For a single-territory, owner-operated Footprints Floors business, the strongest defensible 2025-based range is approximately $15,000 to $100,000 in annual pre-tax owner-operator benefit, with a base scenario near $55,000. This is not passive business profit: it includes the value of the full-time management and sales work performed by the owner.
This range is an independent analytical scenario, not an Item 19 financial performance representation by Branches Company, LLC. It combines identified facts from the April 17, 2026 Franchise Disclosure Document with clearly identified proxy and editorial assumptions. Actual results can differ materially because of territory quality, service mix, Gross Sales, Direct Cost of Goods Sold, subcontractor pricing, marketing efficiency, vehicle and insurance costs, financing, owner involvement, and execution. Confidence is Limited because the FDD does not disclose a complete franchised-outlet expense statement or owner-income measure.
- Legal franchisor
- Branches Company, LLC, doing business as Footprints Floors; parent company Pilgrim, LLC owns the Licensed Marks.
- Current disclosure
- 2026 Franchise Disclosure Document, issued April 17, 2026. Item 19 reports 2025 Gross Sales and Direct Gross Profit, but not franchised-outlet Operating Profit, EBITDA, Net Income, Cash Flow, or Owner Compensation.
- Population used
- Thirty-three Operational Franchise Outlets with one Territory, each open before January 1, 2025 and operating for the full 2025 calendar year.
- External benchmark
- The U.S. Bureau of Labor Statistics 2024 median wage for construction managers employed by specialty trade contractors is used only to illustrate the cost of replacing an active owner with a paid manager.
- Date checked
- July 13, 2026. The official U.S. Footprints Floors franchise website was reviewed for the current operating-model description; the current FDD controls where marketing language and disclosure terms differ.
Pre-tax, before financing costs and personal taxes; includes active owner labor.
Weighted from the FDD's 17-outlet top half and 16-outlet bottom half.
Before management labor, marketing, vehicle, insurance, franchise fees, and general overhead.
A subset of the 79 Operational Franchise Outlets included in Item 19.
6% royalty, 2.5% Contact Center, and 0.25% Brand Development Fund, subject to minimums.
BLS 2024 median wage; payroll taxes and benefits would increase the employer cost.
What does the 2026 Footprints Floors FDD actually measure?
Officially, Item 19 measures 2025 Gross Sales and Direct Gross Profit for defined outlet cohorts; it does not disclose annual owner earnings. For the 33 single-territory Operational Franchise Outlets, the top half averaged $627,854 in Gross Sales and $279,536 in Direct Gross Profit, while the bottom half averaged $268,583 in Gross Sales and $110,812 in Direct Gross Profit. These are historical per-outlet results, not per-owner income.
The FDD defines Direct Cost of Goods Sold narrowly as flooring materials, field labor, and subcontractor installation costs. It excludes managerial and administrative labor, marketing, vehicles, insurance, interest, taxes, depreciation, amortization, and franchise fees. Therefore, Direct Gross Profit is a contribution measure, not Operating Profit, EBITDA, Net Income, Cash Flow, or take-home pay. Source: 2026 Franchise Disclosure Document, Item 19, pp. 35–48.
| Single-territory cohort | Outlets | Average Gross Sales | Average Direct Gross Profit |
|---|---|---|---|
| Bottom half — official Item 19 row | 16 | $268,583 | $110,812 |
| All single-territory outlets — derived weighted average | 33 | $453,662 | $197,730 |
| Top half — official Item 19 row | 17 | $627,854 | $279,536 |
The all-outlet figures are derived as weighted averages of the FDD's mutually exclusive top-half and bottom-half rows. Small rounding differences are possible because the published cohort averages are rounded.
The derived $453,662 average Gross Sales figure is a revenue anchor only. The associated $197,730 Direct Gross Profit still has to fund marketing, vehicles, insurance, royalty, Brand Development Fund, Contact Center, website, technology, general overhead, and either the owner's labor or a manager's wage.
How broad is the reporting population?
Officially, the 2025 Item 19 tables include 79 Operational Franchise Outlets: 46 multi-territory and 33 single-territory outlets. The FDD identifies 96 franchise outlets in the system during 2025 and indicates that 17 were not included in the performance tables: eight new outlets, seven outlets that closed during the year, and two operational outlets excluded for interruption, nonrepresentative activity, inadequate records, or nonreporting. That means the results describe full-year operating survivors rather than every outlet exposed to the system during 2025.
Item 20 separately reports that franchised outlets declined from 86 at the beginning of 2025 to 84 at year-end, with six openings, six terminations, and two outlets ceasing operations for other reasons. Source: 2026 Franchise Disclosure Document, Item 20, pp. 49–53. The FTC Franchise Rule explains why a disclosure document's defined population and Item 20 outlet history matter to a buyer's risk assessment.
How does Gross Sales become estimated owner-operator benefit?
