A reasonable annual planning range for one established Re-Bath Protected Territory is approximately $114,000 to $359,000, with a base illustration near $221,000. These are independent calculations anchored to the 2026 Re-Bath Franchise Disclosure Document’s 2025 median Gross Sales and median Net Income margin. They are not amounts directly reported as owner compensation.
This range is an independent analytical scenario, not an Item 19 financial performance representation by ReBath, LLC. It combines identified 2026 FDD facts with an explicitly modeled revenue spread and margin sensitivity. Actual results can differ materially by territory, sales volume, job mix, material cost, installation labor, sales commissions, marketing efficiency, occupancy, financing, owner involvement, and execution.
Legal franchisor: ReBath, LLC. Document: 2026 U.S. Franchise Disclosure Document, issued July 6, 2026. Item 19 status: official Gross Sales, Gross Margin, and Net Income percentages for 122 franchised agreements meeting the reporting criteria. Population: U.S. franchised businesses open for the full 2025 calendar year that supplied validated profit-and-loss statements. Owner-role benchmark: May 2025 U.S. Bureau of Labor Statistics wage data. Date checked: July 21, 2026.
What does the 2026 Re-Bath FDD actually report?
The official disclosure reports revenue and percentage margins, not a direct annual owner paycheck. For calendar 2025, Item 19 covers 122 franchised agreements that were open for the full year and provided validated profit-and-loss statements. The FDD reports median Gross Sales of $2,627,361, average Gross Sales of $3,581,213, median Net Income of 8.4% of sales, and average Net Income of 10.6% of sales.
The FDD defines Gross Sales as executed customer contracts, service revenue, and other business revenue, excluding specified refunds and remitted sales taxes. It defines Net Income as total sales minus all expenses, including cost of goods sold, taxes, interest, fees owed to the franchisor, and other general expenses, divided by sales. This makes Net Income the strongest earnings-related measure in the document, but it is still a margin rather than a disclosed dollar amount per owner. See 2026 FDD, Item 19, pp. 57–61.
| 2025 cohort | Agreements | Median Gross Sales | Average Net Income | Median Net Income |
|---|---|---|---|---|
| Total open 1+ years | 122 | $2,627,361 | 10.6% | 8.4% |
| Opened in 2024 | 11 | $1,312,886 | 16.6% | 32.0% |
| Opened in 2023 | 5 | $1,706,178 | 25.7% | 15.4% |
| Opened before 2023 | 106 | $2,801,449 | 10.1% | 8.4% |
Only 40 of the 122 reporting agreements, or 32.8%, were at or above the average territory population, and only 44, or 36.1%, were at or above average Gross Sales. The average is therefore pulled upward by larger results. The median is the more conservative central anchor for planning.
Item 19 excludes two businesses opened during 2025, 18 full-year businesses that did not submit validated statements, two businesses that closed during 2025, and three businesses reacquired by the franchisor. It also includes 48 businesses operating under legacy franchise agreements with different royalty or advertising terms. The FDD states that the operating data were not audited. Item 20 shows franchised outlets declined from 145 at the start of 2025 to 142 at year-end, while three company-owned outlets were added. See 2026 FDD, Items 19 and 20, pp. 57–68.
How was the annual earnings range calculated?
The $114,000–$359,000 range is a transparent FDD-derived scenario, not a franchisor-reported owner-income range. The base calculation multiplies the FDD’s 2025 median Gross Sales by its 2025 median Net Income margin. Conservative and Upside cases apply an explicit 80%/100%/120% revenue spread and a three-percentage-point margin sensitivity around the disclosed median.
- Conservative: 80% of median sales and a 5.4% margin, producing about $114,000.
- Base: 100% of median sales and the disclosed 8.4% median margin, producing about $221,000.
- Upside: 120% of median sales and an 11.4% margin, producing about $359,000.
Independent Conservative, Base, and Upside scenarios; values rounded to the nearest $1,000.
Interpretation: Revenue and margin compound each other. A 20% sales swing plus a three-point margin swing creates a much wider earnings range than either variable alone.
Source: 2026 Re-Bath FDD, Item 19, pp. 57–61; scenario spread is an editorial assumption. Calculations use full precision and are rounded only for publication.
| Scenario | Revenue anchor | Net Income margin | Annual net-income proxy |
|---|---|---|---|
| Conservative | $2,101,889 | 5.4% | $114,000 |
| Base | $2,627,361 | 8.4% | $221,000 |
| Upside | $3,152,833 | 11.4% | $359,000 |
The FDD’s $2.63 million median Gross Sales figure is the value of customer contracts and service revenue, not owner income. The earnings estimate depends on the Net Income percentage remaining after operating expenses. A high-volume territory can still produce weak owner economics if material, labor, sales commission, marketing, warranty, occupancy, or overhead costs are poorly controlled.
How does owner involvement change the result?
Active operation can increase total owner benefit only when the owner genuinely replaces a paid management role. Item 15 permits both active ownership and a more manager-run structure. An active business entity must designate an Operating Owner with at least 20% ownership; a non-operating owner must employ a full-time Manager responsible for daily operations. In either case, the Operating Owner or Manager must devote full time during normal business hours to management, operation, and development. See 2026 FDD, Item 15, p. 52.
The official Re-Bath franchise FAQ describes owners as operating in a CEO role rather than performing installations. That positioning does not remove the FDD requirement for full-time daily management by either the Operating Owner or an employed Manager.
Base business residual plus the market value of a replaced General and Operations Manager role.
Interpretation: The $356,000 figure is not pure business profit. Approximately $135,000 represents the market value of full-time management labor performed by the owner, using the May 2025 national mean wage for General and Operations Managers.
