A reasonable analytical range for a single-location, actively operated TeamLogic IT business is approximately $59,248 to $133,043 in estimated pre-tax owner-operator benefit, with a base scenario of $93,715. The 2026 Franchise Disclosure Document does not report owner profit; it reports 2025 Gross Revenue, so these figures are estimates rather than franchisor earnings claims.
This range is an independent analytical scenario, not an Item 19 financial performance representation by TeamLogic, LLC. It combines identified FDD facts with an IRS industry benchmark and explicit scenario assumptions. Actual results can differ materially with client mix, product resale, market maturity, labor, local marketing effectiveness, office costs, required software, financing, owner involvement, and execution.
Legal franchisor: TeamLogic, LLC, a Delaware limited liability company; parent Franchise Services, LLC; ultimate parent KOAH, Inc. FDD: issued March 23, 2026 and amended June 1, 2026. Item 19 status: 2025 Gross Revenue only, covering 182 Qualified Franchisees operating 319 businesses. Geographic limitation: Item 20 lists 343 U.S. businesses and one Canadian business at year-end, while Item 19 does not expressly identify whether that Canadian business is within the qualified cohort; no Canadian fee or operating assumptions are used here. Benchmark: IRS Statistics of Income, Tax Year 2023, Computer systems design services; BLS manager-wage reference, May 2023, NAICS 541500. Date checked: July 15, 2026. Confidence is LIMITED because the FDD does not disclose same-brand operating profit or owner compensation, so the earnings range relies materially on an external IRS margin proxy. The official TeamLogic IT U.S. franchise website was used to verify the current franchise offer; no matching public FDD was found on the official franchise-controlled site, so FDD references below are plain-text page citations.
Single-location median Gross Revenue
2025 Item 19 result for 125 Qualified Franchisees with one location.
Base owner-operator benefit
Pre-tax estimate before debt principal and personal income taxes.
Qualified Franchisees
The Item 19 population represented 319 businesses and $233 million of network sales.
Modeled percentage fees
7% Continuing Franchise Fee plus 1.2% Advertising Fund after month 12.
Annual local-marketing minimum
$2,500 per month for the contract term, separate from the Advertising Fund.
Manager wage stress-test
BLS May 2023 annual mean for General and Operations Managers in NAICS 541500.
What does TeamLogic IT Item 19 actually measure?
Officially, Item 19 measures Gross Revenue, not owner earnings. For 2025, the strongest central figure for a prospective single-location buyer is the $405,141 median Gross Revenue reported for 125 Qualified Franchisees operating one location. Their average was $624,483, and only 41 of 125, or 33%, exceeded that average. The gap between median and average shows why the median is the more conservative central revenue anchor. Source: 2026 FDD, Item 19, pp. 29–31.
Item 19 defines Gross Revenue broadly: revenue from services, managed services, product resale, project work, commissions, cloud services, technical support, consulting, and hardware or software sales, excluding freight and sales tax. It is reported per franchisee across all businesses, not necessarily per territory or per outlet. It therefore cannot be renamed salary, profit, cash flow, or take-home pay.
The $405,141 figure is money received by the business before payroll, contractors, product costs, rent, insurance, technology, marketing, royalty, and other operating expenses. It also says nothing directly about owner salary, distributions, retained earnings, debt service, or personal taxes.
Who was included, and who was left out?
The official population was mature enough to be useful, but it was not a full-system census. The 182 Qualified Franchisees had operated for at least 12 months, reported Gross Revenue, and operated throughout the January 1–December 31, 2025 reporting period. Their average system tenure was 7.2 years. Item 19 excluded 22 franchisees operating 25 businesses for less than 12 months and seven franchisees operating eight businesses that closed during 2025.
The notes also say a client base may take two years or more to become statistically representative and discuss the value of including operations at least 24 months old, even though the formal Qualified Franchisee definition uses a 12-month threshold. That drafting tension should be clarified through written substantiation. Conversions with existing clients and new businesses starting from zero can have materially different early revenue profiles.
Item 20 separately reports 343 U.S. franchised businesses and one Canadian business at year-end. Item 19 begins with all 344 businesses and does not expressly say whether the Canadian business is among the 319 qualified businesses. The disclosed revenue cohort therefore cannot be verified as entirely U.S.-only without the franchisor's substantiation; this article uses no Canadian franchise-offer terms or international benchmarks.
| Locations operated by franchisee | Qualified franchisees | Median Gross Revenue | Average Gross Revenue |
|---|---|---|---|
| 1 | 125 | $405,141 | $624,483 |
| 2 | 30 | $1,597,119 | $1,455,403 |
| 3 | 12 | $2,366,586 | $2,317,642 |
| 4 | 5 | $2,178,718 | $2,987,301 |
| 5 or more | 10 | $5,849,777 | $6,815,621 |
These are per-franchisee portfolio figures, not per-location results. They should not be divided or multiplied without knowing territory maturity, shared overhead, staffing structure, acquisition history, and the number of active client bases. Source: 2026 FDD, Item 19, pp. 29–31.
How was the $59,000–$133,000 owner-earnings range estimated?
