This is an independent scenario range for annual pre-tax business Net Income before owner compensation for one established Color Me Mine studio. The base reference is $139,826. The strongest official evidence is the 2025 U.S. Franchise Disclosure Document’s 29.18% average Net Income margin for 41 franchised outlets that submitted 12-month profit-and-loss statements for calendar 2024. Because the FDD excludes owner compensation from Labor, the figure is not after-tax take-home pay and may partly compensate an active owner for work performed.
The dollar figures above are analytical scenarios, not an Item 19 financial performance representation by Color Me Mine LLC. They combine identified 2025 FDD revenue facts with the FDD’s separately reported 2024 average Net Income margin. Actual results can differ materially by location, studio maturity, Gross Revenue, staffing, owner involvement, rent, local advertising, financing, and execution.
- Legal franchisor
- Color Me Mine LLC, a Louisiana limited liability company offering U.S. ceramic and craft studio franchises.
- Official earnings evidence
- 2025 Color Me Mine Franchise Disclosure Document, Item 19, pages 33–38: 29.18% average Net Income for 41 franchised outlets reporting calendar-year 2024 P&Ls.
- Revenue evidence
- Item 19, pages 35–37: 109 franchised outlets operating and reporting Gross Revenue for all 12 months of the fiscal year ended September 30, 2025.
- Owner-role evidence
- Item 15, pages 25–26: the owner or a general manager must devote at least 40 hours per week to management and operation.
- External benchmark
- U.S. Bureau of Labor Statistics, May 2023, SOC 11-9072, used only for a dated manager-wage sensitivity—not as a Color Me Mine earnings claim.
- Date checked
- July 14, 2026. Official operating context was cross-checked against the Color Me Mine U.S. franchise website and its current investment and studio-format page.
Item 19 Table 6, 41 franchised outlets, calendar 2024; owner compensation excluded from Labor.
All 109 franchised outlets in the 2025 full-year revenue population.
The earnings-margin sample; franchisee-prepared statements were not audited by the franchisor.
The 2025 Gross Revenue population excludes three studios temporarily closed for relocation or remodeling.
Item 15 requires this commitment from the owner or a general manager.
How much may a Color Me Mine owner earn annually?
A defensible scenario range is $89,441 to $223,154 in annual pre-tax business Net Income before owner compensation, with a base reference of $139,826. These are estimated per-studio results for established franchised outlets, not official dollar earnings. The calculation applies the official 29.18% average Net Income margin to the 2025 bottom-20%, all-system, and top-20% median Gross Revenue observations.
The formula is: scenario Gross Revenue × 29.18% average Net Income margin. Calculations use full precision and are rounded to the nearest dollar. The revenue anchors cover the fiscal year ended September 30, 2025; the margin covers calendar 2024 and a different reporting population, so the cross-period combination lowers certainty.
| Scenario | 2025 Gross Revenue anchor | Official margin applied | Estimated pre-tax Net Income |
|---|---|---|---|
|
Scenario Conservative |
Bottom 20% median | $306,516 × 29.18% | $89,441 |
|
Scenario Base |
All-outlet median | $479,183 × 29.18% | $139,826 |
|
Scenario Upside |
Top 20% median | $764,751 × 29.18% | $223,154 |
Each column applies the same official 29.18% average Net Income margin to a different 2025 median Gross Revenue cohort.
Interpretation: Gross Revenue variation drives most of the scenario spread. The top-20% median revenue anchor is about 2.5 times the bottom-20% median.
Source and calculation: 2025 Color Me Mine FDD, Item 19, Tables 1–4, pages 35–36, and Table 6, page 37. Dollar Net Income is independently calculated and is not reported by Color Me Mine LLC.
The 2025 median Gross Revenue of $479,183 is customer revenue, not owner income. Item 19’s separate Net Income definition deducts Cost of Goods Sold, Labor, Rent, and Miscellaneous Costs. The base scenario reaches $139,826 only by applying the 29.18% average Net Income ratio, and that ratio may not hold at a specific studio or revenue tier.
What does the official 29.18% Net Income figure actually measure?
