice, but it does not make a broad industry median equivalent to a particular Charleys format or location.
How do recurring fees and restaurant costs affect the range?
Recurring franchise fees create a significant fixed percentage claim on Gross Sales before food, payroll, occupancy, delivery, repairs, and debt service are considered. This statement is official for the 2026 FDD fee schedule, while the ultimate earnings effect remains uncertain because Item 19 does not disclose expenses.
- Royalty Official
- The greater of $300 per week or 6% of Gross Sales.
- CPS and Walmart APO Official
- Currently 3% of Gross Sales: 1% Marketing Fund and 2% Local Store Marketing.
- Non-Walmart CPSW APO Official
- Currently 4% of Gross Sales: 1% Marketing Fund and 3% Local Store Marketing.
- Combined current burden Derived
- 9% of Gross Sales for CPS and Walmart formats, or 10% for non-Walmart CPSW, before occupancy and other operating costs.
- Potential change Official
- The APO can be increased or reallocated up to 5%; a future advertising cooperative can create additional required contributions.
- Walmart recurring items Official
- Percentage rent, a $27.50 weekly digital menu board support fee, a $6.50 monthly technology fee, and a possible $150 monthly internet charge.
Restaurant cost pressure remains meaningful even before franchise-specific differences. The National Restaurant Association reports 2024 limited-service medians of 31.7% of sales for labor, 5.2% for occupancy, and 32.4% for food and nonalcohol beverage cost. These figures describe survey respondents, not Charleys franchisees, and they should not be mechanically added to the 4.0% all-in margin model.
The 2026 FDD contains a material internal inconsistency that should be resolved in writing. Item 6, p. 6 states Walmart rent is 10% of weekly Gross Sales with a $750 weekly or $3,000 monthly minimum, while Item 10, p. 22 describes the Rent/CAM/Utility Fee as 10% with a $250 weekly minimum. This analysis does not choose between those terms or model the minimum. A buyer should obtain the controlling Sub-Sublease, written clarification, and site-specific payment history.
Debt service is separate from operating earnings. Item 10 states that Gosh Enterprises, Inc. does not offer direct or indirect financing and does not guarantee a franchisee’s note, lease, or obligation. The manager-run scenario is therefore shown before financing principal; no universal loan amount, rate, or term is assumed. Personal income taxes are also excluded because entity structure, state, deductions, and owner circumstances vary.
What should a buyer verify before relying on the range?
A buyer should treat $5,900–$62,400 as a screening range, not a site forecast, until actual Charleys expense records are obtained. The main unresolved question is the unit-level operating margin after all franchise fees and site-specific occupancy costs. The following checks are decision-critical for the applicable format, market, and owner role.
- Request Item 19 substantiation. Confirm the Restaurant list, data extraction, delivery-platform adjustments, and whether a proposed site most closely resembles the military base, airport, mall food court, strip center, or Walmart cohort.
- Interview comparable franchisees. Ask for full-year Gross Sales and line items for food and packaging, hourly labor, payroll taxes and benefits, manager pay, occupancy, delivery commissions, royalty, Marketing Fund, Local Store Marketing, technology, insurance, repairs, and credit-card fees.
- Separate manager-run profit from owner labor. Determine who serves as the Item 15 Operating Partner, the expected weekly workload, whether a trained manager remains necessary, and whether the owner truly replaces a paid manager rather than adding another management layer.
- Resolve the Walmart rent language. Obtain written confirmation of the governing minimum rent and all Rent/CAM/Utility obligations for the specific Sub-Sublease.
- Reconcile mature and excluded outlets. Item 19 excludes 40 openings, 24 permanent closures, and 13 temporary closures during 2025. Ask how ramp-up, closures, remodels, transfers, and nontraditional hours affect the proposed Restaurant’s comparability.
- Review Item 20 turnover. The franchised system increased from 744 to 766 outlets in 2025, while 47 franchise outlets transferred to new owners. Ask why comparable outlets closed or transferred and what changed after transfer.
- Model financing separately. Use the buyer’s actual financed amount, interest rate, amortization, required reserves, and principal payments. Do not subtract the Item 7 initial investment from one year of Gross Sales.
- Preserve metric definitions. Confirm whether any seller-provided figure is Gross Sales, store-level operating profit, EBITDA, net income, owner compensation, distributions, or cash flow. Require the period, population, exclusions, and written calculation.
What is the strongest defensible earnings range?
The strongest defensible public estimate is approximately $5,900–$62,400 in annual manager-run, pre-tax owner earnings for one mature U.S. Charleys Restaurant. It is a Mode C scenario range anchored to official 2025 median Gross Sales, not an official Charleys profit disclosure. The most important driver is the actual Restaurant-level margin: every 1 percentage point at the $743,169 median equals roughly $7,432 per year.
An active owner who replaces a paid food service manager may have an estimated owner-operator benefit of roughly $80,800–$137,300, but approximately $74,880 of that comparison represents labor value rather than passive residual profit. The largest unresolved uncertainty is the absence of same-brand expense and owner-compensation data in Item 19. Before underwriting a location, a buyer should verify the Item 19 substantiation, obtain comparable franchisee profit-and-loss records, resolve format-specific obligations—especially Walmart rent—and separate operating profit, owner labor, debt service, and personal taxes.