This is an estimated annual owner-operator benefit before employee wages—not a passive-profit forecast. The range applies the 2025 Franchise Disclosure Document’s official 41.63% average pre-labor “Profits” percentage to a three-scenario revenue proxy centered on $268,821. A staffed or manager-run Sparkle Wash International operation could produce materially less and may lose money.
The dollar range is an independent analytical scenario, not an Item 19 financial performance representation by Sparkle International, Inc. It combines identified FDD facts with a separately identified same-brand company-operated revenue proxy and an explicit 80%–120% modeling spread. Actual results can differ materially by territory, service mix, sales volume, direct labor, insurance, vehicle costs, financing, owner involvement, and execution.
Legal franchisor: Sparkle International, Inc. Document: 2025 Franchise Disclosure Document issued June 27, 2025. Item 19 population: eight voluntary survey respondents among 23 full-time U.S. franchise owners, covering January 1 through December 31, 2024; part-time operations were excluded. Dollar anchor: a wholly owned, independently operated same-brand company unit disclosed in Item 21. Checked: July 16, 2026.
Item 19’s exact term. It is sales less the listed nonlabor expense percentages.
The median percentage shown in parentheses in the Item 19 survey table.
About 34.8% of the invited full-time owner population responded voluntarily.
Used only as the central revenue proxy because Item 19 gives no franchised sales dollars.
The eight survey respondents operated 17 trucks in total, increasing the labor uncertainty.
A same-brand staffed operation reported a loss, illustrating why pre-labor “Profits” are not net income.
What does Sparkle Wash International Item 19 actually measure?
Officially, Item 19 reports expense percentages and a residual “Profits” percentage for the full-time U.S. franchise owners who responded about 2024—not annual sales, owner salary, EBITDA, or after-tax take-home pay. The 2025 FDD says the eight respondents spent an average 58.37% of sales on listed expenses, leaving 41.63% if no employee wages were paid. The corresponding medians were 62.5% and 37.5%.
The result covers 2024 operations and relies solely on voluntary franchisee survey responses. Three of the eight respondents reported expenses below 52% of sales. The franchisor states that direct labor was not included, while most other nonlabor operating expenses were intended to be captured. The respondents averaged about 2.1 trucks, so an owner could not necessarily replace every paid worker personally.
The 41.63% figure is unusually important because it is explicitly before employee wages. It can approximate owner-operator benefit only to the extent that the owner personally supplies labor that would otherwise be paid. For a manager-run, multi-crew, or absentee structure, it materially overstates residual business profit.
| Item 19 measure | Average of sales | Median of sales | Earnings interpretation |
|---|---|---|---|
| Total listed expenses | 58.37% | 62.5% | Includes the disclosed nonlabor categories, subject to survey limitations. |
| “Profits” | 41.63% | 37.5% | Residual before direct employee labor; not automatically owner earnings. |
| Royalties | 6.32% | 5.98% | Surveyed actual burden, not merely the stated contract rate. |
| Advertising | 3.31% | 1.0% | Survey category; individual local acquisition spending can vary. |
| Insurance | 9.20% | 6.12% | A major source of variation between respondents. |
| Direct employee labor | Excluded | Excluded | The largest unresolved cost for a staffed operating model. |
Source: 2025 Sparkle International, Inc. Franchise Disclosure Document, Item 19, pp. 42–43. The FDD states that actual results may differ and provides no assurance that a new franchisee will achieve these results.
How is the annual owner-operator range calculated?
For a U.S. mobile operation, the estimated $89,500–$134,300 range is calculated from 2024 evidence by applying the official 41.63% pre-labor “Profits” percentage to three revenue scenarios. Because Item 19 does not disclose franchised-unit sales dollars, the central revenue anchor is the $268,821 of 2024 “gross operating income” disclosed for Metro Environmental Services, Inc., a wholly owned, independently operated same-brand franchise. That company-operated figure is a proxy, not a franchised-unit average.
- Revenue spread: 80%, 100%, and 120% of the $268,821 company-operated proxy. The spread is an editorial sensitivity assumption, not an FDD-reported distribution.
- Expense treatment: The model retains Item 19’s source treatment, including listed royalty, advertising, vehicle, fuel, insurance, supply, telephone, professional-fee, travel, and other percentages.
- Excluded from the answer: Employee wages, personal income taxes, financing principal, and any costs the survey omitted. Interest, depreciation, and capital expenditure treatment are not separately defined in Item 19.
| Scenario | Revenue proxy | Pre-labor percentage | Estimated owner-operator benefit |
|---|---|---|---|
| Conservative | $215,100 | 41.63% | $89,500 |
| Base | $268,800 | 41.63% | $111,900 |
| Upside | $322,600 | 41.63% | $134,300 |
Annual pre-tax benefit before employee wages; rounded to the nearest $100.
Interpretation: Revenue changes move the estimate directly because the same 41.63% pre-labor percentage is used in all three scenarios. This is a sensitivity analysis, not a probability forecast.
Sources: 2025 Sparkle International, Inc. FDD, Item 19, pp. 42–43; Item 21, Exhibit H, p. 7. Calculations use full-precision inputs and are rounded only for publication.
How does owner involvement change the earnings picture?
For the U.S. mobile operating model, active owner operation can convert some labor cost into owner labor compensation; manager-run operation must pay for that work before the owner receives residual profit. This role distinction is official in the 2025 FDD, while the dollar sensitivity uses 2024 results. Item 15 says personal direct participation is not required but is recommended. When the owner is not full-time, the franchisee must provide a fully trained full-time manager.