It is an official average studio-level Net Income margin for 41 franchised outlets in calendar 2024, not a salary, distribution, cash-flow figure, or after-tax owner take-home amount. Color Me Mine LLC defines Net Income as Gross Revenue minus Cost of Goods Sold, Labor, Rent, and Miscellaneous Costs.
Item 19 states that Cost of Goods Sold includes bisqueware, paint, merchandise bags, royalties, and advertising-fund contributions. Labor includes employee wages, payroll-service expenses, and payroll taxes, but excludes owner compensation. Rent includes base rent and additional landlord charges for real estate taxes, insurance, utilities, and common-area maintenance. Miscellaneous Costs include supplies, marketing, utilities, repairs, maintenance, and similar costs not placed in the other categories.
The five official average percentages reconcile to 100% for the 41 reporting franchised outlets.
Interpretation: Labor is the largest disclosed expense category. A studio’s staffing structure and wage market can therefore change owner economics materially even when sales are unchanged.
Source: 2025 Color Me Mine FDD, Item 19, Table 6 and definitions, pages 34–37. Percentages are official averages; the franchisor states that the submitted franchisee P&Ls were not audited.
The FDD does not separately identify interest, depreciation, capital expenditures, financing principal, or owner distributions in Table 6. The scenario range should therefore be read as an operating Net Income proxy under the FDD definition—not free cash flow and not personal take-home pay. Personal income taxes depend on entity structure, jurisdiction, deductions, and the owner’s circumstances and are not estimated here.
Are franchise fees already reflected in the earnings margin?
The 5% Royalty and current 1% Advertising Fund Fee are explicitly included in Item 19’s Cost of Goods Sold definition, so subtracting them again would double count them. Local Advertising and the Technology Fee are recurring obligations, but Item 19 does not isolate their exact placement or amount within the 41-outlet averages. The safest treatment is to avoid a second deduction and verify their actual P&L classification with the franchisor and franchisees.
| Recurring obligation | 2025 FDD amount | Item 19 treatment | Earnings-model treatment |
|---|---|---|---|
| Royalty | 5% of monthly Gross Revenues | Explicitly included in Cost of Goods Sold | Not deducted again |
| Advertising Fund Fee | Currently 1%; may increase to 2% | Explicitly included in Cost of Goods Sold | Not deducted again at the current rate |
| Local Advertising | Greater of $500 or 2% of Gross Revenues per month | Marketing is within Miscellaneous Costs, but exact inclusion is not quantified | No separate deduction; verify actual spend |
| Technology Fee | $239 per month, or $2,868 annualized; subject to increase | Not separately identified in Table 6 | No separate deduction; verify classification and current rate |
Source: 2025 Color Me Mine FDD, Item 6, pages 5–7, and Item 19, pages 34–37. The $2,868 figure is $239 multiplied by 12 months. Item 7 startup investment is not treated as an annual operating expense.
How does owner operation versus manager-run operation change the result?
An active owner may capture the scenario Net Income as an estimated owner-operator benefit, but part of that amount can be compensation for at least 40 hours of weekly management work rather than passive business profit. A manager-run studio may leave less residual cash for the owner because a general manager’s compensation is an operating cost. The FDD permits either structure, but it does not disclose which structure the 41 P&L outlets used.
To show the sensitivity—not to predict payroll—the chart subtracts one $73,460 national median annual wage for Entertainment and Recreation Managers, Except Gambling, as reported by the U.S. Bureau of Labor Statistics for May 2023. The occupation is a broad proxy, the wage is dated, and the calculation excludes payroll taxes, benefits, recruiting costs, geographic differences, and any manager wage already embedded in the Item 19 Labor ratio. More recent OEWS releases are available through the BLS Occupational Employment and Wage Statistics tables.
The teal circle is the scenario Net Income before owner compensation; the outlined square is the residual after subtracting the 2023 national median manager wage.
Interpretation: The owner’s role can move the economic result by the market value of management labor. The active-owner figure is an owner-operator benefit, not passive profit; the manager-run residual is only a diagnostic sensitivity.
Sources and calculation: 2025 Color Me Mine FDD, Item 15, pages 25–26; BLS May 2023 SOC 11-9072 median annual wage of $73,460; scenario Net Income minus $73,460. This does not include employer payroll burden or benefits and may double count manager labor already present in the FDD sample.
