How Much Does a TemperaturePro Franchise Owner Make?

Officially, Item 19 discloses revenue bands—not owner earnings. For April 1, 2025 through March 31, 2026, it reports Gross annual revenue for 12 outlets that had operated for at least 12 months. The FDD expressly says the figures do not reflect cost of sales, operating expenses, or other costs needed to calculate Net Income or profit.

The applicable entity is a TemperaturePro reporting outlet. It is not necessarily one 500,000-person territory or one owner: the disclosure says franchisees may have multiple territories in major or midsize markets. It also does not disclose the number of outlets in each performance band, the EBITDA values used to sort the bands, or a per-owner result.

Source: 2026 TemperaturePro Franchise Disclosure Document, Item 19, pp. 36–37. The three medians are used as scenario revenue anchors; the bands are historical groupings, not probabilities or forecasts.

How complete is the Item 19 sample?

The official sample covers 12 of 21 outlets, or 57.1%, and excludes newer outlets. Item 19 requires at least 12 months of operation; the middle and bottom bands also refer to outlets in good standing. The FDD says the data came from available ServiceTitan records, but it does not provide a reporting rate by band or explain the other nine outlets individually.

Item 20 adds context: franchised outlets declined from 25 at the start of 2025 to 21 at year-end, with two openings and six outlets recorded as ceasing operations for other reasons. That does not establish why any outlet closed, but it makes survivor and exclusion effects important. Item 20 also reports one company-owned outlet even though the cover says the franchisor does not offer company-owned businesses; Item 19 does not reconcile that population difference.

The estimate starts with the three official Item 19 revenue medians, then applies a transparent industry-margin bridge and TemperaturePro-specific recurring obligations. This is a Mode C estimate for a mature reporting outlet, not a franchisor-reported profit calculation.

• Revenue: $902,913.50, $1,136,527.50, and $2,039,552.50, the official bottom-, middle-, and top-band medians.
• Industry margin: 15.7056%, calculated as 2023 IRS net income less deficit divided by business receipts for all Specialty Trade Contractors, preserving loss-making returns.
• Advertising replacement: the IRS sector’s 0.5959% advertising ratio is added back before substituting TemperaturePro’s disclosed required marketing spend, reducing double counting.
• Percentage fees: 6% royalty plus 1% Advertising and Marketing Fee are subtracted from Gross Sales.
• Fixed marketing: $159,176 conservative, $127,376 base, and $95,576 upside, based on annualized Core Digital Marketing Services, Growth Advertising, the annual analytics subscription, and approximate networking dues disclosed in Item 7.
• Margin sensitivity: the IRS-based bridge is moved down or up by three percentage points because the government benchmark is broad and not franchise-specific.

A business entity may designate a full-time manager, but the owner cannot assume that the franchise is passive. Item 15 says an individual proprietor must directly supervise the business full time. A corporation or other entity may appoint a full-time designated manager who completes training and directly supervises operations.

The owner-operator figure is therefore labeled estimated owner-operator benefit, not pure business profit. It combines residual business economics with the market value of labor the owner performs. The manager-run figure subtracts the BLS construction-industry median wage of $105,260 for General and Operations Managers. It does not include employer payroll taxes, health benefits, bonuses, recruiting costs, or a local wage premium, so the manager-run result may be optimistic.

• Owner-operator benefit: modeled pre-tax benefit after operating costs and franchise obligations, before personal taxes and financing principal, with no separate salary charged for the owner’s full-time labor.
• Manager-run owner earnings: residual after subtracting a supported manager wage; it is not guaranteed passive income.
• Debt treatment: Item 10 says SystemForward America, LLC offers no financing. Specific acquisition debt service is not modeled. The IRS margin embeds aggregate business interest and depreciation, but not a buyer’s particular loan principal or capital-expenditure schedule.
• Tax treatment: all estimates are pre-tax. Personal federal, state, and local taxes depend on entity form, location, deductions, and owner circumstances.

The most visible recurring burden is not only the 7% royalty-and-fund charge; required digital and growth marketing can be larger in dollars. Item 6 requires a 6% royalty and 1% Advertising and Marketing Fee on Gross Sales. Item 7’s detailed note implies monthly Core Digital Marketing Services of $1,599–$2,899 ($1,200–$2,500 plus $399) and Growth Advertising of $6,000–$10,000, plus a $2,388 annual analytics subscription and approximately $2,000 of annual networking dues.

