This is an independent owner-operator benefit range for a single-territory HOODZ business, with a base scenario of about $107,600. A manager-run model produces a lower estimated residual of roughly $5,400–$213,400 after a wage-only manager allowance. The 2026 Franchise Disclosure Document reports 2025 Gross Sales, not business profit or owner compensation.
Data basis. Legal franchisor: HOODZ International, LLC; see the official U.S. HOODZ franchise website. FDD issuance date: March 30, 2026. Item 19 covers unaudited 2025 Annual Gross Sales for 60 franchise owners operating 131 territories, including 30 Single-Territory Operators and 30 Multi-Territory Operators; businesses not open for the full calendar year were excluded. Item 19 does not report operating profit, EBITDA, Net Income, Owner Compensation, or Cash Flow; the official HOODZ earning-potential overview likewise directs qualified candidates to the current FDD for financial information. The closest external benchmark used here is the IRS Statistics of Income category “Administrative and support services,” not a HOODZ-specific margin. Confidence is Limited because the earnings calculation relies materially on that broad external margin rather than same-brand operating-cost data. Sources checked July 19, 2026.
What does HOODZ Item 19 actually measure?
Item 19 officially measures Annual Gross Sales and average ticket price, not owner earnings. For the 2025 calendar year, the relevant single-territory population consisted of 30 franchise owners, each operating one territory and open for the full year.
The FDD defines Annual Gross Sales as revenue received from operating the HOODZ Business. The definition can include separately stated sales-tax receipts, so it is not automatically identical to IRS business receipts. Item 19 also says its figures exclude the operating costs needed to convert sales into earnings, including royalties, advertising and marketing, administrative payroll, owner compensation, employee benefits, uniforms, utilities, professional fees, interest, depreciation, and taxes.
| Single-territory 2025 cohort | Operators | Average Gross Sales | Median Gross Sales |
|---|---|---|---|
| Bottom 50% group | 15 | $329,482 | $311,463 |
| All Single-Territory Operators | 30 | $737,104 | $507,905 |
| Top 50% group | 15 | $1,144,726 | $1,094,287 |
| All-group observed range | 30 | $193,019–$2,619,040 | Not a forecast range |
Source: 2026 Franchise Disclosure Document, Item 19, pp. 64–69. The bottom-half, all-group, and top-half medians are disclosed observations, not probabilities and not guaranteed outcomes.
How is the annual owner-benefit range estimated?
The estimate applies three transparent margins to three FDD-reported sales anchors. The base margin is 21.2%, calculated from the 2023 IRS nonfarm sole-proprietorship statistics using business receipts and net income less deficit for the broad “Administrative and support services” category. Conservative and Upside margins are the benchmark minus and plus 3 percentage points.
| Scenario | Revenue anchor | Modeled margin | Estimated owner-operator benefit |
|---|---|---|---|
| Conservative | Bottom 50% median Gross Sales: $311,463 | 18.2% | $56,600 |
| Base | All-operator median Gross Sales: $507,905 | 21.2% | $107,600 |
| Upside | Top 50% median Gross Sales: $1,094,287 | 24.2% | $264,500 |
Annual pre-tax analytical estimate; the three revenue anchors come from the 2026 FDD, while margins are independent assumptions.
Interpretation: Revenue dispersion drives most of the range. The chart should not be read as a probability distribution or as an Item 19 profit disclosure.
Sources: 2026 FDD, Item 19, pp. 64–69; IRS Statistics of Income, 2023 Nonfarm Sole Proprietorships, Table 1. Calculations rounded to the nearest $100.
What is included and excluded?
The scenario is closest to pre-tax owner benefit, not passive business profit. The IRS margin is based on sole proprietors, so net income can include compensation for the owner's own labor. It is after deductible business expenses reported on Schedule C, including interest and depreciation when claimed, but before personal income taxes and before financing principal payments.
- Franchise fees: Royalty, marketing, technology, and other recurring fees are not subtracted again from the IRS all-in margin, because the benchmark does not isolate them and a second subtraction could double count expenses. This is a major comparability limitation.
- Capital spending: Replacement vehicles, equipment, and capital expenditures are not separately modeled. Depreciation is reflected only indirectly in the IRS benchmark.
- Debt: Loan principal is excluded. Interest is captured only to the extent represented in the broad IRS population.
- Taxes: Personal federal, state, and local income taxes are excluded. No after-tax take-home estimate is published.
How does owner involvement change the result?
Active owner operation can add roughly $51,170 of labor value relative to a wage-only manager-run model. Item 15 requires a full-time Managing Owner or an approved Designated Manager with day-to-day responsibility, so the business is not structurally passive.
