Annual owner earnings answer
This is an estimated pre-tax owner-operator benefit for a mature Sculpture Hospitality territory with approximately 150 establishments. It is not an official earnings figure. The range combines the 2026 franchise fee structure with a 2023 IRS sole-proprietorship benchmark for management, scientific, and technical consulting services.
Data basis and scope
Legal franchisor: SHH Group, LLC. Current document: 2026 Sculpture Hospitality Franchise Disclosure Document, issued May 19, 2026. Item 19 status: no financial performance representation. Formats: territories of approximately 150, 250, or 500 establishments, with Full-Service, Shared-Service, and Self-Service client arrangements. The scenario model is limited to the mature-year fee structure for a territory of approximately 150 establishments serving Full-Service or Shared-Service clients; it does not blend the Self-Service royalty structure or larger-territory minimums.
External benchmark: IRS Statistics of Income, tax year 2023, NAICS 541600, Management, Scientific, and Technical Consulting Services. The closer Census classification is NAICS 541614, Process, Physical Distribution, and Logistics Consulting Services, which expressly includes inventory management, but the IRS state-and-industry table is available at the broader 541600 level. Date checked: July 20, 2026. A matching public 2026 FDD was not located on the official franchise-controlled domain, so FDD references below are plain-text citations by Item and page.
Average receipts per Schedule C
IRS 2023 aggregate gross receipts divided by 855,618 Schedule C filings in NAICS 541600; this is an average, not a median.
Aggregate net-profit margin
IRS net profit or loss divided by gross receipts for the same broad consulting population.
Base recurring fee and local-marketing burden
Year-3 minimum royalty, minimum marketing-fund contribution, required fixed fees, and 3% local marketing at base revenue.
Year-3 minimum client evaluations
The 2026 FDD requires 39 monthly evaluations for the 150-establishment territory in year 3, annualized for context.
Franchised outlets at 2025 year-end
Item 20 reports a decline from 179 at the start of 2025, with two openings, three non-renewals, and six outlets ceasing operations.
Item 19 evidence
What does Sculpture Hospitality’s 2026 Item 19 actually disclose?
The official answer is that Item 19 discloses no sales, gross profit, operating profit, EBITDA, net income, cash flow, owner compensation, or owner earnings. The 2026 FDD says the franchisor does not make representations about future financial performance or the past financial performance of company-owned or franchised outlets. That places this article in Mode D: structural FDD-anchored estimate, with a Limited confidence rating. Source: 2026 Sculpture Hospitality Franchise Disclosure Document, Item 19, p. 42.
The official Sculpture Hospitality franchise page states that a small number of regular clients can gross $100,000 a year. “Gross” describes revenue, not owner earnings. Because that webpage gives no reporting period, sample, population coverage, expense data, or percentage of franchisees achieving the amount—and because the current FDD contains no Item 19 financial performance representation—the $100,000 statement is not used as the revenue anchor for this estimate.
A $100,000 gross-sales claim cannot be converted into take-home pay without evidence for recurring fees, operating expenses, owner labor, debt service, and taxes. The FTC’s guide to buying a franchise advises buyers to evaluate Item 19 assumptions and request written substantiation for financial performance claims.
Scenario model
How was the $22,700–$38,200 range calculated?
The range applies the required three-scenario framework to the strongest compatible public benchmark available. IRS tax-year 2023 data for NAICS 541600 report 855,618 Schedule C filings, $47.881 billion of gross receipts, and $25.766 billion of net profit or loss. Dividing the aggregates gives average receipts of $55,961 per filing and an aggregate net-profit margin of 53.8%. These figures are external benchmarks, not Sculpture Hospitality results.
The U.S. Census Bureau’s NAICS 541614 definition includes inventory management and inventory planning and control consulting, making consulting a closer structural fit than restaurant, retail, or lodging margins. The available IRS table is broader, however, and includes many consulting models, part-time proprietors, businesses with losses, and firms with no franchise fees.
| Scenario | Revenue anchor | Net-margin assumption | Estimated owner-operator benefit |
|---|---|---|---|
|
Conservative 80% of benchmark receipts; benchmark margin minus 3 percentage points |
$44,800 | 50.8% | $22,700 |
|
Base 100% of benchmark receipts; benchmark margin |
$56,000 | 53.8% | $30,100 |
|
Upside 120% of benchmark receipts; benchmark margin plus 3 percentage points |
$67,200 | 56.8% | $38,200 |
Pre-tax benefit before financing principal; rounded to the nearest $100.