The range is a reproducible owner-operator scenario anchored to the official single-location median. Because Item 19 supplies one central single-location revenue figure but no single-location distribution or profit data, the model uses 80%, 100%, and 120% of $405,141 as explicit Conservative, Base, and Upside revenue assumptions. Those revenue points are analytical, not FDD-reported quartiles or probabilities.
The operating benchmark comes from the IRS nonfarm sole-proprietorship statistics, Tax Year 2023, Table 2. For Computer systems design services, all businesses reported $16.800 billion of business receipts, $6.220 billion of net income less deficit, and $287.071 million of advertising expense. Those aggregates imply a 37.03% net-income margin and a 1.71% advertising ratio. Schedule C net income does not deduct compensation for the proprietor, so this benchmark is closer to owner-operator benefit than passive business profit.
Estimated owner-operator benefit = Revenue × [(37.03% IRS net-income margin ± 3 percentage points) + 1.71% IRS advertising add-back − 7.00% CFF − 1.20% Advertising Fund] − $30,000 required local marketing.
The model adds back the generic IRS advertising ratio and replaces it with TeamLogic IT's specific $2,500 monthly local-marketing minimum plus the 1.2% Advertising Fund. It also subtracts the 7% Continuing Franchise Fee. The FDD's CFF is based on Gross Sales, which excludes certain stand-alone product resale, while Item 19 Gross Revenue includes product resale. Applying the full 8.2% to all modeled revenue is therefore a conservative simplification when product-only resale is material.
Estimated annual owner-operator benefit by scenario
Single-location model; pre-tax, before financing principal, with active owner labor included.
Interpretation: revenue and margin variation compound. A 20% revenue change plus a three-percentage-point benchmark-margin change creates a wider owner-benefit range than either variable alone.
Sources: 2026 FDD, Item 19, pp. 29–31; Item 6, pp. 8–11. IRS Statistics of Income, Tax Year 2023, Table 2, Computer systems design services. Scenario values are independently calculated and rounded to the nearest dollar.
| Scenario | Revenue assumption | Adjusted variable factor | Owner-operator benefit |
|---|---|---|---|
| Conservative | $324,113 | 27.54% | $59,248 |
| Base | $405,141 | 30.54% | $93,715 |
| Upside | $486,169 | 33.54% | $133,043 |
- Owner compensation
- Not deducted. The figure is owner-operator benefit and includes the economic value of work performed by the owner.
- Manager compensation
- Excluded from the primary scenario and examined separately below.
- Interest and depreciation
- Included indirectly because the IRS Schedule C benchmark includes business-interest and depreciation deductions.
- Required technology and RMM fees
- Not separately subtracted because the IRS all-in industry benchmark already contains technology and operating expenses. Actual TeamLogic IT software, per-user, and per-agent costs may be higher or lower, creating model uncertainty.
- Capital expenditures and debt principal
- Excluded. Depreciation is reflected in the benchmark, but cash capital spending and financing-principal payments are separate owner cash-flow decisions.
- Personal income taxes
- Excluded. Entity choice, state, deductions, owner wages, and personal circumstances determine tax outcomes.
How does owner involvement change the result?
Active owner labor is economically important, and the FDD does not describe a passive model. Item 15 requires the franchisee to directly supervise and participate in day-to-day operations. A manager may be hired, but that does not remove the owner's stated operating obligation. Source: 2026 FDD, Item 15, p. 26.
The primary $59,248–$133,043 range is therefore labeled owner-operator benefit, not pure business profit. To illustrate the effect of replacing substantial owner labor, the chart below subtracts the $169,930 annual mean wage for General and Operations Managers in Computer Systems Design and Related Services from the BLS May 2023 NAICS 541500 estimate. This is a national industry stress-test, not a recommended salary or a TeamLogic IT requirement; small-business manager compensation can differ significantly by market and duties.
Owner labor versus a full manager-wage reference
The right marker is owner-operator benefit; the left marker is residual after subtracting the BLS manager-wage reference.
Interpretation: at the modeled single-location revenue levels, a full national-industry manager-wage reference would absorb more than the estimated owner-operator benefit. This does not establish an actual manager-run loss; it shows that owner labor cannot be treated as free or passive.
Sources: 2026 FDD, Item 15, p. 26. U.S. Bureau of Labor Statistics, May 2023, NAICS 541500, General and Operations Managers annual mean wage. The BLS May 2025 national industry-specific table index confirms the current OEWS industry framework; the exact stress-test value shown uses the accessible May 2023 industry table. Calculations rounded to the nearest dollar.
An owner who performs sales leadership, client relationship management, hiring, and operating supervision may capture both residual business economics and compensation for personal work. A buyer should separate those two components when comparing TeamLogic IT with employment income or a manager-run investment.
Which FDD fees most directly affect annual owner earnings?
The most material disclosed recurring obligations are the 7% Continuing Franchise Fee, the 1.2% Advertising Fund after month 12, and the $2,500 monthly local-marketing minimum. From month 13, the CFF is the greater of 7% of Gross Sales or $1,000 per month, and the Advertising Fund is the greater of 1.2% of gross sales or $200 per month. Source: 2026 FDD, Item 6, pp. 8–11.