Estimated owner-operator benefit is $15,901 in the Conservative scenario, $55,258 in the Base scenario, and $99,432 in the Upside scenario. These independent estimates apply to a single Territory and use 2025 franchised-outlet revenue and Direct Gross Profit anchors, current 2026 recurring franchise fees, selected same-brand company-operated expense ratios, and an explicit reserve for expenses Item 19 does not disclose.
The calculation is: Direct Gross Profit minus marketing, vehicle, insurance, current recurring franchise fees, listed fixed recurring charges, and an unreported-overhead reserve. It excludes owner salary because the result is labeled owner-operator benefit; it also excludes personal income taxes, financing interest and principal, depreciation, major capital expenditures, and distributions. A financing payment would reduce cash available to the owner dollar for dollar.
Annual pre-tax benefit for one Territory, before financing and personal taxes
Interpretation: the model's center is approximately $55,000, but this is not a probability-weighted forecast or “most likely” result. The scenario spread reflects disclosed performance dispersion and explicit overhead sensitivity.
Source: 2026 Franchise Disclosure Document, Items 6 and 19, pp. 5–10 and 35–48; calculations shown below.
| Annual bridge | Conservative | Base | Upside |
|---|---|---|---|
| Gross Sales anchor | $268,583 | $453,662 | $627,854 |
| Direct Gross Profit | $110,812 | $197,730 | $279,536 |
| Marketing, vehicle, and insurance proxy | −$37,869 | −$63,966 | −$88,527 |
| Royalty, Contact Center, and Brand Fund | −$24,030 | −$39,761 | −$54,937 |
| Website, minimum technology, BBB, conference | −$11,525 | −$11,525 | −$11,525 |
| Unreported-overhead reserve | −$21,487 | −$27,220 | −$25,114 |
| Estimated owner-operator benefit | $15,901 | $55,258 | $99,432 |
Calculations use full-precision percentages and are rounded only for publication; displayed bridge components may differ from the final result by $1 because of rounding.
Which assumptions are official, proxied, or editorial?
The revenue, Direct Gross Profit, and current recurring fee terms are FDD-based; the expense bridge is partly proxied and partly editorial. It applies to the 2025 single-territory population and assumes a flooring-focused business with one website and the minimum technology charge.
- Official FDD facts: the Conservative and Upside anchors are the single-territory bottom-half and top-half averages; the Base anchor is their compatible weighted average. Current Item 6 rates are 6% royalty, 2.5% Contact Center, and a Brand Development Fund charge of the greater of 0.25% of Gross Sales or $100 per month.
- Same-brand proxy: marketing at 10.2% of sales, vehicle at 1.8%, and insurance at 2.1% come from the sole company-operated outlet in Item 19. That outlet operated five Territories, was mature, and offered Footprints Bath and Tile Services, so its expense ratios may not match a single-territory franchise.
- Fixed current charges: $6,000 for one managed website, $4,200 minimum technology fee, $325 Better Business Bureau fee, and $1,000 conference fee. Employee-based technology charges, conference travel, and optional services are not included.
- Editorial reserve: 8% of sales in Conservative, 6% in Base, and 4% in Upside for accounting, communications, office supplies, licenses, payment processing, travel, routine noncapital repairs, and other operating or general expenses absent from Item 19.
- Not modeled: Bath and Tile's second required website, additional vehicles, commercial office rent, customer refunds, debt service, major replacement capital, personal taxes, or owner-specific benefits.
How does owner involvement change the annual result?
Estimated manager-run residual earnings are negative in all three single-territory scenarios after deducting only a $102,140 manager wage: approximately −$86,000, −$47,000, and −$3,000. These are scenario results, not official Footprints Floors figures, and they are optimistic because the BLS wage excludes employer payroll taxes, insurance, and benefits.
Item 15 requires a Managing Owner to devote full-time efforts to daily management and supervision, but it permits an approved, trained manager to assume on-site responsibility. The economic distinction is substantial: an owner-operator benefit contains both residual business economics and compensation for the owner's labor, whereas a manager-run result deducts the market value of that labor.
One-Territory annual scenarios after a $102,140 manager wage; $000s
Interpretation: at the single-territory sales levels modeled here, replacing the active owner with a market-paid construction manager consumes the entire operating benefit. Multi-territory scale could alter that relationship, but multiplying one-unit economics without shared-overhead and ramp assumptions would be unreliable.
Benchmark source: U.S. Bureau of Labor Statistics, Construction Managers, May 2024 median wage of $102,140 for specialty trade contractors. The BLS Occupational Employment and Wage Statistics tables describe the underlying wage program.
The model does not support describing a one-Territory Footprints Floors business as passive income. A buyer considering manager-run ownership should obtain written, same-format evidence showing whether mature single-territory outlets can support a full manager compensation package after all operating expenses.