Sources: 2026 Re-Bath FDD, Item 15, p. 52; U.S. Bureau of Labor Statistics May 2025 national wage table. The wage excludes employer payroll taxes and benefits and may differ substantially by market.
Do not automatically add a manager salary to Item 19 Net Income. The FDD does not disclose whether each reporting franchisee expensed owner compensation, employed a separate manager, or classified owner pay consistently. The labor-value bridge applies only when the owner fully replaces a manager cost already embedded in the modeled P&L.
- Manager-run residual: business Net Income after normal operating expenses, including the cost of the employed Manager when that cost is present in the P&L.
- Owner-operator benefit: residual business income plus the supported market value of work the owner personally performs. It combines capital return and labor compensation.
- Owner draw or distribution: a cash transfer to the owner, not an expense measure and not automatically equal to accounting Net Income.
- After-tax take-home pay: not estimated here because federal, state, entity-level, and personal tax outcomes depend on the owner’s circumstances.
Which costs have the largest effect on owner earnings?
Gross margin, marketing productivity, and management labor are the largest earnings drivers visible in the FDD evidence. The official 2025 median Gross Margin was 52.8%, while median Net Income was only 8.4%, showing that operating overhead absorbs most of the gross profit after materials, freight, installation labor, and sales commissions.
- Royalty and advertising: new franchisees generally pay a 5% or 6% royalty plus a 2% Advertising Contribution, each subject to minimum payments. Legacy agreements in Item 19 may have lower or differently calculated obligations.
- Local marketing: the FDD reports average 2025 Marketing Spend of $356,326 and median Marketing Spend of $264,780 for the reporting population. Item 11 also imposes minimum local advertising requirements.
- Managed Services and technology: digital and broadcast marketing service fees depend on media spend; Technology Fees depend on territory population and user roles.
- Required products and installation economics: the franchisor or affiliates supply major product categories, and Gross Margin is measured after material, freight, installation labor, and sales commissions.
- Interest and debt principal: Item 19 Net Income expressly includes interest as an expense. Loan principal is not a P&L expense and would reduce cash available after the modeled earnings figure.
- Startup investment: the Item 7 range of $275,875 to $606,925 is an initial capital requirement, not an annual expense and is not subtracted from one year of sales in this model.
See 2026 FDD, Items 6 and 7, pp. 12–24. The FDD states that ReBath, LLC does not offer or guarantee financing, so no standardized debt-service case is presented.
Why is the reasonable earnings range still wide?
The largest unresolved uncertainty is how individual franchisee P&Ls classify owner compensation, manager payroll, taxes, depreciation, and other non-cash or owner-specific items. Item 19 defines Net Income broadly but does not provide a standardized dollar bridge from sales to owner distributions or pre-tax owner benefit.
- Statistical mismatch: multiplying a median sales figure by a median margin creates a planning illustration; it does not prove that the median-sales outlet also earned the median margin.
- Cohort size: the 2024-opening group has 11 agreements and the 2023-opening group has only five, so their margins can move sharply with a few unusual results.
- Legacy economics: 48 of the 122 reporting businesses use legacy franchise agreements with different fee structures.
- Excluded businesses: closures, reacquisitions, partial-year openings, and non-reporting full-year businesses are excluded from the main table.
- Territory scale: the reporting agreements cover territory populations from 312,296 to 8,322,309, making a single system-wide average less representative of a specific market.
- Net Income definition: interest and taxes are included, but personal income taxes, financing principal, owner draws, and retained earnings are not separately disclosed.
The current same-brand FDD supplies broad revenue and Net Income margin evidence, but it does not directly report owner compensation or dollar Net Income per business. That supports a moderate-confidence range, not a high-confidence owner-pay figure.
What should a prospective owner verify before relying on the range?
A buyer should reconcile the scenario against written Item 19 substantiation and franchisee-level P&Ls for a comparable territory and owner role. The Federal Trade Commission advises prospects to examine the source, assumptions, limitations, geography, and typicality of earnings claims and to request written substantiation.
- Ask for Item 19 written substantiation and confirm whether the sales and margin values come from the same outlets and accounting definitions.
- Ask active franchisees whether Net Income is reported before or after owner salary, guaranteed payments, distributions, depreciation, and manager payroll.
- Compare your target territory’s population, lead cost, conversion rate, average job value, labor market, showroom occupancy, and local advertising requirement with the reporting cohort.
- Separate Operating Owner labor compensation from residual business profit when comparing active and manager-run structures.
- Model interest and loan principal separately using your actual financing proposal; do not treat the Item 7 investment range as an annual operating expense.
- Review Item 20 contacts for current and former franchisees, including owners near your proposed market and owners who opened in 2023 or 2024.
What is the strongest defensible takeaway?
The strongest defensible annual range is approximately $114,000 to $359,000 per established Re-Bath Protected Territory, with a base illustration near $221,000. It is a scenario-based, FDD-derived net-income proxy—not an official owner-compensation disclosure and not after-tax take-home pay.
The most important earnings driver is the interaction between Gross Sales and the Net Income margin after materials, installation labor, sales commissions, marketing, management, occupancy, franchise fees, and general overhead. The largest unresolved uncertainty is whether owner pay and manager compensation were classified consistently across the 122 reporting P&Ls.
A prospective buyer should verify the 2026 Item 19 substantiation, compare a territory-specific operating model with similar franchisees, and obtain clear answers about owner salary, manager payroll, interest, depreciation, taxes, and distributions before treating any scenario as personally applicable.
All dollar estimates are annual U.S. dollars. No personal income-tax estimate is provided. No result is guaranteed, and actual performance may differ materially.