That is the modeled range for owner-operator or shared-management benefit from an initial 5-to-20-vehicle PacLease operation. The base scenario is about $32,000. A dedicated manager-run version models much lower, from roughly a $110,000 loss to $15,000 of pre-tax owner earnings, because a full market manager wage is charged as an operating expense.
This range is an independent analytical scenario, not an Item 19 financial performance representation by PACCAR Leasing Company. It combines identified 2026 FDD facts with separately identified PACCAR Financial Corp., IRS and BLS benchmark assumptions. Actual results can differ materially by location, fleet size and age, vehicle utilization, lease pricing, maintenance burden, labor, shared dealership overhead, occupancy, financing, residual values, owner involvement and execution.
What is the data basis?
The legal franchisor is PACCAR Leasing Company, an unincorporated division of PACCAR Financial Corp. The Franchise Disclosure Document was issued February 20, 2026. Item 19 makes no sales, profit or owner-income representation, so the analysis uses structural facts rather than treating a revenue number as official earnings.
Does the 2026 PACCAR Leasing FDD disclose owner earnings?
No. This is an official FDD finding for the current U.S. offer: Item 19 says the franchisor does not make representations about future franchisee performance or past company-owned or franchised outlet performance.
That means there is no official PacLease average sales figure, median profit, EBITDA, net income, owner compensation or percentage of outlets achieving a threshold. Item 20 identifies the system population, but outlet counts do not establish unit economics: the FDD reports 455 franchised U.S. outlets and two company-owned outlets at December 31, 2025.
The result relies materially on parent-company operating-lease proxies, broad government industry data and explicit fleet assumptions because the current Item 19 provides no revenue or earnings metric for franchisees.
What does each official or benchmark source actually measure?
Each source measures a different entity and metric. The 2026 PACCAR Leasing Franchise Disclosure Document controls the franchise facts, while the PACCAR Financial Corp. Form 10-K, IRS Statistics of Income and BLS Occupational Employment and Wage Statistics are proxies with narrower analytical roles.
| Evidence entity | Exact metric or disclosure | Population and period | How it is used |
|---|---|---|---|
| 2026 PACCAR Leasing FDD, Item 19 | No Financial Performance Representation; no Gross Sales, Net Sales, Operating Profit, EBITDA, Net Income, Cash Flow or Owner Compensation | Current U.S. PacLease franchise offer | Establishes that no official owner-earnings figure exists |
| PACCAR Financial Corp. 2025 Form 10-K | Operating lease and rental revenue, average equipment on operating leases and Operating Lease Margin | Corporate finance and lease portfolio, 2024-2025 | Revenue-yield and margin proxy; not franchised-outlet economics |
| IRS Statistics of Income, Table 5.1 | Total Receipts, Total Deductions and Net Income (Less Deficit) | All active U.S. corporations in Automotive Equipment Rental and Leasing, tax year 2022 | Conservative all-in industry margin anchor |
| BLS OEWS, NAICS 532100 | General and Operations Managers mean annual wage | U.S. Automotive Equipment Rental and Leasing employers, May 2023 | Dedicated-manager labor-value proxy |
Even the scenario revenue figures below are not Owner Compensation, Net Income or Cash Flow. Vehicle depreciation, maintenance, labor, insurance, taxes, licensing, occupancy, financing and recurring franchise fees can consume most or all Gross Sales or Net Sales.
Which numbers matter most for the earnings decision?
The most useful figures are the scenario result, the owner-labor adjustment, the recurring revenue charge and the size of the official outlet population. Only the FDD fees and outlet count are official same-brand facts.
How was the annual owner-earnings range estimated?
The estimate is scenario-based. It starts with the FDD's recommended initial fleet of 5 to 20 rental vehicles, applies an official parent-company revenue-to-lease-asset proxy, applies separately disclosed margin assumptions, and then subtracts the recurring location, revenue and maximum TRALA fees.
Modeled operating contribution = revenue × scenario margin - 1% revenue fee - $6,600 annual location fee - $2,000 TRALA allowance.
- Fleet structure: The 2026 FDD recommends ordering 5 to 20 rental vehicles in the first three months; Item 7 estimates $100,000 to $150,000 per vehicle and gives a $130,000 financing example.
