How Much Does a Labor Finders Franchise Owner Make?

It discloses no sales, gross profit, operating profit, EBITDA, net income, cash flow, owner compensation, or owner earnings. This is an official finding for the current U.S. offer: the 2026 FDD states that the franchisor does not make representations about a franchisee’s future performance or the past performance of company-owned or franchised outlets. See 2026 FDD, Item 19, page 29.

Because Item 19 provides neither revenue nor profit data, no official Labor Finders “average owner salary” can be calculated. The FTC’s franchise-buying guide explains that a franchisor is not required to provide sales or earnings information, and that any financial performance claim it chooses to make generally belongs in Item 19 with its source, limitations, and assumptions.

The visible confidence rating is therefore LIMITED: the model uses a current same-brand company/affiliate revenue proxy, but the earnings margin comes from a broader government industry category rather than a Labor Finders franchised-office profit disclosure.

The estimate starts with a $1.50 million same-brand revenue proxy and applies a 2022 IRS employment-services all-in net-margin benchmark. Every resulting earnings number is estimated for one office and is not reported by the franchisor.

The IRS metric is an all-in tax-return margin and does not identify franchise-fee expense. To avoid charging an all-in margin with the same costs twice, the 3.5% Labor Finders royalty and $4,380 annual technology charge are not subtracted again. The scenarios instead assume those FDD obligations are absorbed within the modeled expense load. This treatment can overstate earnings if the IRS population is predominantly nonfranchised and has lower fee expense, which is a central reason for the LIMITED confidence rating.

It is derived from company/affiliate data, not franchised-office reporting. The 2025 audited consolidated statements report $133,442,180 of industrial staffing services revenue. Item 20 shows 92 corporate/affiliate outlets at the start of 2025 and 86 at year-end, producing a simple average count of 89. Dividing revenue by that average count gives $1,499,350 per average office.

This is a same-brand operating proxy, not Average Unit Volume. The consolidated accounts may allocate revenue and expenses differently from a stand-alone franchise; openings, closures, central functions, client concentration, and office maturity can distort a per-office division. The model therefore uses an explicit analytical spread of 80%, 100%, and 120% of the proxy rather than calling $1.50 million typical franchised-office sales. Source: 2026 FDD, Item 20 and Exhibit I, Consolidated Statements of Income, page 4.

It measures aggregate tax-return net income less aggregate deficits as a percentage of total receipts for U.S. corporations classified as “Employment services” in Tax Year 2022. It is an external benchmark, not a Labor Finders margin. The calculation is ($15.642 billion net income − $1.697 billion deficit) ÷ $310.927 billion total receipts = 4.485%, using the IRS Corporation Complete Report, Table 1.

The IRS category is broader than NAICS 561320 Temporary Help Services; it can include other employment-service businesses and corporations with multiple establishments. The benchmark is closer to tax-return net income than store-level EBITDA or cash flow. It generally reflects depreciation and financing-related interest reported by sampled corporations, while capital expenditures and loan principal are not separately modeled here.

• Revenue scenarios: 80%, 100%, and 120% of the $1,499,350 same-brand company/affiliate proxy. This spread is editorial, not FDD-reported.
• Margin scenarios: IRS benchmark minus 3 percentage points, the benchmark itself, and benchmark plus 3 percentage points: 1.485%, 4.485%, and 7.485% before franchise-specific fees.
• Ordinary operating costs: temporary-worker payroll, payroll taxes, workers’ compensation, office labor, manager wages, occupancy, local marketing, insurance, bad debt, administration, royalty, technology, and similar expenses are assumed to be reflected within the broad IRS margin.
• Owner compensation and cash treatment: no separate owner salary, draw, or distribution is deducted from manager-run residual profit. Depreciation and deductible business interest are embedded in the IRS aggregate; capital spending is not separately modeled beyond depreciation.
• Excluded from the published range: personal income taxes and financing principal payments. No uniform acquisition-loan amount is assumed.

