Estimated owner-operator benefit: For a home-based Oxi Fresh Carpet Cleaning operator using the 2026 FDD’s 2025 sales bands, the strongest evidence-led independent scenario is approximately $14,000 to $36,500 annually, with a base case near $23,600. This is a pre-tax net-income proxy before financing principal and personal income taxes. Because the benchmark is based on sole proprietorship returns, the result includes the economic value of work performed by the owner. After subtracting a full-time manager wage proxy, the same scenarios range from approximately -$35,100 to -$12,700 before employer payroll burden.
What does Oxi Fresh Item 19 actually report?
Officially, Item 19 reports sales—not owner earnings. The 2026 FDD shows 2025 “annual total sales” per Active Operator, along with jobs completed, average job price, medians, fifth-based performance groups, and ranges. It states expressly that no operating expenses are deducted and that the table makes no attempt to show actual or potential profit.
| 2025 Active Operator group | Median annual total sales | Median jobs | Median job price |
|---|---|---|---|
| Top fifth | $323,939.07 | 1,255 | $251.31 |
| Second fifth | $150,781.46 | 598.5 | $259.57 |
| Middle fifth | $111,263.47 | 484 | $228.95 |
| Fourth fifth | $76,900.20 | 336 | $231.25 |
| Lower fifth | $38,868.81 | 163.5 | $226.59 |
| All Active Operators | $110,980.59 | 469 | $239.36 |
Source: Oxi Fresh Franchising Co., Inc. 2026 Franchise Disclosure Document, Item 19, pages 47–50. The fifths contain 35 or 36 Active Operators. Of 199 U.S. franchisees open for the full year and completing at least one job, 178 met the Active Operator test, representing 89.4%; those operators ran 396 of the 403 businesses in that full-year population. Results are grouped per operator, not per territory, and some operators own multiple Oxi Fresh Businesses.
How is the owner-earnings range calculated?
The range multiplies three official Item 19 sales bands by an official IRS owner-operator margin benchmark. Conservative, Base, and Upside use the fourth-fifth, middle-fifth, and second-fifth median sales figures from the 2025 Active Operator table. The central margin is 21.2%, derived from Tax Year 2023 IRS Statistics of Income data for nonfarm sole proprietorships in Administrative and Support Services. The 18.2% and 24.2% scenario margins are an explicit sensitivity of minus or plus 3 percentage points. The FDD bands are historical observations, not probabilities or promises.
Pre-tax net-income proxy before financing principal and personal income taxes.
Interpretation: Revenue band and margin sensitivity both move the result. Source: 2026 FDD Item 19; IRS Tax Year 2023 nonfarm sole-proprietorship statistics; independent calculations by FranchisesBiz.
| Calculation component | Conservative | Base | Upside |
|---|---|---|---|
| Official median sales anchor | $76,900 | $111,263 | $150,781 |
| Owner-operator margin proxy | 18.2% | 21.2% | 24.2% |
| Estimated owner-operator benefit | $13,977 | $23,560 | $36,452 |
| BLS full-time manager wage proxy | -$49,109 | -$49,109 | -$49,109 |
| Estimated manager-run residual | -$35,132 | -$25,548 | -$12,657 |
What does the IRS margin measure?
It is a broad owner-operated net-income proxy, not an Oxi Fresh result. IRS Table 1 reports approximately $114.423 billion of business receipts and $24.229 billion of net income less deficit for nonfarm sole proprietorships in Administrative and Support Services for Tax Year 2023. Dividing net income by receipts produces 21.175%, rounded to 21.2%. The sector is broader than NAICS 561740 Carpet and Upholstery Cleaning Services, so the model receives a Limited confidence rating.
Why are FDD fees not subtracted again?
The IRS margin is an all-in net-income measure after reported business deductions. Subtracting the Royalty Fee, Job Fee, Advertising and Technology Fee, and supply costs again would risk double-counting expenses. The fee section below identifies the actual Oxi Fresh obligations a buyer must test against franchisee profit-and-loss statements. A franchisee whose fee and operating burden exceeds the broad IRS pattern could earn less than this scenario.
- Owner labor: Sole-proprietor net income does not deduct a salary for the proprietor. The estimated owner-operator benefit therefore includes compensation for the owner’s work and is not passive business profit.
- Margin sensitivity: Conservative and Upside use the IRS benchmark minus and plus 3 percentage points. That spread is editorial analysis, not IRS or FDD-reported variability.
- Interest and depreciation: The IRS net-income measure reflects reported business deductions at the broad-sector level, including interest and depreciation where claimed. The model does not isolate those items for Oxi Fresh.
- Manager-run labor: The separate manager-run analysis deducts one full-time Operations Manager wage proxy. The broad IRS benchmark already reflects payroll reported across the sector, so this is an incremental owner-role sensitivity rather than a staffing forecast. Employer payroll taxes, benefits, and any additional technicians would lower the residual further.
- Excluded: Personal income taxes, financing principal payments, owner draws or distributions, retained-earnings decisions, and major capital expenditures beyond depreciation embedded in the benchmark.
How much does owner involvement change the result?
Owner involvement changes the modeled outcome by approximately $49,100 before payroll burden. The owner-operated range includes both residual business income and compensation for work performed. When one full-time manager wage proxy is deducted, every scenario becomes negative: approximately -$35,100 in Conservative, -$25,500 in Base, and -$12,700 in Upside. This does not prove that every manager-run operation loses money; it shows that the selected 2025 sales bands and broad owner-operator margins do not support a full-time manager under these assumptions.
