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

Section I – Estimated initial investment (franchise costs) for a Wag N’ Wash franchise, based on Item 7 of the company’s 2024 FDD

Section II – Initial franchise fee, royalty fee, and marketing fee for a Wag N’ Wash franchise, based on Items 5 and 6 of the company’s 2024 FDD

Section III – Number of franchised and company-owned Wag N’ Wash 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 Wag N’ Wash franchise opportunity

Section V – Presentation and analysis of Wag N’ Wash’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 weekly gross sales, annual gross sales, annual gross margin %, annual EBITDA, annual rent, annual royalty and NAF fee expense, and annual labor expense for the 10 reporting franchised Wag N’ Wash stores that were open and began operating prior to January 1, 2023

Section VI – Key ratios, comparables, computations, and analyses for the Wag N’ Wash franchise opportunity (exclusive content for Platinum subscribers)

Section I – Wag N’ Wash Franchise Costs

• Initial Franchise Fee:  $49,900
• Inventory:  $100,000 to $150,000
• Equipment:  $155,000 to $250,000
• POS Equipment Installation:  $3,150 to $3,600
• Full Store Preprinted Shelf Labels for Product:  $270 to $300
• Training:  $4,000 to $8,000
• Advertising Grand Opening:  $20,000
• Insurance:  $2,000 to $7,000
• Leasehold Improvements:  $50,000 to $587,400
• Prepaid Rent/Security Deposit:  $0 to $16,700
• Legal & Accounting:  $4,000 to $10,000
• Pre-Opening Labor:  $10,000 to $25,000
• Set-Up Fee:  $15,000
• Additional Funds – Initial Period (6 Months):  $100,000 to $175,000
• Total Estimated Wag N’ Wash Franchise Costs:  $513,320 to $1,317,900

Section II – Wag N’ Wash’s Initial Franchise Fee, Royalty Fee, and Marketing Fee

• Initial Franchise Fee:  $49,900

• Royalty Fee:  2% of monthly Gross Sales for first 12 months of operation; 3% of monthly Gross Sales for months 13-24 of operation; 4% of monthly Gross Sales after first 24 months of operation

• Advertising:  Stores in the first 12 months of operation will contribute a fixed dollar amount of (a) $3,350 per month in Local Marketing Spend (the “LMS”) as directed by Wag N’ Wash and administered by a third-party System Supplier and (b) $1,000 to the National Advertising Fund (the “NAF”) which Wag N’ Wash has established for the common benefit of System franchisees.

• For all subsequent months after the first 12 months of operation, the required monthly advertising contribution shall be the lesser of 3.5% of Gross Sales or $8,333.00 (“the Advertising Contribution Monthly Cap”) with (a) 2/3 of that amount directed to the LMS, as directed by Wag N’ Wash and administered by a third-party vendor and (b) 1/3 of that amount to the NAF.

• A per Store maximum annual total contribution (LMS and NAF) of $100,000 applies to the required advertising contribution (the “Advertising Contribution Annual Cap”).

Section III – Number of Franchised and Company-Owned Wag N’ Wash Outlets

Franchised

2021

• Outlets at the Start of the Year:  12
• Outlets at the End of the Year:  10
• Net Change:  -2

2022

• Outlets at the Start of the Year:  10
• Outlets at the End of the Year:  14
• Net Change:  +4

2023

• Outlets at the Start of the Year:  14
• Outlets at the End of the Year:  18
• Net Change:  +4

Company-Owned

2021

• Outlets at the Start of the Year:  5
• Outlets at the End of the Year:  5
• Net Change:  0

2022

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

2023

• Outlets at the Start of the Year:  0
• Outlets at the End of the Year:  6
• Net Change:  +6

Section IV – News Updates on the Wag N’ Wash Franchise

Section V – Financial Performance Representations (Average Revenues and/or Profits) for the Wag N’ Wash Franchise (Item 19, 2024 FDD)

• This Item sets forth historical gross sales information for franchised outlets for the measurement period of January 1, 2023 to December 30, 2023 (the “Measurement Period”), which was provided to Wag N’ Wash by its franchised Stores.

