SVN does not disclose annual owner earnings. A limited-confidence, FDD-anchored scenario estimates approximately $96,000 to $223,000 in pre-tax manager-run owner earnings for one U.S. commercial real estate brokerage office. When the owner personally performs the day-to-day management role, the modeled owner-operator benefit is about $175,000 to $301,000, including the estimated market value of that labor.
This range is an independent analytical scenario, not an Item 19 financial performance representation by SVN International Corp. It combines identified facts from the 2026 Franchise Disclosure Document with U.S. Census Bureau, Internal Revenue Service, and Bureau of Labor Statistics benchmarks plus clearly labeled analytical assumptions. Actual results can differ materially by market, office structure, commission splits, advisor production, labor, occupancy, financing, owner involvement, and execution.
Data basis. Legal franchisor: SVN International Corp., a Delaware Public Benefit Corporation. The Franchise Disclosure Document was issued March 31, 2026 and amended June 3, 2026. Item 19 covers historic growth in Gross Receipts for 85 measured franchised outlets, but it provides no absolute sales, expense, net-income, or owner-compensation figure. The estimate therefore uses the SVN office format and recurring obligations from Items 6, 7, and 15; 2022 Census Statistics of U.S. Businesses data for NAICS 531210; 2022 IRS corporation data for Offices of Real Estate Agents and Brokers; and May 2025 BLS real-estate wage data. Checked July 20, 2026.
Pre-tax residual after the all-in corporate expense benchmark, before debt principal and personal taxes.
SCENARIOAverage receipts per employer establishment in NAICS 531210, not an SVN sales disclosure or a median.
BENCHMARK2022 IRS total receipts less total deductions for active corporations in the relevant industry.
DERIVED BENCHMARKMeasured outlets versus total franchised outlets at December 31, 2025; the disclosure reports growth, not earnings.
OFFICIAL FDD$14,400 Platform Fee plus $1,800 Product Council Marketing Fee, before royalties and user accounts.
OFFICIAL FDDBLS 2025 mean wage for property, real estate, and community association managers in NAICS 531.
BENCHMARKWhat does SVN’s 2026 Item 19 actually measure?
It measures historic growth in Gross Receipts, not annual sales levels or owner earnings. The official disclosure follows 85 franchised outlets over varying periods within January 1, 2016 through December 31, 2025. It reports an average Gross Receipts growth rate of 265.92%, a median of 173.92%, a high of 2,558.21%, and a low of negative 81.30%.
The FDD defines Gross Receipts for this Item 19 as commission revenue generated by completed transactions before expenses or commission splits are deducted. It includes commissions from sales, leases, referrals, auctions, consulting, and other real-estate-related services. The disclosure expressly states that the figures do not include the costs and expenses required to calculate net income or profit. Source: 2026 SVN International Corp. FDD, Item 19, pp. 43–45.
| Official Item 19 metric | Result | What it means |
|---|---|---|
| Average Gross Receipts growth rate | 265.92% | Average ratio of post-baseline annual Gross Receipts to baseline-year Gross Receipts across measured outlets. |
| Median Gross Receipts growth rate | 173.92% | The middle reported growth result; it is not a median dollar revenue figure. |
| Outlets meeting or exceeding average growth | 23 / 85 | 27.06% of measured outlets met or exceeded the disclosed average growth rate. |
| High growth rate | 2,558.21% | The highest measured growth result, not a reasonable default forecast. |
| Low growth rate | −81.30% | The lowest measured result was a substantial decline, showing wide variation. |
Even the Item 19 Gross Receipts measure is upstream of advisor commission splits, payroll, rent, insurance, marketing, technology, royalties, and other operating costs. The growth percentages cannot be converted into owner income because the FDD does not disclose the baseline dollars or the expense structure of the measured offices.
How representative is the Item 19 population?
The official growth disclosure covers 85 of 115 franchised outlets at year-end 2025, or 73.9% of the system. Thirty outlets were excluded: 17 did not provide financial information, eight combined multiple outlets into one report, one opened in September 2024, and four opened during 2025. Nine additional outlets that closed during 2025 were outside the 115 year-end total and were not part of the measured population.
Item 20 also shows that franchised outlets declined from 139 at the start of 2023 to 115 at the end of 2025, while company-owned outlets remained at zero. That population change does not prove why offices left or predict future earnings, but it increases the importance of reviewing closures, nonrenewals, transfers, and former-franchisee interviews. Source: 2026 SVN International Corp. FDD, Items 19 and 20, pp. 43–54.
How is the annual earnings range estimated?