Interpretation: The chart is a sensitivity range, not a probability forecast. The base case is not labeled “most likely” because the FDD provides no same-brand sales distribution or profit history.
Source: Derived from IRS Statistics of Income tax-year 2023 NAICS 541600 aggregates and stated editorial sensitivity assumptions. IRS data: Nonfarm sole proprietorship statistics and 2023 state-and-industry workbook.
Recurring obligations
How much of revenue may be absorbed by recurring franchise and marketing requirements?
At the base revenue anchor, the modeled 150-establishment territory carries about $13,007 of annual recurring franchise and local-marketing burden. This derived amount uses the mature year-3 minimums for Full-Service or Shared-Service clients: $7,020 minimum royalty, $2,808 minimum Marketing Development Fund contribution, $840 centralized marketing, $660 technology infrastructure, and 3% of Gross Sales for local marketing. Source: 2026 Sculpture Hospitality Franchise Disclosure Document, Item 6, pp. 6–12.
The FDD requires the greater of the percentage fee or the stated minimum. At all three modeled revenue levels, the 150-territory annual royalty minimum of $7,020 exceeds 8% of evaluation revenue, and the annual Marketing Development Fund minimum of $2,808 exceeds 2% of evaluation revenue. The local-marketing requirement remains 3% of Gross Sales. For this fee test, the model treats all scenario revenue as Full-Service or Shared-Service evaluation revenue and as Gross Sales; ancillary revenue or a different service mix would change the calculation. The Self-Service client fee—greater of $38 or 20% of the client’s monthly Self-Service fee, including the fund contribution—is structurally different and is not mixed into this model.
| Territory size | Year-3 royalty minimum | Year-3 fund minimum | Annual floor before 3% local marketing |
|---|---|---|---|
| Approximately 150 establishments | $7,020 | $2,808 | $11,328 |
| Approximately 250 establishments | $10,980 | $4,392 | $16,872 |
| Approximately 500 establishments | $11,880 | $4,752 | $18,132 |
The FDD burden is reserved inside—not subtracted on top of—the IRS all-in expense envelope.
Interpretation: Minimum-based franchise obligations consume about 28.3% of conservative revenue, 23.2% of base revenue, and 19.9% of upside revenue. Higher sales improve the ratio because several fees are fixed or minimum-based at these revenue levels.
Source: 2026 Sculpture Hospitality Franchise Disclosure Document, Item 6, pp.6–12, combined with the IRS-derived scenario expense envelope. The “other operating expense” segment is a residual analytical allowance, not a franchisor-reported cost category.
The 53.8% IRS margin is an all-in net-profit benchmark. Therefore, the model does not subtract FDD fees again from the calculated owner benefit. Instead, it tests whether those obligations can fit within the total expense allowance implied by each scenario. This allocation is a modeling constraint, not evidence that actual Sculpture Hospitality franchisees have the same expense mix.
Owner role
How does owner involvement change what “earnings” means?
For this franchise, owner involvement is not merely a profit lever; it is a contractual operating requirement. Item 15 states that an individual franchisee must devote full-time and best efforts to management and operation. An entity franchisee must appoint an owner as manager, and a majority owner must serve as manager. Owners may not engage in another business during the agreement term. Source: 2026 Sculpture Hospitality Franchise Disclosure Document, Item 15, pp. 38–39.
That requirement changes the interpretation of the $22,700–$38,200 range. It should be read as owner-operator benefit, not passive business profit. The benchmark is based on Schedule C sole proprietorships, which generally do not deduct a separate salary for the proprietor. The amount therefore combines compensation for selling, performing or supervising client evaluations, administration, travel, and business development with any residual return on ownership.
A manager-run scenario is not presented because replacing the required owner-manager with a non-owner general manager would not match the disclosed operating model. For labor-value context only, the Bureau of Labor Statistics reports a $102,950 median annual wage for general and operations managers in May 2024. That employee wage is not a forecast for this franchise and excludes self-employed workers; it simply shows that the scenario range cannot be interpreted as both a market-rate manager salary and a passive profit distribution.
If the owner performs the required management and a substantial share of client service, part of the economic benefit compensates labor. Hiring employees or contractors to replace that work would reduce residual owner profit unless revenue grew enough to cover the added payroll burden. The 2026 FDD provides no staffing-cost or owner-hours data to quantify that trade-off.
