For a represented U.S. owner operating roughly 2.5 territories, the strongest defensible range is an independent, pre-tax owner-operator benefit estimate. The 2026 Franchise Disclosure Document reports revenue—not profit—so the range combines 2025 Item 19 median revenue with a government specialty-trade margin benchmark.
Independent estimate, not an Item 19 earnings claim. Patch Boys International, LLC does not disclose owner profit, EBITDA, net income, salary, draw, or distributions in Item 19. This analysis combines identified 2026 FDD facts with a 2023 IRS benchmark and explicit margin sensitivities. Actual results can differ materially by territory count, market, revenue, job mix, technician labor, owner involvement, advertising, vehicle costs, financing, and execution.
- Legal franchisor
- Patch Boys International, LLC, a Delaware limited liability company.
- Current disclosure
- 2026 U.S. Franchise Disclosure Document, issued March 30, 2026; Item 19 covers January 1–December 31, 2025.
- Item 19 status
- Official revenue representation for 83 represented franchise owners and 207 represented franchises; no operating-profit or owner-compensation disclosure.
- Population
- Owners had operated throughout 2025 and owned their businesses for at least one year as of December 31, 2025; average time in market was 3.0 years.
- External benchmarks
- IRS 2023 nonfarm sole-proprietorship data for Specialty Trade Contractors and BLS wage data for General and Operations Managers in Building Finishing Contractors.
- Date checked
- July 17, 2026.
The revenue anchor is current, same-brand Item 19 evidence, but the earnings conversion depends materially on a broad IRS industry benchmark that includes many non-franchised sole proprietors and does not isolate The Patch Boys' cost structure.
OFFICIAL — all 83 represented owners in 2025. Revenue is not earnings.
OFFICIAL — 207 represented franchises in Item 19.
OFFICIAL average for the represented 2025 population.
BENCHMARK — IRS net income less deficit divided by receipts for 2023 Specialty Trade Contractors.
OFFICIAL — plus a current $349 monthly Technology Fee.
OFFICIAL — represented franchises were 207 of 264 system franchises.
What does The Patch Boys Item 19 actually measure?
It measures 2025 Revenue per owner, Revenue per Active Territory, job counts, job value, and operating tenure—not owner earnings. The FDD defines Revenue as sales generated through the business, net of specified refunds and sales tax. Item 19 then states that variable costs, fixed operating expenses, and other expenses must still be deducted to obtain net income or profit.
The population includes 83 of 101 franchise owners, or 82%, and 207 of 264 franchises, or 78%. Fifty-seven franchises were excluded: seven opened during 2025, 26 closed during 2025, and 24 did not report data. These definitions and exclusions appear in the 2026 FDD, Item 19, pages 54–60.
| FDD owner group | Owners | Average active territories | Median revenue per owner |
|---|---|---|---|
| First quartile | 15 | 3.3 | $554,869 |
| Second quartile | 22 | 2.2 | $289,384 |
| Third quartile | 25 | 2.6 | $177,772 |
| Fourth quartile | 11 | 1.9 | $97,202 |
| All represented owners | 83 | 2.5 | $252,414 |
Source: 2026 The Patch Boys Franchise Disclosure Document, Item 19, pages 55–59. Quartiles are groups ranked by average owner revenue; they are not probabilities or promised performance bands.
The official median owner generated $252,414 of Revenue across an average 2.5 Active Territories. That figure cannot be read as salary, business profit, cash flow, or take-home pay.
How is the estimated owner-earnings range calculated?
The model multiplies FDD median owner revenue by an all-in specialty-trade owner-benefit margin. The IRS reports 2023 Specialty Trade Contractors with $257.750 billion of business receipts and $40.481 billion of net income less deficit, producing a 15.7% aggregate ratio. Because sole proprietors generally do not deduct compensation paid to themselves, this ratio is better interpreted as an owner-operator benefit proxy than as passive business profit.
The conservative and upside margins are editorial sensitivities of three percentage points below and above the 15.7% benchmark. They are not FDD-reported margins. The revenue anchors use the FDD's third-quartile, all-owner, and first-quartile median Revenue per Owner values.
| Scenario | FDD median owner revenue | Applied margin | Estimated owner-operator benefit |
|---|---|---|---|
| Conservative | $177,772 | 12.7% | $22,587 |
| Base | $252,414 | 15.7% | $39,643 |
| Upside | $554,869 | 18.7% | $103,792 |
Pre-tax owner benefit before financing principal; rounded chart labels use the calculation table above.
Interpretation: the range is driven more by owner revenue and territory scale than by the three-point margin sensitivity. Sources: 2026 FDD Item 19, pages 55–59; IRS nonfarm sole-proprietorship statistics, 2023 Table 1.
Applying the 15.7% benchmark to the official $116,949 median Revenue per Active Territory produces about $18,368 of estimated owner-operator benefit per territory. The FDD's represented owner, however, averaged 2.5 territories, so a per-owner result cannot be inferred from one territory without a development and staffing assumption.
How do recurring franchise fees affect the estimate?
The FDD imposes an 8% Royalty on Gross Sales and a current $349 monthly Technology Fee. A Brand Marketing Fee is not currently assessed, but the franchisor may establish it at 2% of Gross Sales after notice. The first 12 months also require at least $10,000 of local advertising and marketing.
The IRS margin used here is an all-in net-income benchmark, so the model does not subtract the royalty or technology fee a second time. Instead, the fee figures show why a buyer must test whether The Patch Boys' actual operating expense structure is consistent with the broad industry ratio.