The manager-run comparison subtracts the 2024 BLS mean wage for First-Line Supervisors of Housekeeping and Janitorial Workers. It does not add employer payroll taxes, workers' compensation, health benefits, recruiting costs, or bonuses, so the manager-run residual may be overstated.
The distance between markers is the $51,170 wage-only manager assumption in every scenario.
Interpretation: The owner-operator figure includes labor value. The manager-run figure is closer to residual business profit, but it remains optimistic because employer payroll burden is not included.
Sources: scenario calculations above; U.S. Bureau of Labor Statistics, May 2024 Occupational Employment and Wage Statistics. Item 15 owner-role requirements: 2026 FDD, pp. 58–59.
How much do disclosed franchise fees matter?
At the $507,905 median sales anchor, the clearly quantifiable core fees can reach about $58,990 before account-specific charges. That illustration consists of a 10% Royalty, the current $60 weekly Technology Fee, and a possible Brand Marketing Fee up to 1% of Gross Sales.
| Recurring obligation | FDD term | Illustration at $507,905 sales | Scenario treatment |
|---|---|---|---|
| Royalty | 10% below $1 million; lower rates may apply after stated thresholds are achieved | $50,791 | Not separately subtracted from the all-in IRS margin |
| Technology Fee | $60 per week | $3,120 | Comparability risk within the all-in margin |
| Brand Marketing Fee | Up to 1% of Gross Sales when established | Up to $5,079 | Not assumed to be currently assessed |
| NORA Fee | Up to 5% of Gross Sales from managed national or regional accounts | Account-specific | Excluded because the revenue mix is unknown |
Source: 2026 FDD, Item 6, pp. 12–19. This fee illustration is diagnostic and is not added to the scenario result because the IRS benchmark is already an all-in net-income measure.
What could move actual earnings outside the range?
The largest unresolved uncertainty is the absence of same-brand operating-cost and profit data. The FDD provides a strong sales distribution, but it does not disclose labor ratios, direct service costs, vehicle expense, insurance, customer-acquisition cost, bad debt, manager pay, or owner compensation.
- Territory format: The FDD offers Standard, Express, and Conversion businesses, but Item 19 does not separate sales results by those formats. The closest federal industry classification is Census NAICS 561790, Other Services to Buildings and Dwellings, which is broader than commercial kitchen exhaust cleaning.
- Maturity selection: Item 19 excludes businesses not open for the full 2025 calendar year, so the reported cohort does not describe start-up ramp performance.
- Sales definition: Annual Gross Sales may include separately stated sales-tax receipts, while the IRS benchmark uses tax-return business receipts.
- Business form: The margin proxy comes from sole proprietorships. A HOODZ franchise may operate through an LLC or corporation with different payroll and tax treatment.
- Owner labor: The proxy can embed the economic value of work performed by the proprietor, making it closer to owner benefit than passive operating profit.
- Multi-territory data: The 30 Multi-Territory Operators owned two to seven territories. Their $1,320,416 median is a portfolio-level result and cannot be divided into a reliable per-territory figure.
What should a buyer verify before relying on this range?
A buyer should replace the external margin proxy with actual HOODZ expense evidence whenever possible. The FTC guide to evaluating franchise earnings claims advises prospects to examine Item 19 limitations, request written substantiation, and compare the claim with current and former franchisee experience.
- Request Item 19 written substantiation and confirm how Annual Gross Sales were extracted, adjusted, and tested.
- Ask Single-Territory Operators for 2025 and trailing-12-month labor, vehicle, insurance, supplies, marketing, bad-debt, and manager-cost ratios.
- Confirm whether the Brand Marketing Fund is currently active and how often NORA fees apply to the territory's likely account mix.
- Separate owner wages or draws from business profit, retained earnings, and distributions in every franchisee interview.
- Compare Standard, Express, and Conversion economics rather than assuming Item 19's mixed population applies equally to each format.
- Model debt interest and principal from the buyer's actual financing terms, not from a generic leverage assumption.
What is the strongest defensible earnings view?
The strongest defensible range is approximately $56,600 to $264,500 in annual owner-operator benefit for a mature single-territory business, with a base analytical result near $107,600. It is scenario-based, not official HOODZ profit data. The most important earnings driver is territory sales volume; the next major driver is whether the owner performs the required full-time management role or pays a manager.
The largest uncertainty is the lack of same-brand expense and owner-compensation data. A manager-run residual may be only about $5,400 in the Conservative scenario and about $56,400 in the Base scenario before payroll burden, debt principal, capital expenditures, and personal taxes. Before making a decision, a buyer should verify Item 19 substantiation, actual fee incidence, manager costs, and normalized owner earnings with multiple current and former franchisees.