The estimate applies a broad corporate operating-margin proxy to a broad employer-establishment revenue proxy. This is a structural model, not a forecast of a particular SVN office. The FDD supplies the operating format, owner-role requirements, and recurring fee structure, but not the absolute revenue or expense data needed for a same-brand profit calculation.
= scenario revenue × scenario operating margin
Conservative: 80% of revenue anchor × (IRS margin − 3 percentage points)
Base: 100% of revenue anchor × IRS margin
Upside: 120% of revenue anchor × (IRS margin + 3 percentage points)
- Revenue anchor: Census 2022 SUSB receipts of $180.013 billion divided by 165,585 employer establishments in NAICS 531210 equals $1,087,136 per establishment. This is an average, not a median, and covers residential and commercial brokerages of many sizes.
- Margin anchor: IRS 2022 active corporations classified as Offices of Real Estate Agents and Brokers reported $121.145 billion of total receipts and $104.109 billion of total deductions. The difference, $17.036 billion, equals 14.06% of receipts.
- Scenario spread: Revenue uses 80%, 100%, and 120% of the Census average. Margin uses 11.06%, 14.06%, and 17.06%. Both spreads are editorial sensitivity assumptions, not FDD results or probabilities.
- Expense treatment: The IRS margin is all-in at the industry level and includes compensation of officers, salaries and wages, rent, advertising, taxes and licenses, interest, depreciation, and other deductions. SVN fees are therefore not subtracted again, which would risk double counting. Their disclosed burden is reviewed separately below.
- Owner and manager compensation: Officer compensation and employee wages are embedded in the corporate benchmark but cannot be isolated for a typical office. The manager-run result assumes a normal management cost is reflected in that aggregate; the owner-operator case separately adds a BLS manager wage as labor value.
- Financing, depreciation, capital spending, and taxes: Industry-level interest and depreciation are included in the IRS deductions. Financing principal, capital expenditures, personal income taxes, owner-specific tax treatment, and employer benefits or payroll burden on the BLS replacement-manager wage are not modeled separately.
| Scenario | Revenue | Margin | Manager-run earnings |
|---|---|---|---|
| Conservative | $869,708 | 11.06% | $96,209 |
| Base | $1,087,136 | 14.06% | $152,875 |
| Upside | $1,304,563 | 17.06% | $222,587 |
Estimated annual manager-run pre-tax owner earnings, before debt principal and personal taxes
Interpretation: Both sales and margin matter. The endpoints are sensitivity cases, not a prediction interval, and the base is not labeled “most likely.”
Source and method: Derived from 2022 Census SUSB NAICS 531210 receipts per establishment and the 2022 IRS corporate ratio of total receipts less total deductions to total receipts, with explicit 80%/100%/120% revenue and −3/0/+3 percentage-point margin assumptions.
How does owner involvement change the result?
An SVN owner cannot treat this as a passive ownership model under the 2026 FDD. Item 15 says the owner must personally supervise the business and dedicate full time and attention even when day-to-day operations are delegated to a licensed Broker in Charge or Managing Director. A manager-run scenario therefore still assumes substantial owner oversight.
For the owner-operator case, the model adds $78,330—the BLS 2025 mean annual wage for property, real estate, and community association managers in the real-estate subsector—to the manager-run residual. The result is labeled owner-operator benefit, not pure business profit, because it includes the market value of labor performed by the owner.
Manager-run residual versus owner-operator benefit in each scenario
Interpretation: The $78,330 gap is compensation for management work. It should not be described as passive profit, and actual employer payroll taxes or benefits could make hiring a manager more expensive than the wage-only benchmark.
Source and method: Manager-run scenarios above plus the BLS May 2025 mean wage for property, real estate, and community association managers in NAICS 531. FDD owner obligations: 2026 SVN International Corp. FDD, Item 15, p. 34.
The modeled owner-operator benefit is $174,539, $231,205, or $300,917 across the three scenarios. Only the manager-run residual—$96,209, $152,875, or $222,587—is intended to approximate business earnings after a normal corporate expense structure. The added labor value is compensation for work performed.
How do SVN’s recurring fees affect the earnings model?
The 2026 FDD imposes a meaningful recurring fee floor, but the model does not subtract those fees twice. Production Royalty is 7% of annual Gross Receipts up to $2 million, 5% on the portion from $2 million through $4 million, and 3% above $4 million. For a standard franchise, the minimum annual royalty is $20,000 in year one and $50,000 in later years. Small-market and Teams Program minimums differ.