As a labor-value benchmark, the U.S. Bureau of Labor Statistics reported a May 2023 mean annual wage of $48,970 for First-Line Supervisors of Housekeeping and Janitorial Workers in Services to Buildings and Dwellings. Subtracting that single wage from the base pre-labor scenario reduces the modeled benefit from $111,900 to about $62,900. That remaining amount is still before technician or crew wages, payroll burden tied to those wages, and any other omitted labor costs.
The three values use different evidence bases and are shown to demonstrate labor sensitivity, not as directly comparable averages.
Interpretation: A single supervisor benchmark removes about 44% of the base pre-labor benefit, yet the model still lacks crew wages. The disclosed company-operated loss confirms that a fully staffed result can fall below zero.
Sources: 2025 Sparkle International, Inc. FDD, Items 15 and 19, pp. 38 and 42–43; Item 21, Exhibit H, p. 7; BLS May 2023 wage profile for First-Line Supervisors of Housekeeping and Janitorial Workers. BLS estimates exclude self-employed workers.
An owner who performs selling, scheduling, supervision, driving, and some field work may retain more cash than an owner who hires those functions. Part of that difference is compensation for labor performed, not passive return on invested capital. The effect becomes more pronounced when the operation uses multiple trucks or crews.
Which recurring costs are already reflected—and which remain uncertain?
For the 2024 full-time U.S. respondent cohort, the official 41.63% residual already reflects the survey’s average royalty, advertising, insurance, fuel, supplies, vehicle payments, and other listed expense ratios, so those costs should not be subtracted again. The largest missing operating cost is direct employee labor.
- Royalty Fee: Item 6 generally requires the greater of 6% of Net Monthly Sales or the applicable minimum royalty. The rate can step down during a calendar year after cumulative gross-sales thresholds are reached, then resets to 6% each January. Item 19’s respondents reported a 6.32% average royalty burden.
- Advertising and technology: Item 6 discloses a national marketing contribution, technology support and development fee, and initial Google advertising requirement. Item 19’s 3.31% average advertising ratio is used as reported rather than rebuilding those charges separately.
- Vehicle and capital treatment: Item 19 includes “Motor Vehicle Payments” but does not separately identify financing principal, interest, depreciation, or capital expenditures. The scenario preserves that ambiguity instead of inventing an adjustment.
- Personal taxes and debt: The article estimates pre-tax operating benefit. Personal income taxes and financing principal payments are excluded because they depend on the buyer’s entity, jurisdiction, borrowing terms, and capital structure.
- Startup investment: Item 7’s initial investment is not an annual operating expense and is not subtracted from one year of revenue.
How much confidence should a buyer place in the range?
Confidence is LIMITED for the estimated annual range covering the 2024 full-time U.S. operating cohort. The percentage evidence is current and same-brand, but the annual dollar range depends on a company-operated revenue proxy, a small voluntary survey, and a pre-labor definition that prevents a complete manager-run profit calculation.
Item 20 reported 69 franchised outlets at the end of 2024, while Item 19 surveyed 23 full-time owners and received eight responses. These denominators describe different populations: outlets are not the same as owners, part-time operators were excluded, and the FDD does not state how the eight respondents compare with nonrespondents by age, territory, geography, service mix, or performance. It also does not provide average or median sales for the respondents, or separate results for trailer-mounted versus van-mounted equipment and exclusive versus non-exclusive territories.
The estimated range is most useful as a labor-sensitive screening range, not as a forecast for a specific territory. The unresolved variables are direct crew labor, franchised-unit sales distribution, owner work hours, and whether the company-operated revenue proxy resembles the buyer’s intended operation.
What should a prospective owner verify before relying on any earnings number?
Because the 2024 full-time U.S. evidence is incomplete, a buyer should treat the range as estimated and reconstruct earnings from written substantiation and franchisee records, with labor separated by owner-operated and manager-run structures. The following checks address the gaps that the public percentage and proxy data cannot resolve.
- Request Item 19 substantiation. Ask for the survey instrument, respondent-level ranges, definitions, and the reason direct labor was excluded.
- Interview full-time and part-time franchisees separately. Record annual sales, trucks, crews, owner hours, payroll, insurance, vehicle costs, rework, and bad debt for comparable territories.
- Separate owner labor from business profit. Value selling, scheduling, supervision, driving, and field work that the owner performs instead of employees.
- Test the royalty calculation by month. Confirm minimum royalties, cumulative calendar-year thresholds, and the January reset against realistic monthly sales.
- Model financing outside operating earnings. Add the buyer’s actual vehicle and equipment loan terms after the operating model is complete.
- Reconcile multi-truck staffing. Do not multiply a one-unit benefit by truck count without crew wages, dispatch capacity, sales coverage, downtime, and shared overhead.
What is the decision-useful takeaway?
The strongest defensible annual figure is an estimated $89,500–$134,300 owner-operator benefit before employee wages, not an official net-income range. Owner involvement is the dominant earnings driver because Item 19 excludes direct labor. The largest unresolved uncertainty is how much technician, crew, and manager payroll a specific multi-truck territory requires. Before making a decision, a buyer should obtain the Item 19 substantiation, reconcile labor and recurring fees to actual franchisee financial statements, and compare full-time owner-operated businesses with genuinely manager-run operations.
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