How Much Does a Patrice & Associates Franchise Owner Make?

A defensible analytical range is approximately negative $5,600 or worse to positive $21,700 per outlet per year, with a base scenario near $3,700. These are estimated pre-tax owner-operator benefits before personal income taxes and financing principal payments. They are not franchisor-reported profits, and the three revenue anchors are not probabilities.

The model uses the strongest compatible same-brand evidence available. Conservative revenue is the official $0 median for all 194 year-end outlets. Base revenue is the official $17,526.70 all-outlet average. Upside revenue is the official $89,743.57 average for the top one-sixth of outlets. The FDD does not provide an outlet expense statement, so the base and upside estimates use a broad IRS sole-proprietorship margin proxy rather than silently inventing local costs.

The IRS margin is treated as an all-in net-income proxy, so the model does not subtract the 24% FDD percentage-based charges a second time. That avoids mechanical double counting, but it creates a material comparability limitation because the IRS sector is not franchise-specific and does not identify how many returns included franchise fees.

Item 19 measures collected Gross Sales for franchised P&A Agencies during calendar 2025, not owner profit. The all-outlet median was $0, the average was $17,526.70, and only 40 of 194 outlets—20.6%—achieved or surpassed that average.

The population definition matters. All 194 outlets open on December 31, 2025 were “Qualifying Gross Revenue Outlets,” including 112 that made no placement during the year. The FDD separately states that 82 outlets made at least one placement. It also reports 15 outlet closures during the Measuring Period; those closed outlets are outside the 194-outlet year-end sales table.

The top-sixth subset consisted of 33 outlets with sales from $24,416 to $663,639. Its median was $56,240 and its average was $89,743.57. That average is useful as an upside revenue anchor, but it is not a forecast, a probability, or evidence that a new owner will enter the top sixth.

• Gross Sales definition: sales connected to the P&A Agency before the royalty, billing, Brand Fund, and database deductions. Placement fallouts and expired credits affect the related Gross Placement Fee data.
• Ownership population: franchised outlets only. Item 19 says there were no company-owned P&A Agencies in operation during 2025.
• Data quality: the franchisor states that it performs billing and collection and therefore has the collected-fee data, but the Item 19 figures are unaudited.
• Expense gap: Item 19 expressly omits payroll, marketing, inventory replenishment, utilities, initial fees, ongoing fees, and other outlet expenses.

The percentage-based franchise charges remove 24 cents from each dollar of Gross Sales before local operating costs. Item 6 lists a 10% Royalty Fee, 5% Billing Services Fee, 2% Brand Fund Fee, and 7% P&A Database Fee. The franchisor collects client payments and deducts these amounts before remitting the balance.

The next table is a derived cash bridge, not an earnings statement. It subtracts the 24% charges and the same $5,620 minimum fixed-cost bundle used in the conservative scenario. It does not subtract insurance, phone, local marketing, recruiter pay, manager pay, payroll taxes, benefits, professional fees, travel, conference costs, debt service, or other local expenses.

Active owner operation is materially easier to support than a manager-run structure at the disclosed sales levels. Item 15 requires the Managing Owner to devote full-time effort unless a trained Manager is hired, and the P&A Agency must always have direct, full-time, day-to-day supervision by one of those two people.

The largest unresolved uncertainty is the absence of same-brand outlet expense data. Item 19 provides a detailed sales distribution, but not recruiter compensation, manager compensation, local marketing, insurance, software beyond specified system charges, professional fees, interest, depreciation, or owner compensation.

The external margin is also deliberately treated as a weak proxy. The IRS figure is based on Schedule C sole proprietorships in the broad Administrative and Support Services sector, not solely NAICS 561311 Employment Placement Agencies or NAICS 561312 Executive Search Services. Sole-proprietor net income may also compensate the proprietor’s work, so it is closer to an owner-operator benefit than passive business profit.

Debt service is separate. Item 10 states that Patrice Franchising, LLC does not offer or guarantee financing, so this article does not assume a loan amount, rate, or term. The scenarios exclude financing principal payments and do not estimate personal income taxes. Business interest and depreciation may be embedded in the broad IRS benchmark, but their exact treatment for a P&A Agency is unknown.

• Obtain Item 19 substantiation: reconcile the 194-outlet year-end population, 82 placement outlets, 112 no-placement outlets, and 15 closures during 2025.
• Interview active owners across cohorts: ask for 2025 Gross Sales, recruiter payroll, owner hours, manager payroll, local marketing, insurance, software, professional fees, bad debt, and placement fallouts.
• Separate owner labor from business profit: identify whether the Managing Owner works full-time, hires a trained Manager, or uses Recruiters, and assign each role a realistic compensation cost.
• Test the 24% fee load: confirm how client-originated and cross-franchise placements are credited and how the royalty, billing, Brand Fund, and database deductions appear on weekly remittances.
• Review Item 20 departures: contact current and former franchisees and ask why outlets terminated, did not renew, transferred, or ceased operations.
• Build a local cash model: use territory-specific sales assumptions, insurance, marketing, phone, subscriptions, payroll burden, and financing rather than relying on a sector average.

The strongest defensible annual range is approximately negative $5,600 or worse to positive $21,700 in estimated owner-operator benefit for one P&A Agency, with a base scenario near $3,700. It is scenario-based, not official owner earnings. The dominant driver is placement-generated Gross Sales: the official all-outlet median was $0, while the highest one-sixth averaged $89,743.57.

The largest unresolved issue is the missing same-brand expense and owner-compensation data. A buyer should verify Item 19’s outlet-level substantiation, reconstruct a full expense statement from current and former franchisee interviews, and distinguish compensation for the Managing Owner’s full-time labor from residual manager-run business profit. The FTC’s guidance on scrutinizing financial performance representations is relevant because gross sales can look substantial while costs materially reduce—or eliminate—owner benefit.

FDD citations: Patrice Franchising, LLC, 2026 Franchise Disclosure Document, issued April 30, 2026: Item 6, pages 6–10; Item 11, pages 15–23; Item 15, page 27; Item 19, pages 30–33; Item 20, pages 33–38.