The annual Platform Fee is $14,400 and the Product Council Marketing Fee is $1,800. A Brand Fund contribution may be imposed up to 2% of Gross Receipts, but the FDD states that no Brand Fund had been formed. User-account fees, conference attendance, insurance, office costs, advisor compensation, local marketing, and other operating expenses can also affect the result. Source: 2026 SVN International Corp. FDD, Item 6, pp. 6–13.
| Scenario revenue | 7% production royalty | Fixed fees | Illustrative total |
|---|---|---|---|
| Conservative: $869,708 | $60,880 | $16,200 | $77,080 |
| Base: $1,087,136 | $76,099 | $16,200 | $92,299 |
| Upside: $1,304,563 | $91,319 | $16,200 | $107,519 |
This fee table is a reasonableness check, not an additional deduction from scenario earnings. The IRS corporate margin already reflects an all-in industry expense structure. The table excludes user-account fees, conference costs, a potential future Brand Fund contribution, property-management royalties, and other variable obligations.
Why can the fee percentage decline as sales rise?
The fixed $16,200 annual fees are spread over more revenue, while all three scenario revenues remain below the first $2 million royalty breakpoint. The illustrative burden is about 8.86% of revenue in the conservative case, 8.49% in the base case, and 8.24% in the upside case. That does not mean higher revenue automatically produces higher owner earnings; commission splits, staffing, occupancy, and marketing may rise with production.
What could move actual owner earnings outside this range?
The largest unresolved variable is the office-specific commission and compensation structure. Item 19 measures commission revenue before expenses and splits, but it does not disclose advisor splits, producer concentration, transaction mix, rent, payroll, lead-generation cost, or owner compensation. Those variables can overwhelm a broad industry margin assumption.
- Gross Receipts: revenue before the expenses and commission splits needed to determine profit. It is not owner income.
- Manager-run owner earnings: modeled residual business profit after an all-in corporate operating-cost proxy, before debt principal and personal taxes. The owner still has full-time supervisory duties under Item 15.
- Owner-operator benefit: manager-run residual plus the wage value of management labor performed by the owner. It combines businessprofit and labor compensation.
- Debt service: financing interest may affect accounting profit and cash flow; principal payments reduce cash available to the owner but are not an operating expense. No debt structure is assumed here.
- Personal taxes: excluded. After-tax take-home pay varies by entity structure, deductions, state and local jurisdiction, and owner circumstances.
The official SVN evidence and the external benchmarks answer different questions. Item 19 shows same-brand historical Gross Receipts growth but no dollar baseline. Census provides employer-establishment receipts but no profit. IRS provides a broad corporate margin but not an SVN-specific margin. BLS provides a wage proxy but not the full cost of employing a Managing Director. The estimate is therefore useful for sensitivity analysis, not precise underwriting.
What should a buyer verify before relying on any earnings estimate?
Request office-level evidence that converts Gross Receipts into cash available to the owner. The FTC advises prospective franchisees to examine the source, population, assumptions, and limitations behind Item 19 claims and to ask for written substantiation.
- Item 19 substantiation: ask for the written support behind the Gross Receipts growth disclosure and determine the baseline dollars for offices comparable in age, market, advisor count, and service mix.
- Franchisee profit-and-loss statements: ask current and former franchisees for normalized revenue, advisor commission splits, payroll, occupancy, insurance, marketing, technology, and owner compensation.
- Owner role: confirm how much time owners devote to supervision, production, recruiting, compliance, and management, and whether they employ a separate Managing Director or Broker in Charge.
- Recurring fee reconciliation: verify royalty minimums, Platform Fee, Product Council Marketing Fee, user accounts, conference attendance, any Brand Fund activation, and costs imposed through approved suppliers.
- Item 20 movement: interview franchisees associated with closures, nonrenewals, and transfers to understand whether local economics, retirement, consolidation, or another factor drove the change.
- Debt and taxes: build a separate cash-flow schedule for interest, principal, working capital, capital spending, and owner-specific taxes.
What is the strongest defensible annual earnings range?
The strongest defensible published range is an independent estimate of roughly $96,000 to $223,000 in annual pre-tax manager-run owner earnings per office. An actively operating owner who replaces paid day-to-day management may receive an estimated owner-operator benefit of about $175,000 to $301,000, but the added amount compensates labor and is not passive business profit.
The most important earnings driver is the conversion of commission Gross Receipts into retained margin after advisor splits and operating costs. The largest unresolved uncertainty is that SVN’s 2026 Item 19 does not disclose absolute revenue, expenses, or owner compensation. A buyer should verify the Item 19 substantiation, obtain comparable office profit-and-loss evidence, and test the scenario assumptions in interviews with current and former franchisees before treating any range as decision-grade.