In this exclusive Franchise Chatter FDD Talk post, you’ll learn the following:

Section I – Estimated initial investment (franchise costs) for The Dog Wizard franchise, based on Item 7 of the company’s 2024 FDD

Section II – Initial franchise fee, royalty fee, and marketing fee for The Dog Wizard franchise, based on Items 5 and 6 of the company’s 2024 FDD

Section III – Number of franchised and company-owned The Dog Wizard outlets at the start of the year and the end of the year for 2021, 2022, and 2023, based on Item 20 of the company’s 2024 FDD

Section IV – News updates on The Dog Wizard franchise opportunity

Section V – Presentation and analysis of The Dog Wizard’s financial performance representations (average revenues and/or profits), based on Item 19 of the company’s 2024 FDD, including information on the:

• 2023 average gross revenue, total leads, total evaluations, total clients, conversion rate of total leads generated to an evaluation, close rate on total evaluations generated to result in a customer contact, sale, revenue per trainer, number of trainers per franchise, and territory population for the 45 franchised and 3 company-owned The Dog Wizard outlets that operated for the full calendar year 2023
  

• 2023 total revenue, average revenue per service, and total clients by service for the 45 franchised and 3 company-owned The Dog Wizard outlets that operated for the full calendar year 2023

• 2023 average gross revenue, total leads, total evaluations, total clients, conversion rate of total leads generated to an evaluation, close rate on total evaluations generated to result in a customer contact, sale, revenue per trainer, number of trainers per franchise, and territory population for the 3 company-owned The Dog Wizard outlets that operated for the full calendar year 2023

• 2023 actual and average income, cost of goods sold, gross profit, disclosed expenses, and net operating income for the 3 company-owned The Dog Wizard outlets that operated for the full calendar year 2023

• 2023 total, average, median, highest, and lowest revenue per service for the 30 The Dog Wizard outlets providing services

Section VI – Key ratios, comparables, computations, and analyses for The Dog Wizard franchise opportunity (exclusive content for Platinum subscribers)

Section I – The Dog Wizard Franchise Costs

• The Dog Wizard franchise costs, based on Item 7 of the company’s 2024 FDD:

• Initial Franchise Fee:  $60,000
• Travel and Living Expenses to Attend Initial Training:  $2,000 to $4,000
• Initial Training Fee:  $10,000 to $30,000
• Start-up Kit:  $6,000 to $7,300
• Start-up Digital Marketing:  $5,400 to $8,400
• Licenses:  $1,000 to $1,500
• Computers, Software, Office Equipment, Furniture, Phones, Answering Service:  $750 to $2,500
• Professional Fees:  $0 to $2,500
• Insurance:  $1,500 to $2,500
• Utilities and Operational Services:  $250 to $500
• Vehicle Expenses:  $0 to $5,000
• Vehicle Wrap Production and Installation:  $2,500 to $4,000
• Inventory and Supplies:  $500 to $750
• Additional Funds – 3 Months:  $25,800 to $65,400
• Total Estimated The Dog Wizard Franchise Costs:  $115,700 to $194,350

Section II – The Dog Wizard’s Initial Franchise Fee, Royalty Fee, and Marketing Fee

• The Dog Wizard’s initial franchise fee, royalty fee, and marketing fee, based on Items 5 and 6 of the company’s 2024 FDD:

• Initial Franchise Fee:  $60,000
• Royalty Fee:  8% of Gross Revenues
• Brand Fund:  2% of Gross Revenues
• Local Advertising/Search Engine Optimization:  $1,500 per month, of which $454 is paid to The Dog Wizard towards the Digital Marketing Program

Section III – Number of Franchised and Company-Owned The Dog Wizard Outlets

Franchised

2021

• Outlets at the Start of the Year:  30
• Outlets at the End of the Year:  34
• Net Change:  +4

2022

• Outlets at the Start of the Year:  34
• Outlets at the End of the Year:  35
• Net Change:  +1

