Your Role:
As a Branch Operator, you will be responsible for launching and managing a new branch of Muscleman Elite Moving & Storage. While the main office handles sales, marketing oversight, administration, accounting, and systems, your key responsibilities will include:
Managing crews and equipment
Overseeing dispatch operations
Handling claims & Customer service
Managing daily operations
Operational compliance
1. Base Pay:
Weekly Base Salary: $800
Note: The base salary is contingent upon actively serving as the Branch Manager. If you transition out of the Branch Manager role, the salary will cease.
2. Monthly Profit Share:
You will receive 50% of the branches net monthly profit
3. Transitioning from Active Management:
If you choose to step down from active management, you are responsible for appointing an Operations Manager to oversee the branch. If the branch revenue cannot support a Operations Manager’s salary, the Headquarters (HQ) fee will increase to 20% to cover the cost of a remote Operations Manager.
Operations Manager Compensation: The salary for an Operations Manager varies based on branch size:
Standard Branches: $50,000 to $75,000 annually.
Large Branches (Over $2 million in gross revenue): Salaries may exceed $75,000.
4. Branch Sale or Buyout Bonus:
The company reserves the right to buy out the branch at any time, particularly in cases of underperformance requiring new leadership or to ensure adequate cash flow for the branch’s growth when a Branch Operator steps down. If a buyout does not occur, the Branch Operator will continue to receive 50% of the branch’s net profit.
In the event of a branch sale or company buyout, your Bonus will be determined based on the branch’s trailing 12-month net profit, using the following multipliers:
Net Profit Below: $50,000 10% (Revenue x .10% = bonus)
Net Profit Between $50,000 and $99,999: .5x multiplier.
Net Profit Between $100,000 and $149,999: 1× multiplier.
Net Profit Between $150,000 and $249,999: 1.5× multiplier.
Net Profit of $250,000 and $350,000: 2.5× multiplier.
Note: Your bonus is calculated by multiplying the branch’s trailing 12-month net profit by the applicable multiplier. As the Branch Operator, you are entitled to 50% of this calculated amount.
5. Performance Standards:
To qualify for potential buyout bonuses:
Google Rating: Must have a rating of 4.9 or higher with a minimum of 100 reviews.
Process Compliance: Adhere to company systems and reporting procedures.
Conduct: Avoid behavior that could harm the company’s reputation or violate policies.
Failure to meet these standards may result in ineligibility for buyout bonuses.
Note: While maintaining a high volume of positive reviews is essential, ensure that all reviews are genuine and comply with Google’s policies. Offering incentives for reviews is against Google’s guidelines and can lead to penalties, including the removal of reviews and potential sanctions against the business.
Profit and Loss Statement Example:
Below is an example Profit and Loss Statement for a branch achieving $1,000,000 in annual sales. This example assumes the Branch Manager is no longer participating in moving jobs. Active involvement in moves during the initial 6 to 12 months can reduce labor costs and increase net income, as this participation is not separately compensated but contributes to overall profitability.
Example: Profit and Loss Statement
Projected for January – December
| Description | Percentage | Amount |
|---|---|---|
| Income | ||
| Sales | 100.00% | $1,000,000.00 |
| Total Income | 100.00% | $1,000,000.00 |
| Cost of Goods Sold (COGS) | ||
| Direct Labor (Contract + Payroll) | 32.00% | $320,000.00 |
| Moving – Food on the Road | 0.28% | $2,800.00 |
| Truck Fuel | 4.00% | $40,000.00 |
| Moving – Job Supplies | 0.60% | $6,000.00 |
| Moving – Overnight Lodging | 0.64% | $6,400.00 |
| Moving – Packing Materials | 1.60% | $16,000.00 |
| Moving – Storage Rental (Packing Materials) | 0.20% | $2,000.00 |
| Moving – Tolls | 0.04% | $400.00 |
| Truck – Equipment Rentals | 0.31% | $3,100.00 |
| Truck Lease | 3.00% | $30,000.00 |
| Total COGS | 42.67% | $426,700.00 |
| Gross Profit | 57.33% | $573,300.00 |
| Operating Expenses | ||
| HQ Fee (Sales & Support) | 12.00% | $120,000.00 |
| Advertising and Promotional | 7.85% | $78,500.00 |
| Bank Service Charges | 0.30% | $3,000.00 |
| Insurance | 4.28% | $42,800.00 |
| Merchant Account Fees | 2.70% | $27,000.00 |
| Payroll Expenses – Employer Paid Taxes | 2.89% | $28,900.00 |
| Payroll Service Fees | 0.60% | $6,000.00 |
| Professional Fees | 1.53% | $15,300.00 |
| Total Operating Expenses | 32.15% | $321,500.00 |
| Net Operating Income | 25.18% | $251,800.00 |
| Branch Operator’s Salary | 4.00% | $40,000.00 |
| Net Income (Profit Before Split) | 21.18% | $211,800.00 |
| Profit Distribution | ||
| Company Share (50% of Net Income) | 10.59% | $105,900.00 |
| Branch Operator’s Share (50% of Net Income) | 10.59% | $105,900.00 |
| Total Compensation to Branch Operator | 14.59% | $145,900.00 |
Buyout Example Calculation:
Based on the above Profit and Loss Statement:
Annual Sales: $1,000,000
Net Income (Profit Before Split): $211,800
Determine the applicable multiplier:
With a net profit of $211,800, the 1.5× multiplier applies (as it falls between $150,000 and $249,999).
Calculate the total buyout amount:
$211,800 × 1.5 = $317,700
Calculate the Branch Operator’s share:
As the Branch Operator holds a 50% profit share:
$317,700 × 50% = $158,850
Summary:
In this scenario, if the company decides to acquire or buy out the branch, the Branch Operator would receive a payout of $158,850, based on the branch’s net profit and the established multiplier.
Get started!
Contact:
Hours:
Mon-Sat: 8 AM – 5:30 PM
Sundays: Closed
USDOT 2105156 TxDMV No. 006568203C
TxDMV Toll Free: 1.888.368.4689
Contact:
Hours:
Mon-Sat: 8 AM – 5:30 PM
Sundays: Closed
USDOT 2105156 TxDMV No. 006568203C
TxDMV Toll Free: 1.888.368.4689
Service Areas:
Mon-Sat: 8 AM – 5:30 PM
Sundays: Closed
USDOT 2105156 TxDMV No. 006568203C
TxDMV Toll Free: 1.888.368.4689
Service Areas:
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