Uncertainty
What could move actual annual earnings outside the scenario range?
The largest uncertainty is the absence of same-brand revenue, expense, and owner-compensation data. The scenario uses a broad consulting benchmark because Item 19 supplies no sales anchor. It cannot show how a mature Sculpture Hospitality territory differs from the average Schedule C consulting business in client concentration, price per evaluation, travel requirements, subcontractor use, insurance, technology, or closure risk.
Which factors matter most?
Recurring client revenue and the labor required to deliver it are the dominant drivers. A territory can have approximately 150 licensed establishments yet convert only a fraction into paying clients. The FDD requires 39 monthly Client Evaluations in year 3 for the modeled territory, but it does not disclose average price, client retention, average service mix, or the percentage of franchisees meeting that minimum.
- Client economics: monthly price, evaluation frequency, retention, cancellations, and the split among Full-Service, Shared-Service, and Self-Service arrangements.
- Labor model: hours worked by the owner, employee or contractor pay, payroll burden, and whether travel time is billable.
- Territory mix: density of bars, restaurants, nightclubs, and other licensed establishments; drive time; and local competition.
- Fee floors: minimum royalty and marketing-fund payments can bind even when sales are below the percentage-fee thresholds.
- Financing: principal payments are excluded from operating earnings. Interest and depreciation are embedded only indirectly in the broad IRS benchmark, not modeled from a buyer’s loan.
- Taxes and capital spending: personal income taxes are excluded, and replacement equipment or other capital expenditures may not align with current-year tax deductions.
Item 20 adds system-level uncertainty. Franchised outlets declined from 184 at the start of 2023 to 172 at the end of 2025. During 2025, Item 20 reports two openings, three non-renewals, and six outlets that ceased operations. These counts do not disclose why each outlet left or what it earned, so they cannot be converted into a failure rate or profit estimate. They do reinforce the need to include former franchisees in diligence. Source: 2026 Sculpture Hospitality Franchise Disclosure Document, Item 20, pp. 42–48.
Buyer verification
What should a buyer verify before relying on any earnings estimate?
A buyer should replace the broad scenario inputs with written same-brand evidence wherever possible. The most useful diligence is a reconciliation of actual client revenue, recurring fees, labor, travel, and owner hours for comparable U.S. territories.
- Request the written substantiation for every sales or earnings statement, including the official website’s $100,000 gross-revenue statement, and compare it with Item 19 under the FTC Franchise Rule.
- Ask current and former franchisees for the last 12 months of client count, revenue by service type, cancellations, evaluation volume, and price per client—without asking them to reveal information they are contractually prohibited from sharing.
- Reconcile each franchisee’s royalty, Marketing Development Fund contribution, centralized marketing, technology fee, and local-marketing spend to Item 6.
- Separate owner labor from business profit: record weekly owner hours, duties performed, employees and contractors used, and the cost to replace the owner’s work.
- Compare territories of the same approximate size and maturity. Do not use a 500-establishment territory or a new territory to validate a mature 150-establishment model.
- Review Item 20 contacts for franchisees who transferred, did not renew, or ceased operations, and ask what changed in sales, workload, expenses, or territory economics.
- Model debt principal, interest, and personal taxes separately from pre-tax operating benefit with an accountant familiar with the buyer’s entity and state.
Decision-useful synthesis
The strongest defensible annual range is approximately $22,700 to $38,200 in estimated pre-tax owner-operator benefit for a mature territory of approximately 150 establishments. It is a scenario-based estimate, not an official Item 19 result. The most important earnings driver is recurring client revenue relative to the owner labor and travel needed to deliver evaluations. The largest unresolved uncertainty is that the 2026 FDD discloses neither same-brand sales nor operating profit, while the public $100,000 gross-revenue statement lacks the population and cost detail needed for an owner-income calculation.
Before making a decision, a buyer should verify Item 19, obtain written substantiation for any financial performance statement, and use current and former franchisee interviews to rebuild comparable territory economics from client-level revenue through recurring fees, labor, travel, debt service, and owner hours.
Related Blogs
- What Are Some Alternatives to the Sculpture Hospitality Franchise?
- How Does the Sculpture Hospitality Franchise Work?
- How to Start a Sculpture Hospitality Franchise in 7 Steps: Checklist
- How Does the Sculpture Hospitality Franchise Work?
- What are the Pros and Cons of Owning a Sculpture Hospitality Franchise?