The manager-run point subtracts a $49,109 annual BLS wage proxy from each owner-operated scenario.
Interpretation: At these sales and margin combinations, replacing the owner’s labor with one full-time manager consumes more than the modeled owner benefit. Wage source: BLS May 2025 national occupational wage table; the $49,109 figure is derived from the $23.61 median hourly wage for First-Line Supervisors of Housekeeping and Janitorial Workers.
Which FDD fees materially affect annual earnings?
The most material disclosed recurring obligations are the flat Royalty Fee, per-job scheduling charge, Advertising and Technology Fee, and minimum designated purchases. These are official 2026 FDD terms for the current U.S. offer; they are not the complete operating-cost structure.
- Royalty Fee
- $475 per month for each Oxi Fresh Business, or $5,700 annually before any permitted increase.
- Job Fee
- $15 per completed job, plus $40 per month for each required Co-Op Line and $10 per month for each Oxi Fresh Business for the national toll-free number. Market Expansion Lines can add another $40 monthly each.
- Advertising and Technology Fee
- 3% of Gross Revenues, subject to a $150 monthly minimum that can be increased under the agreement.
- Minimum Purchase Obligation
- At least 3% of Gross Revenues, excluding Dryer Vent Cleaning Gross Revenues, for designated equipment, inventory, materials, forms, supplies, and related items.
- Optional dryer-vent service
- 6% of Dryer Vent Cleaning Gross Revenues, plus separate initial fee and equipment requirements. The earnings model excludes dryer-vent economics because Item 19 says 2025 contained only a minimal amount of those jobs.
Sources:2026 FDD Item 6, pages 8–14, and Item 8, pages 18–20. The official franchise website separately describes the current Oxi Fresh investment and recurring-fee structure and the flat monthly royalty.
Why is the evidence confidence limited?
Confidence is limited because the FDD supplies a strong revenue distribution but no expense, profit, owner-compensation, or territory-normalized earnings statement. The estimate therefore relies on a broad IRS sole-proprietor sector margin rather than same-brand costs. A second major limitation is that Item 19 combines each operator’s multiple territories into one report, while recurring fixed fees apply per Oxi Fresh Business.
- Operator versus territory: The FDD’s 178 Active Operators ran 396 businesses. Sales are per operator, not per territory; the FDD does not disclose territory counts within each performance fifth.
- Benchmark breadth: The IRS margin covers the broader Administrative and Support Services sector, not Oxi Fresh or carpet cleaning alone. Business mix and cost structure may differ materially.
- Closed outlets excluded: Item 19 excludes 45 outlets that closed during 2025, although none had been open less than 12 months. This can make surviving-operator results look stronger than the full economic experience.
- Activity threshold: An Active Operator had to perform at least one job in every month and be open at least two days during at least one week of every month in 2025.
- Unaudited operating data: The franchisor prepared the sales information from scheduling-center data and unaudited information submitted by Active Operators.
- Wide dispersion: Total 2025 sales ranged from $7,704 to $1,518,707.75 across all Active Operators, partly because some operators owned multiple Protected Territories.
The FTC Consumer’s Guide to Buying a Franchise explains that Item 19 claims must have a reasonable basis and disclose important assumptions and limitations. The FTC also advises buyers to request written substantiation for earnings claims and compare the disclosure with the operating plan they intend to use. The franchisor’s official FDD review step confirms that prospects receive the disclosure document during its ownership process.
What should a buyer verify before relying on this range?
A buyer should verify territory count, full operating expenses, owner hours, staffing, and closed-unit results before treating any scenario as applicable. The following questions target the gaps between official gross sales and actual pre-tax owner cash benefit.
- Request Item 19 written substantiation and ask for the distribution of territories per Active Operator within each fifth.
- Ask current franchisees for 2025 profit-and-loss statements separating cleaning-agent costs, vehicle expense, insurance, payment processing, local marketing, maintenance, and accounting.
- Compare owner-operated and manager-run franchisees with similar territory counts, market density, job mix, and years in operation.
- Ask former franchisees and owners of the 45 excluded closed outlets about sales, staffing, expenses, debt service, and reasons for closure.
- Confirm whether the manager also performs cleaning jobs, how many technicians are required at each sales level, and the employer payroll burden above wages.
- Model financing principal and interest separately; do not treat operating benefit as personal after-tax take-home pay.
What is the strongest defensible annual earnings range?
The strongest defensible range is approximately $14,000 to $36,500 in annual estimated owner-operator benefit, with a base case near $23,600. It is scenario-based—not official—and applies the 2023 IRS sole-proprietor net-income margin, with a ±3 percentage-point sensitivity, to the fourth-, middle-, and second-fifth 2025 Active Operator sales medians. The most important earnings driver is owner involvement: deducting one full-time Operations Manager wage makes all three modeled residuals negative before payroll burden. The largest unresolved uncertainty is the absence of same-brand territory-level expense and profit data, especially for closed outlets and multi-territory portfolios. A buyer should reconcile Item 19 substantiation, Item 20 turnover, the actual recurring fees, and comparable franchisee profit-and-loss statements before using the range in a financing or compensation plan.
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