The FDD’s exclusion of owner compensation from Labor is economically important. A working owner can receive salary, draws, or distributions from the business, but those payment forms do not create additional operating profit. Buyers should compare total owner benefit with the hours and functions the owner actually performs.
Why is the evidence confidence Moderate rather than High?
The FDD directly reports an earnings measure, but the dollar range requires combining a 2024 average margin from 41 P&L reporters with 2025 revenue medians from a different population. The result is stronger than a generic industry-margin estimate, yet several unresolved compatibility and sample questions prevent a High confidence label.
- The P&L sample is selective. Forty-one franchised outlets submitted 12-month calendar-2024 statements; the FDD does not state the Gross Revenue distribution of those 41 outlets or whether they are representative of all studios.
- The source periods differ. Table 6 uses calendar 2024, while the revenue cohorts use the fiscal year ended September 30, 2025. No inflation or margin adjustment is made.
- Owner involvement is unidentified. Item 19 does not disclose how many reporting outlets were owner-operated, manager-run, or used a hybrid staffing model.
- The 2025 revenue cohort is mature. Its 109 full-year studios had been open for 16.14 years on average, so new-unit ramp-up performance may differ substantially.
- Temporarily closed units were excluded. Three studios closed for relocation or remodeling during 2025 were omitted from the full-year revenue tables.
- Cash-flow items are not separated. Table 6 does not isolate depreciation, capital expenditures, interest, debt principal, owner draws, or distributions.
What does Item 20 add to the interpretation?
Item 20 shows a growing U.S. franchised outlet count, but it does not establish profitability. Franchised outlets increased from 112 at the start of fiscal 2025 to 124 at year-end, with 12 openings, no reported terminations, nonrenewals, reacquisitions, or other cessations, and seven ownership transfers. Because newly opened studios generally were not eligible for the 12-month Item 19 revenue population, the earnings scenarios should not be treated as first-year expectations.
As of September 30, 2025, 24 franchise agreements were signed for outlets not yet open; four had opened by the FDD issuance date. This makes ramp-up verification especially important for buyers comparing mature-system medians with a new studio.
What should a buyer verify before relying on the range?
A buyer should obtain the Item 19 written substantiation and test the scenario against actual franchisee P&Ls for comparable markets, rent levels, studio ages, and owner roles. The Federal Trade Commission’s Franchise Rule Compliance Guide explains the framework governing financial performance representations; the franchisor states in Item 19 that written substantiation is available on reasonable request.
- Ask for the Gross Revenue and Net Income distribution of the 41 Table 6 outlets, not only the average percentages.
- Confirm whether owner salaries, general-manager wages, payroll taxes, benefits, and family labor appear consistently in each P&L.
- Request separate results for owner-operated and manager-run studios, if available, and compare weekly owner hours.
- Verify current Royalty, Advertising Fund, Local Advertising, Technology Fee, credit-card, insurance, repair, and required-supplier costs.
- Compare proposed rent and common-area charges with Item 19’s 13.38% average Rent ratio and with local lease terms.
- Interview full-year mature operators, recent openings, transferred studios, and former franchisees listed in Item 20 or Exhibit G.
- Separate operating Net Income from debt service, kiln or equipment replacement, remodel costs, owner distributions, and personal taxes.
- Review the franchisor’s official owner-profile information and training and operating-support description, then confirm how those requirements affect staffing and owner time in writing.
What is the strongest defensible earnings conclusion?
The strongest defensible annual range is $89,441 to $223,154 in estimated pre-tax business Net Income before owner compensation, with a $139,826 base reference. The official same-brand evidence is the 29.18% average Net Income margin; the dollar figures are scenario-based because the FDD does not report dollar Net Income for the 41-outlet P&L sample.
The most important earnings driver is Gross Revenue, followed by Labor and the owner-versus-manager staffing structure. The largest unresolved uncertainty is whether the 41 reporting outlets—and their owner involvement—are comparable to the buyer’s market and proposed operation. Before underwriting the range, verify Item 19 substantiation, owner and manager compensation treatment, current recurring fees, actual debt service, capital spending, and comparable franchisee P&Ls through direct interviews.