Which FDD fees most directly reduce owner earnings?
Officially, the largest current recurring charges tied directly to sales are the 6% royalty and 2.5% Contact Center fee, followed by the Brand Development Fund and required local marketing. These 2026 terms apply to U.S. franchised businesses and are separate from the initial franchise fee and Item 7 startup investment.
| Current obligation | FDD term | Scenario treatment |
|---|---|---|
| Royalty | Greater of 6% of Gross Sales or the applicable monthly minimum | 6% of annual scenario sales; monthly timing risk remains |
| Contact Center | Currently 2.5% of Gross Sales, minimum $200 per month; may reach 4% | 2.5% of scenario sales |
| Brand Development Fund | Currently greater of 0.25% of Gross Sales or $100 per month; may reach the greater of 2% or $500 per month | Greater of 0.25% or $1,200 annually |
| Local marketing | $1,000 per Territory per month | Included within the 10.2% company-operated marketing proxy; not subtracted twice |
| Technology | Minimum $350 per month plus employee and optional-service charges | $4,200 minimum only |
| Managed website | $500 per website per month; at least two websites for Bath and Tile | One $6,000 website; Bath and Tile increment excluded |
Source: 2026 Franchise Disclosure Document, Item 6, pp. 5–10. The initial investment of $81,905 to $118,330 for one Territory in Item 7 is a startup funding requirement, not an annual operating expense, and it is not subtracted from one year's Gross Sales. Item 10 states that the franchisor does not offer direct or indirect financing, so any loan structure is buyer-specific.
What could move the earnings range most?
The largest unresolved uncertainty is the amount of managerial, administrative, and general operating expense below Direct Gross Profit for a comparable single-territory franchise. Item 19 does not report that complete expense stack, and the only detailed same-brand expense proxy is a mature company-operated business covering five Territories. Therefore, the final owner-benefit range has Limited confidence even though its revenue anchors are same-brand FDD data.
Other material drivers are the direct gross margin on each project, paid-lead efficiency, subcontractor pricing, whether Bath and Tile is offered, vehicle count, commercial-office use, customer refunds, local licensing, and the owner's ability to perform the full-time Managing Owner role. The 2025 single-territory cohort also mixes outlet ages: six operated one to two full calendar years, eight operated two to three years, and 19 operated more than three years.
The scenario band should be read as sensitivity, not as odds. A result below the lower case remains possible when jobs are underpriced, lead conversion is weak, rework rises, or fixed obligations are spread over too little volume. A result above the upper case is also possible, but the available disclosure does not establish how frequently a comparable owner achieves it after every cost. The range is therefore a disciplined planning interval rather than a prediction.
What should a buyer verify before relying on the range?
A buyer should treat the following as verification work, not assumptions. The questions apply to the current U.S. offer, the one-Territory format, and the most recent comparable operating period available during diligence.
- Request the written substantiation behind 2026 FDD Item 19 and reconcile the single-territory cohort totals, exclusions, service mix, and outlet-age bands.
- Ask for a complete anonymized profit-and-loss template that starts with Gross Sales and reaches Operating Profit after owner or manager compensation, merchant fees, software, insurance, vehicles, refunds, and all required marketing.
- Interview current and former franchisees listed in Item 20, including owners in the bottom half, recent terminations, transfers, and outlets that ceased operations—not only top performers.
- Separate owner salary or labor value from distributions and retained business profit. Ask how many hours the Managing Owner works and which duties a paid manager would replace.
- Model the actual territory's royalty minimums, Brand Development Fund minimum, local marketing requirement, website count, technology users, vehicle count, and insurance quotes.
- Run debt service outside operating earnings and test the lender's actual rate, term, financed amount, origination costs, and required working capital. Do not convert pre-tax business cash flow into after-tax take-home pay.
The FTC Franchise Rule Compliance Guide provides the regulatory context for financial performance representations and substantiation. The U.S. Census Bureau NAICS reference for Flooring Contractors is useful when testing whether any external contractor benchmark is actually comparable to the Footprints Floors service format.
What is the strongest defensible annual earnings conclusion?
The strongest defensible conclusion is a scenario-based annual owner-operator benefit of roughly $15,000 to $100,000 for one mature-enough Territory, with a transparent base case near $55,000. It is not an official owner-income disclosure. The most important earnings driver is the spread between Gross Sales and Direct Cost of Goods Sold, followed by marketing efficiency. The largest uncertainty is the unreported labor and general-overhead stack below Direct Gross Profit.
A manager-run single-Territory model is materially weaker: deducting the BLS specialty-trade construction-manager wage produces negative residual earnings in all three scenarios before payroll burden. A buyer should therefore verify Item 19 substantiation, full profit-and-loss statements, manager compensation, and bottom-half franchisee experience before treating any revenue or Direct Gross Profit figure as personal income.