2023

• Outlets at the Start of the Year:  35
• Outlets at the End of the Year:  66
• Net Change:  +31

Company-Owned

2021

• Outlets at the Start of the Year:  3
• Outlets at the End of the Year:  1
• Net Change:  -2

2022

• Outlets at the Start of the Year:  1
• Outlets at the End of the Year:  3
• Net Change:  +2

2023

• Outlets at the Start of the Year:  3
• Outlets at the End of the Year:  3
• Net Change:  0

Section IV – News Updates on The Dog Wizard Franchise

Section V – Financial Performance Representations (Average Revenues and/or Profits) for The Dog Wizard Franchise (Item 19, 2024 FDD)

• Parts 1 and 2 below show system wide average figures and key performance indicators tracked by the franchise system based on the outlets that operate mobile, from a physical facility or storefront building. Part 2 shows system wide averages by service offering.

• Part 3 below shows company-owned outlet average figures and key performance indicators tracked by the franchise system. These company-owned outlets operate from a mobile business from the trainers’ homes. Key operational differences between the company-owned outlets and franchised outlets are detailed in the notes below.

• Part 4 shows the 3 company-owned outlets’ profit and loss statement for the calendar year 2023. Key operational differences between the company-owned outlets and franchised outlets are detailed in the notes below.

• Of the 69 total outlets (66 franchised and 3 company-owned outlets) that operated in 2023, only 45 of the franchised outlets operated for the full calendar year 2023. 21 franchised outlets were not included in the data set because they did not operate for the full calendar year.

• 28 of the franchised outlets operated mobile businesses from their home or trainers’ home and 17 outlets operated from a facility or storefront.

• The Dog Wizard has 3 company-owned outlets that operated for the full 2023 calendar year.

Part 1 – Systemwide Figures

Average

• 2023 Gross Revenue:  $262,139
• Total Leads:  844
• Total Evaluations:  340
• Total Clients:  141
• Conversion Rate of Total Leads Generated to an Evaluation:  42%
• Close Rate on Total Evaluations Generated to Result in a Customer Contract:  39%
• Sale:  $1,963
• Revenue per Trainer:  $99,497
• Number of Trainers Per Franchise:  3
• Territory Population:  480,220

• Five locations operate under contiguous territories utilizing the same resources, staff, operating system, and business assets but identify as one location in the market. One of these locations operates 10 outlets, one of these locations operates 4 outlets, and three of these locations operate 2 outlets.

• The revenue reporting is by territory outlet, the percentage of revenue that makes up the total has been applied to all other metrics to separate the proportionate totals for other key performance indicators and utilized for the respective financial representations.

• Average Total Leads Generated is defined as the leads generated by each outlet, averaged across all outlets.

• Average Total Evaluations is defined as the number of evaluations conducted by each outlet averaged across all outlets.

• Average Total Clients is defined as the number of clients serviced by each outlet averaged across all outlets.

• Average Conversion Rate of Total Leads Generated to an Evaluation is obtained by determining the total number of leads generated in an outlet and dividing the total number of evaluations conducted by that figure, then averaged across all outlets.

• Average Close Rate on Total Evaluations Generated to Result in a Customer Contract is obtained by determining the total number of client contracts serviced in an outlet and dividing the total number of evaluations conducted by that figure, then averaged across all outlets.

• Average Sale is defined as the average client revenue per outlet per client contract sold and averaged across all outlets.

• Average Revenue per Trainer is obtained by averaging each outlet’s total reported revenue and dividing that figure by the number of trainers at that outlet.

• Average Number of Trainers is defined as the average number of trainers servicing clients per outlet. For the five locations operating as contiguous three of them have more than one trainer and it is assumed that of the total trainers servicing the territory that they are servicing it at 45% capacity and is the value used in the average.

• Average Territory Population is obtained by averaging each outlet’s total population and dividing that figure by the number of outlets. Some outlets are on a prior version of contract increasing the average.

• Training Services are all the current training services offered. Outlets are not required to offer all services and at their own discretion set their own pricing appropriate to their market, demand and reputation.