They show manager-run pre-tax owner earnings ranging from about $18,000 to $135,000. The Base scenario produces approximately $67,000 by applying the 4.485% all-in industry net-margin proxy to the $1.50 million central revenue proxy.

Calculations use full-precision inputs and are shown to the nearest dollar. “Owner-operator benefit” adds $73,490 of manager labor value; it is not passive profit.

Active owner operation changes the economic result by the value of the manager role the owner performs. The 2026 FDD requires every office to have day-to-day supervision by an office manager and permits an individual franchisee or designated representative to manage one office. See Item 15, pages 25–26.

The BLS estimate excludes self-employed workers and represents wages rather than total employer cost. The model does not add benefits or payroll burden to the owner’s labor value. It also assumes one owner can perform the full manager function without requiring another paid manager, which should be verified against actual office workload and local operating practices.

The 3.5% royalty is the most direct recurring FDD charge in the model because it scales with gross customer billings. At the three modeled revenue levels, annual royalty expense is approximately $41,982, $52,477, and $62,973. The $4,380 software and LF Connect charge is fixed per office under the current FDD.

The FDD reports no advertising fund. Local advertising remains an operating expense controlled by the office within contractual limits, and the scenario assumes ordinary marketing expense is already reflected in the broad IRS margin. A social-media fee is not currently charged, although Item 6 estimates a possible future charge of $0 to $100 per month; it is excluded from the published scenarios.

Temporary staffing offices may have to fund worker payroll before customers pay invoices, so receivables timing can materially affect cash available to the owner. Item 10 states that Labor Finders may, at its discretion, finance qualifying temporary-worker payroll against approved receivables. The disclosed payroll-funding terms include interest and a weekly service fee, while working-capital loans have separate terms. Those costs are not added to the scenario because borrowing amounts and utilization differ by office.

Debt principal is also excluded from estimated pre-tax owner earnings. Personal income taxes are not calculated. Actual take-home pay depends on entity structure, state and local tax rules, deductions, owner compensation policy, and financing choices.

Item 20 shows a sizable mixed system but provides no performance sample. At December 31, 2025, Labor Finders reported 80 franchised outlets and 86 corporate/affiliate-owned outlets. During 2025, the franchised count declined from 83 to 80, while the corporate/affiliate count declined from 92 to 86. No new franchised outlet was reported for 2025, and the FDD projected no 2026 openings as of December 31, 2025.

These counts do not prove profit or loss. They do matter because the revenue proxy comes from consolidated company/affiliate operations, while the question concerns a franchised office. They also show why buyers should not multiply the one-office scenario across a required territory without accounting for additional managers, office opening schedules, shared overhead, office maturity, and the FDD’s population-based development obligations.

Item 20’s current and former franchisee contacts are more useful for validating owner earnings than a generic online salary estimate. The FTC recommends speaking with current and former franchisees about investment, operating experience, break-even, and actual financial outcomes.

A buyer should replace every proxy with office-level evidence wherever possible. The scenario is useful for framing questions, but it cannot establish the sales, margin, or owner compensation of a specific Labor Finders territory.

• Ask for the current FDD and confirm that Item 19 still makes no financial performance representation or identify any later amendment.
• Request written substantiation for any sales, profit, owner-income, or break-even statement made during the sales process, consistent with the FTC’s Item 19 guidance.
• Interview several current franchisees about annual customer billings, gross spread, office payroll, manager compensation, workers’ compensation, bad debt, receivable days, local advertising, and owner distributions.
• Separate one-office results from territory or multi-office results, including shared staff, additional office managers, ramp-up periods, and required opening schedules.
• For a resale, obtain the outlet’s actual records and reconcile customer billings to payroll, royalty reports, receivables aging, tax returns, and bank statements.
• Model payroll-funding and working-capital costs from the exact expected borrowing pattern rather than using a generic annual debt assumption.
• Confirm whether the owner will personally manage one office, how many hours that requires, and what replacement-manager compensation is realistic in the local labor market.
• Have an accountant distinguish operating profit, owner wages, distributions, retained cash, depreciation, interest, capital expenditures, financing principal, and personal taxes.