• During the Measurement Period, there were 18 franchised outlets outlets and 6 affiliate-owned outlets, which is a total of 24 outlets.

• Specifically, this Item sets forth average weekly and annual gross sales data, gross margins, earnings before interest, taxes, depreciation, and amortization (“EBITDA”), rent expenses, royalty fee expenses, and labor expenses for the 10 reporting franchised Stores that were open and began operating prior to January 1, 2023 (the “Reporting Stores”).

• Excluded from this Item are 2 stores that were in operation for the full Measurement Period, which were the System’s highest and lowest grossing stores, as size and certain expense and other variables, such as rent, are not representative of the System as a whole, nor substantially similar to the franchise offered in the disclosure document. At the end of the Measurement Period, there were 18 total franchised outlets.

Reporting Stores’ Gross Sales, Gross Margins, EBITDA, Rent, Royalty Fee, and Labor Expenses (January 1, 2023 to December 31, 2023)

Reporting Franchised Stores

• Store Count:  10
• Average Weekly Gross Sales:  $26,413
• Average Annual Gross Sales:  $1,373,498
• Average Gross Margin %:  65.8%
• Average EBITDA:  $76,054 (5.5%)
• Average Rent:  $120,540 (8.8%)
• Average Royalty and NAF Fee Expense:  $55,246 (4.0%)
• Average Labor Expense:  $506,684 (36.9%)

• For purposes of this Item 19, Gross Sales is defined as the total revenue earned by a Store.

• The “Annual Gross Margin Percentage” for each Reporting Store was calculated by dividing each Reporting Store’s “Gross Profit” by their Annual Gross Sales. Gross Profit is calculated by subtracting “Cost of Sales” from Annual Gross Sales. “Cost of Sales” includes the cost of acquiring merchandise including all pet food, pet supplies, and products required in connection with pet grooming and bathing services, net of discounts, rebates, allowances, and freight charges.

• “Annual EBITDA” for each Reporting Store is defined as the Annual Gross Sales for each Reporting Store less Cost of Sales and “Store Operating Expenses”. Store Operating Expenses includes all expenses required to operate the Store, including wages, payroll taxes and benefits, occupancy costs, supplies, credit card fees, advertising, royalties, system advertising fees, and other costs, but excludes start-up expenses, depreciation, amortization, interest, and income taxes.

• “Annual Rent” for each Reporting Store includes all expenses required to occupy the Store, including base gross rent, real estate taxes paid to the landlord, building insurance paid to the landlord, and common area maintenance paid to the landlord.

• “Annual Royalties” for each Reporting Store includes all fees paid to Wag N’ Wash as royalties.

• “Annual Labor Expense” for each Reporting Store includes all direct labor expenses required to operate the Store, including wages, payroll taxes, and benefits, and specifically including the salary of the Store’s manager and other supervisory personnel. It does not include salary, distributions or “Interest” taken by ownership, or salary paid to district managers unless those individuals spend at least 70% of their time directly operating an individual Store.

• Your revenues will vary depending upon the location of your Store. This analysis does not contain information concerning all of your potential operating costs.

• The figures above do not include certain costs associated with the establishment and operation of a Store, including initial franchise fees, build-out, and equipment costs. The above figures also exclude finance charges.

• Interest expense, interest income, depreciation, amortization, and other income or expenses will vary substantially from Store to Store, depending on the amount and kind of financing you obtain to establish your Store, as well as your credit history.

• Some Outlets have sold this amount. There is no assurance you will do as well. If you rely upon Wag N’ Wash’s figures, you must accept the risk of not doing as well.

Section VI – Wag N’ Wash Franchise Ratios, Comparables, Computations, and Analyses (Exclusive Content for Platinum Subscribers) ⬇️