- Revenue proxy: PACCAR Financial Corp. reported $139.8 million of 2025 operating lease and rental revenue on $487.6 million of average equipment on operating leases, a 28.67% ratio. Applying a carrying-value ratio to original vehicle cost is approximate.
- Margin assumptions: Conservative uses the IRS 2022 all-corporation net margin for automotive equipment rental and leasing (-1.83%); base uses the average of PACCAR Financial's 2024 and 2025 operating lease margins (10.18%); upside uses the 2025 parent-company operating lease margin (14.88%).
- Fee treatment: The model subtracts the 1% FDD revenue fee, $550 monthly location fee and a $2,000 annual TRALA allowance. Variable per-vehicle insurance, permitting and national-account charges are not separately estimated because utilization and program participation are unknown.
- Important exclusion: The PACCAR Financial margin is a parent-company proxy, not a franchised-outlet margin. It may not capture all franchisee labor, occupancy, shared dealership overhead or borrowing expense. Capital expenditures, financing principal and personal income taxes are excluded.
| Scenario | Modeled revenue | Margin input | Owner-operator / shared-management benefit |
|---|---|---|---|
| Conservative: 5 vehicles at $100,000 | $143,000 | -1.83% | -$13,000 |
| Base: 12 vehicles at $130,000 | $447,000 | 10.18% | $32,000 |
| Upside: 20 vehicles at $150,000 | $860,000 | 14.88% | $111,000 |
How widely do the three operating-contribution scenarios differ?
Annual owner-operator or shared-management benefit before personal taxes and financing principal.
Interpretation: Fleet scale and the selected margin proxy move the answer from an operating loss to a six-figure contribution. The chart is not a probability forecast, and the midpoint is not presented as the most likely outcome.
Sources: 2026 PACCAR Leasing FDD, Items 6 and 7, pp. 16-20; PACCAR Financial Corp. 2025 Form 10-K; IRS Corporation Complete Report, 2022 Table 5.1. Figures rounded after calculation.
How does owner involvement change the result?
Owner involvement changes the modeled result by approximately the cost of a dedicated general and operations manager. This is an estimated labor-value adjustment, not an official PacLease profit figure.
Item 15 requires the agreement signer to participate actively in management, but that person can be an owner or an owner-designated manager. The FDD also says 92.3% of U.S. franchisees are owned by or affiliated with Kenworth or Peterbilt dealerships, so some groups may share management and facilities instead of hiring a standalone manager.
What is the modeled gap between a dedicated manager and an owner-operator?
Each line subtracts the BLS $95,760 manager wage proxy from operating contribution to show manager-run residual profit.
Interpretation: In the conservative and base scenarios, a dedicated manager consumes more than the modeled operating contribution. An active owner avoids that cash expense, but the resulting benefit partly or entirely compensates the owner for working in the business.
Manager proxy: BLS May 2023 Automotive Equipment Rental and Leasing wage estimates, General and Operations Managers, mean annual wage $95,760.
- Manager-run pre-tax owner earnings
- Residual business contribution after a dedicated manager wage, but before personal income taxes and financing principal. It is not passive or guaranteed income.
- Estimated owner-operator benefit
- Cash contribution available when the owner performs management work. It combines residual business economics with compensation for the owner's labor.
- Modeled revenue
- Lease-and-rental revenue proxy derived from fleet assets. It is not Item 19 sales and is not owner earnings.
- After-tax take-home pay
- Not estimated. Federal, state and local taxes depend on entity structure, deductions, jurisdiction and the owner's circumstances.
Which costs can move actual owner earnings most?
Vehicle economics are the dominant uncertainty. This is an official structural finding rather than an official profit figure: Item 8 says trucks can represent 50% to 80% of operating cost after the first six months, while Item 7 describes substantial vehicle financing obligations.
How much do recurring franchise fees reduce the model?