Which disclosed costs are outside the main mature-year model?

Several official obligations remain uncertain or period-specific. The main range excludes costs that cannot be assigned a reliable annual amount without guessing, and it separates first-two-year requirements from a mature-year view.

• ProNetwork Shared Services: $1,200 monthly for the first two years. Subtracting $14,400 would lower every modeled first- or second-year result if that cost is not already absorbed in the industry proxy.
• Online, digital, directory, and social advertising: Item 6 lists $2,500 upon billing but does not state a dependable annual frequency; the scenario does not add it.
• ServiceTitan and technology: use is required, but the current FDD does not provide a complete annual amount for all software and mobile-device costs.
• Annual meeting: $500–$1,000 plus travel, lodging, and meals; omitted because travel varies.
• Insurance, office, vehicles, technicians, materials, and ordinary overhead: treated as embedded in the broad IRS margin proxy rather than subtracted again.

Confidence is LIMITED because the same-brand evidence stops at Gross annual revenue and the profit bridge relies materially on an external government benchmark. The IRS data cover all Specialty Trade Contractors, a broader category than the U.S. Census NAICS 238220 category for Plumbing, Heating, and Air-Conditioning Contractors, and sole proprietorships may be smaller or more owner-dependent than a TemperaturePro outlet.

The three Item 19 revenue bands also represent selected mature reporting outlets, not all new franchisees. Customer relationships, branding, digital acquisition, commercial accounts, sales execution, operational efficiency, and relationships within the franchisor’s systems are listed as characteristics that may differ from a new franchisee. The FDD’s statement that 100% of each band met or exceeded its own average revenue is internally unclear; this analysis does not use that statement.

What variables can move earnings beyond the modeled range?

Advertising productivity, technician economics, and the owner’s labor choice are the largest modeled drivers, while territory composition is the largest unresolved same-brand uncertainty. A reporting outlet may reflect multiple territories, so a buyer cannot assume that a one-territory startup will reproduce a band median.

• Revenue per technician, billable hours, average ticket, callback rate, and seasonal utilization.
• Residential versus commercial mix, maintenance-plan penetration, equipment replacement mix, and gross margin by service line.
• Actual annual spending and return from Core Digital Marketing Services and Growth Advertising.
• Local wages for licensed technicians, dispatch, office staff, a Senior Technician, and a full-time Operations Manager.
• Vehicle finance, inventory, equipment replacement, insurance, office/warehouse rent, and local licensing.
• Whether one Item 19 “outlet” represents one territory, several territories, or a portfolio with shared overhead.

A buyer should obtain the Item 19 substantiation and reconstruct a territory-specific profit-and-loss statement before treating any number as decision-ready. The FDD permits written substantiation on reasonable request, and Item 20 supplies current and former franchisee contacts for independent interviews.

• Ask for the exact count of outlets in each top, middle, and bottom band and the reason nine of 21 outlets were excluded.
• Ask whether the reported “outlets” are single territories, multiple territories, or multi-market portfolios, and request revenue by territory where available.
• Request the EBITDA definition used to rank the bands, including owner compensation, manager wages, depreciation, interest, shared overhead, and related-party charges.
• Request actual 2025–2026 cost-of-sales, technician labor, advertising, occupancy, vehicle, software, and insurance ranges for the 12 reporting outlets.
• Clarify whether the one company-owned outlet in Item 20 is included anywhere in Item 19 and why the cover and Item 20 describe company ownership differently.
• Interview both current and former franchisees about owner hours, manager structure, advertising spend, working capital, closures, transfers, and cash available after debt service.

The strongest defensible range is scenario-based, not official: approximately −$102,000 to $155,000 of annual owner-operator benefit, or −$208,000 to $50,000 of manager-run pre-tax owner earnings for the modeled mature reporting outlet. The most important earnings driver is whether revenue and gross margin can support the FDD’s substantial required marketing and staffing structure. The largest unresolved uncertainty is what one Item 19 reporting outlet represents in territories, managers, and shared overhead.

Before relying on the range, a buyer should verify the Item 19 cohort counts, excluded outlets, territory composition, underlying expense records, and written substantiation, then compare those records with candid current- and former-franchisee interviews. Personal taxes and acquisition-loan principal remain outside the estimate.