Part 2 – Systemwide Revenue by Service

Puppy Class

• Total Revenue:  $235,928
• Average Revenue Per Service:  $424
• Total Clients:  556

Private Puppy

• Total Revenue:  $286,932
• Average Revenue Per Service:  $914
• Total Clients:  314

Puppy Jumpstart 7

• Total Revenue:  $66,512
• Average Revenue Per Service:  $1,478
• Total Clients:  45

Puppy Jumpstart 14

• Total Revenue:  $823,630
• Average Revenue Per Service:  $2,347
• Total Clients:  351

Puppy Jumpstart 21

• Total Revenue:  $157,949
• Average Revenue Per Service:  $2,980
• Total Clients:  53

Foundation Class

• Total Revenue:  $199,784
• Average Revenue Per Service:  $467
• Total Clients:  428

Private Foundation Program

• Total Revenue:  $465,141
• Average Revenue Per Service:  $983
• Total Clients:  473

Freedom Class

• Total Revenue:  $87,894
• Average Revenue Per Service:  $988
• Total Clients:  89

Private Freedom Program

• Total Revenue:  $1,410,871
• Average Revenue Per Service:  $1,876
• Total Clients:  752

Day School Program 6

• Total Revenue:  $288,156
• Average Revenue Per Service:  $1,801
• Total Clients:  160

Day School Program 15

• Total Revenue:  $342,402
• Average Revenue Per Service:  $2,394
• Total Clients:  143

Day School Program 21

• Total Revenue:  $86,210
• Average Revenue Per Service:  $4,789
• Total Clients:  18

Jumpstart 7

• Total Revenue:  $337,932
• Average Revenue Per Service:  $1,469
• Total Clients:  230

Jumpstart 14

• Total Revenue:  $5,204,714
• Average Revenue Per Service:  $3,139
• Total Clients:  1,658

Jumpstart 21

• Total Revenue:  $1,571,965
• Average Revenue Per Service:  $3,366
• Total Clients:  467

Custom Program

• Total Revenue:  $230,237
• Average Revenue Per Service:  $390
• Total Clients:  591

Part 3 – Corporate Store Figures

Average

• 2023 Gross Revenue:  $197,742
• Total Leads:  1,068
• Total Evaluations:  432
• Total Clients:  112
• Conversion Rate of Total Leads Generated to an Evaluation:  40%
• Close Rate on Total Evaluations Generated to Result in a Customer Contract:  28%
• Sale:  $1,638
• Revenue per Trainer:  $84,251
• Number of Trainers Per Franchise:  2
• Territory Population:  385,556

Part 4 – Corporate Store Profit and Loss Statement (Accrual Basis)

Corporate 1

Income:  $151,430.00

Cost of Goods Sold:  $59,001.23

Gross Profit:  $92,428.77

Expenses

• Academy Training Expense:  $2,500.00
• Advertising and Marketing:  $8,835.13
• Bank Charges and Fees:  $3,488.67
• Conference/Contractors:  $0.00
• Franchise Fees:  $22,025.36
• Insurance:  $0.00
• Management Fees:  $0.00
• Office Expenses:  $4.99
• Payroll Expenses:  $0.00
• Premises Costs:  $0.00
• SEO Fees:  $6,960.00
• Transportation Expenses:  $1,125.00
• Total Expenses:  $50,932.81

Net Operating Income:  $41,495.96

Corporate 2

Income:  $387,234.60

Cost of Goods Sold:  $229,132.61

Gross Profit:  $158,101.99

Expenses

• Academy Training Expense:  $0.00
• Advertising and Marketing:  $12,557.09
• Bank Charges and Fees:  $14,592.31
• Conference/Contractors:  $200.00
• Franchise Fees:  $49,725.76
• Insurance:  $0.00
• Management Fees:  $3,749.98
• Office Expenses:  $396.88
• Payroll Expenses:  $120.00
• Premises Costs:  $200.00
• SEO Fees:  $6,960.00
• Transportation Expenses:  $0.00
• Total Expenses:  $88,502.02