The official recurring burden includes a $550 monthly location fee per Franchise Ownership Group, the tiered revenue fee and a $0-to-$2,000 annual TRALA fee, plus transaction- or fleet-dependent insurance, licensing and national-account charges.
| Recurring obligation | Official FDD amount | Scenario treatment |
|---|---|---|
| Location Fee | $550 monthly per Franchise Ownership Group | $6,600 annually |
| Revenue Fee | 1% to $6 million; 0.5% from $6 million to $12 million; 0% above $12 million | 1% because all modeled revenue is below $6 million |
| TRALA Fee | $0-$2,000 annually | $2,000 conservative allowance |
| Insurance and permitting | Per-vehicle monthly charges vary by equipment class and service | Not separately quantified; actual participation and fleet mix are unknown |
What can financing do to cash available to the owner?
Financing can reduce cash materially, but the FDD does not provide a unit-level interest schedule that can be cleanly combined with the operating margin proxies. Item 7 gives an example of $1,635 to $1,825 per month for one $130,000 vehicle, depending on residual-value assumptions.
For the 12-vehicle base fleet, that example equals approximately $235,000 to $263,000 of total annual vehicle payments. Those payments include principal and financing economics that overlap with depreciation-based margin measures, so subtracting the full payment again would double count costs. Buyers need the actual amortization schedule, interest component, residual guarantees and fleet-level cash-flow model.
The model excludes financing principal. Interest is included in the conservative IRS all-in margin but is not separately identifiable in the parent-company operating lease margins used for the base and upside scenarios. This inconsistency is a major reason for the LIMITED confidence rating.
Why might one PACCAR Leasing owner's result differ sharply from another's?
The FDD describes a network whose outlets are usually embedded in existing truck-dealership or leasing operations, not a standardized standalone storefront. Shared facilities, technicians, parts inventory, sales staff and management can therefore change incremental profit substantially.
The 2026 FDD reports that 92.3% of U.S. PacLease franchisees are owned by or affiliated with Kenworth or Peterbilt dealerships. Item 7 says existing facilities, equipment and parts inventory may be adequate for the initial operation, while dealership-affiliated franchisees must add a qualified lease salesperson early in the launch period. Those structural differences make a single per-outlet average especially unreliable.
PACCAR Financial Corp. is the franchisor's corporate parent, but its operating lease portfolio is not a reporting sample of franchised outlets. The IRS category is broader still: NAICS 532120 includes truck, utility-trailer and recreational-vehicle rental and leasing. Neither proxy proves PacLease franchise profitability.
What should a buyer verify before relying on any earnings estimate?
A buyer should replace the scenario assumptions with written, outlet-specific records. This is the most important next step because the 2026 Item 19 supplies no system sales or profit benchmark.
- Ask for the current Item 19 and written substantiation for any financial performance statement made outside it. The FTC's franchise buyer guide explains why earnings claims and supporting records matter.
- Interview current and former franchisees listed in Item 20 about fleet count, utilization, lease rates, maintenance recovery, salesperson cost, bad debt, residual losses and shared-dealership allocations.
- Separate mature vehicles, newly placed vehicles, rental units, full-service leases and contract-maintenance customers. Do not average incompatible revenue streams.
- Obtain the proposed fleet's vehicle-by-vehicle debt schedule, including rate, term, residual guarantee, principal, interest and required cash reserves.
- Determine whether management, technicians, service bays, parts, insurance and administration are truly shared with an existing dealership or must be hired and funded separately.
- Reconcile owner salary, draws, distributions, retained earnings and business profit. None of those terms is interchangeable with Gross Sales or the scenario's owner-operator benefit.
What is the strongest defensible earnings takeaway?
The strongest defensible estimate is about a $15,000 operating loss to $110,000 of annual owner-operator or shared-management benefit, with a base scenario near $32,000. It is scenario-based, not official. After charging a full manager wage, the dedicated manager-run range falls to approximately a $110,000 loss to $15,000 of pre-tax owner earnings.
The most important earnings driver is the combination of fleet utilization and vehicle-level margin. The largest unresolved uncertainty is the lack of franchised-outlet revenue, expense and financing data in Item 19. Before making a decision, a buyer should verify written substantiation, actual outlet records where available, fleet-level debt schedules and comparable franchisee results through Item 20 interviews.
FDD citations: 2026 PACCAR Leasing Franchise Disclosure Document, issued February 20, 2026, Items 6, 7, 8, 15, 19 and 20, printed pp. 16-42. No public official copy of the matching FDD was identified, so the FDD citation is intentionally unlinked.