- Royalty
- 8% of Gross Sales; Item 6, pages 11 and 17. Minimum Royalty provisions can apply after the first 12 months when specified minimum sales are not achieved.
- Technology Fee
- $349 per month, or $4,188 annually at the current rate; Item 6, page 12.
- Brand Marketing Fee
- None currently assessed; may become 2% of Gross Sales after notice; Item 6, page 12 and Item 11, page 33.
- Initial local advertising
- At least $10,000 during the first 12 months; Item 11, pages 31–32. The earnings scenarios are not first-year ramp-up forecasts.
At $252,414 of annual Revenue, the 8% Royalty equals about $20,193, and the current Technology Fee adds $4,188. Together they equal roughly 9.7% of base-scenario Revenue before any future Brand Marketing Fee or first-year advertising requirement.
How does active owner involvement change the result?
Active involvement is economically significant because the FDD requires a Managing Owner or approved Designated Manager to provide full-time, year-round management. Item 15 allows a non-owner Designated Manager, but the required management work does not disappear. The owner-operator estimate therefore includes both residual business economics and compensation for labor performed by the owner.
For a manager-run sensitivity, the chart subtracts $65,180—the 2023 national 25th-percentile wage for General and Operations Managers—from the owner-operator benefit. That is a relatively favorable wage assumption. The 2023 BLS industry-specific annual mean for General and Operations Managers in Building Finishing Contractors was $105,400, which would reduce each manager-run result by another $40,220 before payroll taxes or benefits.
Manager-run residual subtracts a $65,180 replacement-manager wage from each scenario.
Interpretation: at lower and central revenue levels, paying a full-time manager can absorb more than the modeled owner benefit. This is a sensitivity, not a same-brand FDD result, and it excludes payroll taxes and benefits. Sources: 2026 FDD Item 15, pages 47–48; BLS General and Operations Managers wage profile; BLS Building Finishing Contractors wages.
An owner who performs the required management role may retain the estimated owner-operator benefit, but part of that amount compensates the owner for full-time labor. It should not be described as passive profit.
What makes the reasonable earnings range uncertain?
The largest unresolved uncertainty is the absence of same-brand expense and profit data. Item 19 provides a strong revenue distribution, but it does not show technician payroll, materials, subcontractor costs, vehicle expense, insurance, local advertising after the opening period, bad debt, or owner compensation.
Item 20 also warrants attention. The system ended 2025 with 264 franchised outlets and no company-owned outlets. During 2025, seven outlets opened, 26 were terminated, 18 transferred to new owners, and the year-end count declined from 284 to 264. The FDD's special-risk page states that 65 franchised outlets were terminated or otherwise ceased operations during the last three years. These figures do not prove why any outlet left, but they increase the importance of current and former franchisee interviews.
The FDD excluded every franchise that did not operate for the full 2025 year and every franchise whose owner did not report data. The resulting revenue figures describe surviving, full-year reporting businesses—not every franchise awarded or operating during the year.
Which assumptions are included or excluded?
- Included
- FDD Revenue per Owner; the average territory structure associated with each FDD group; an all-in IRS sole-proprietor net-income ratio; disclosed recurring fee context.
- Owner compensation
- Not separately deducted in the owner-operator scenarios. The result may include compensation for management labor performed by the owner.
- Manager compensation
- Included only in the separate manager-run sensitivity using a BLS wage proxy.
- Interest and depreciation
- Included only to the extent they are embedded in the IRS aggregate net-income benchmark; they cannot be isolated for The Patch Boys.
- Debt principal
- Excluded. Financing principal payments are cash outflows but not operating expenses in this earnings definition.
- Capital expenditures
- Excluded as separate annual cash deductions; vehicle replacements, equipment, and refurbishing can materially reduce cash available to the owner.
- Personal income taxes
- Excluded. Entity structure, jurisdiction, deductions, and owner circumstances determine after-tax outcomes.
What should a buyer verify before relying on the range?
Ask for written substantiation and reconstruct unit-level economics from actual franchisee records. The Federal Trade Commission advises buyers to examine the source, assumptions, geographic relevance, and typicality of Item 19 claims and to request the franchisor's written substantiation.
- Request the Item 19 substantiation and confirm how Revenue, Active Territory, owner, job count, refunds, and reporting status were validated.
- Ask owners with one, two, and three-plus territories for 2025 profit-and-loss statements, technician payroll, materials, vehicle expense, insurance, marketing, bad debt, and owner hours.
- Separate owner salary or draw from business profit, distributions, retained earnings, and reimbursement of owner expenses.
- Ask whether the owner personally estimates jobs, sells, schedules, performs repairs, supervises technicians, or manages collections.
- Interview franchisees excluded from Item 19, including 2025 closures and non-reporting owners, and compare their ramp-up and working-capital needs.
- Model financing principal, interest, payroll taxes, benefits, vehicle replacement, and capital expenditures separately from operating earnings.
What is the strongest defensible owner-earnings answer?
About $23,000 to $104,000 per year is a reasonable scenario range for pre-tax owner-operator benefit across the selected 2025 owner-revenue bands, with a base estimate near $40,000. It is not an official earnings figure. The most important driver is Revenue per Owner, which is closely linked to territory scale and operating execution. The largest unresolved uncertainty is The Patch Boys' actual unit-level expense structure.
A buyer should verify Item 19 substantiation, obtain actual profit-and-loss records from franchisees with a comparable number of territories, and distinguish the value of the owner's full-time labor from residual manager-run business profit. Debt service, capital expenditures, and personal taxes must then be modeled separately.