At $405,141 of modeled revenue, applying 7% and 1.2% to the full amount produces approximately $28,360 of CFF and $4,862 of Advertising Fund contributions, plus $30,000 of required local marketing. The combined modeled burden is about $63,222 before variable RMM agents, software subscriptions, email users, insurance, payroll, contractors, office rent, and other operating costs.
The official TeamLogic IT cost and fee overview provides public context on startup capital, but the annual earnings model relies on the more detailed recurring-fee terms in the 2026 FDD. Item 7's $115,742–$150,806 initial investment is not subtracted from one year of revenue and is not treated as an annual expense.
- The scenarios use month-13-and-later fee terms; the first-year Advertising Fund exemption is not modeled.
- The 8.2% percentage-fee simplification is applied to Item 19 Gross Revenue even though the CFF's Gross Sales definition excludes some stand-alone product resale.
- The IRS benchmark's ordinary advertising expense is replaced by the FDD's minimum local marketing and Advertising Fund; other expense categories remain embedded in the benchmark.
- Variable RMM, PSA, antivirus, productivity suite, email, QuickBooks Online, CRM, approved LLM, insurance, and technician costs are not separately rebuilt because doing so would double-count parts of the all-in IRS benchmark.
- No debt structure is assumed. Item 10 states that TeamLogic, LLC does not offer or guarantee financing.
What could move actual owner earnings outside the range?
The largest uncertainty is the absence of same-brand expense and owner-compensation data. Item 19 shows revenue dispersion but no gross margin, payroll ratio, operating profit, EBITDA, net income, owner compensation, or cash flow. The IRS benchmark is structurally relevant to computer systems design services, yet it combines independent sole proprietors with different client mixes, scale, staffing, fee structures, and operating practices.
- Recurring managed-services mix
- Stable recurring contracts can change revenue quality, technician utilization, support-tool costs, and labor scheduling compared with project-heavy or break/fix work.
- Product resale share
- Item 19 Gross Revenue includes hardware and software sales, while Item 6's CFF definition can exclude stand-alone product resale. Revenue composition therefore affects effective franchise-fee burden and gross margin.
- Client-base maturity
- The FDD says the business-client base is built over time, often from scratch, and may take two years or more to become statistically representative.
- Owner labor and sales execution
- Item 15 requires direct supervision and day-to-day participation. The owner's selling, account management, recruiting, and operating capability can change both revenue and the amount of paid management labor required.
- Technician and contractor structure
- Item 8 requires at least one onsite qualified technician certified on the RMM tools. Wage levels, utilization, subcontracting, and service-level obligations can materially change margin.
- Closed and newer businesses
- Item 19 excluded seven franchisees that closed during 2025 and 22 franchisees with less than 12 months of operation. The published cohort is therefore not a probability distribution for every new buyer.
Item 20 supplies useful system context rather than earnings proof. U.S. franchised outlets increased from 310 at the start of 2025 to 343 at year-end, with 41 openings, one non-renewal, and seven businesses ceasing operations for other reasons. After year-end, 28 previously franchised businesses were acquired and operated through IT Assist Holdings, LLC. Those acquired company-operated businesses were not mixed into the 2025 Item 19 franchised results. Source: 2026 FDD, Item 20, pp. 31–39.
What should a buyer verify before relying on this range?
A buyer should treat the $59,248–$133,043 range as a screening model and replace its benchmark assumptions with same-brand evidence. The highest-value diligence is to obtain Item 19 substantiation, compare it with franchisee profit-and-loss statements using consistent definitions, and determine how much owner labor is embedded in reported results.
- Request written Item 19 substantiation and reconcile the 12-month Qualified Franchisee definition with the note discussing operations at least 24 months old.
- Confirm whether the Canadian business shown in Item 20 is included in Item 19 and request a U.S.-only single-location median if it is.
- Ask for single-location expense ratios for payroll, contractors, product costs, occupancy, insurance, RMM agents, PSA, software, and local marketing.
- Separate service Gross Sales from hardware and software resale so the effective 7% CFF base can be calculated correctly.
- Interview current one-location franchisees near the $405,141 median, not only top-quartile or multi-territory owners.
- Ask each franchisee to separate owner salary, owner draw, distributions, retained earnings, depreciation, interest, capital spending, and debt principal.
- Document the owner's actual weekly duties and the market cost of replacing each duty with a manager, salesperson, service coordinator, or technician.
- Review the contacts and recent departures in Item 20, including businesses that ceased operations, transferred, or were acquired after the reporting period.
What is the strongest defensible earnings answer?
The strongest defensible answer is an estimated $59,248–$133,043 in annual pre-tax owner-operator benefit for a single-location TeamLogic IT business, with a $93,715 base scenario. It is scenario-based, not an official profit disclosure. The most important earnings driver is the combination of client-base revenue and owner-performed labor. The largest unresolved uncertainty is same-brand operating expense and owner-compensation data. Before treating the range as decision-grade, a buyer should verify Item 19 substantiation, fee-base definitions, mature single-location profit-and-loss statements, and owner workload through interviews with current and former franchisees.