Net Operating Income:  $69,599.97

Corporate 3

Income:  $82,540.00

Cost of Goods Sold:  $39,480.15

Gross Profit:  $43,059.85

Expenses

• Academy Training Expense:  $0.00
• Advertising and Marketing:  $3,724.11
• Bank Charges and Fees:  $2,997.33
• Conference/Contractors:  $1,751.91
• Franchise Fees:  $12,529.10
• Insurance:  $745.00
• Management Fees:  $3,749.98
• Office Expenses:  $0.00
• Payroll Expenses:  $2,944.68
• Premises Costs:  $903.44
• SEO Fees:  $6,960.00
• Transportation Expenses:  $501.31
• Total Expenses:  $36,806.86

Net Operating Income:  $6,252.99

Average (Calculated by Franchise Chatter

Income:  $207,068.20 (100.0%)

Cost of Goods Sold:  $109,204.66 (52.7%)

Gross Profit:  $97,863.54 (47.3%)

Expenses

• Academy Training Expense:  $833.33 (0.4%)
• Advertising and Marketing:  $8,372.11 (4.0%)
• Bank Charges and Fees:  $7,026.10 (3.4%)
• Conference/Contractors:  $650.64 (0.3%)
• Franchise Fees:  $28,093.41 (13.6%)
• Insurance:  $248.33 (0.1%)
• Management Fees:  $2,499.99 (1.2%)
• Office Expenses:  $133.96 (0.1%)
• Payroll Expenses:  $1,021.56 (0.5%)
• Premises Costs:  $367.81 (0.2%)
• SEO Fees:  $6,960.00 (3.4%)
• Transportation Expenses:  $542.10 (0.3%)
• Total Expenses:  $58,747.23 (28.4%)

Net Operating Income:  $39,116.31 (18.9%)

• Corporate 1 operated in 2023 with 2 trainers for the full 12 months.

• Corporate 2 operated in 2023 with 3 trainers and one manager for the full 12 months. The Dog Wizard removed $12,765.00 in expenses for this outlet because these expenses were incurred in defending trainers in litigation that occurred in 2023. This expense was removed because it is not typical of a franchised outlet and removing the expense allows for a more accurate representation of an outlet’s potential year-to-year expenses.

• Corporate 3 operated in 2023 with 1 trainer for the full 12 months.

Part 4 – System Wide Revenue by Service

• Total Revenue:  $11,796,257
• Number of Outlets Providing Services:  30
• Total Clients:  6,328
• Average Revenue Per Service:  $1,864
• Median Revenue Per Service:  $1,350
• Low Revenue Per Service:  $42
• Median Revenue Per Service:  $6,840
• Number and Percentage of Outlets that Achieved or Surpassed Average:  12 / 40%

• Total number of outlets providing services accounts for 5 locations that operate as contiguous territories and report as one location. The figures above were averaged against 30 locations as opposed to breaking the figures down by territories.

• The company-owned outlets disclosed differ from franchised in that the company-owned outlets pay a management fee to The Dog Wizard. However, they incur the same expenses royalty and advertising expenses required of franchisees. The company-owned outlets also have territories with populations that total more than the standard single territory offered.

• Further, because the three company-owned outlets are mobile outlets, the expenses will differ from outlets that operate through facilities or storefronts. The company also owns the vehicle assets and contracts with the trainers operating the location are structured to incentivize the care and maintenance of the vehicles or they provide their own vehicles.

• Corporate 1 has been in operation for 1 year and 2 months, Corporate 2 has been in operation for 1 year 6 months, and Corporate 3 has been in operation for 3 years.

• Some outlets have earned this amount. Your individual results may differ. There is no assurance you will earn as much.

Section VI – The Dog Wizard Franchise Ratios, Comparables, Computations, and Analyses (Exclusive Content for Platinum Subscribers) ⬇️