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

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

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

Section III – Number of franchised and company-owned Camp Bow Wow 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 Camp Bow Wow franchise opportunity

Section V – Presentation and analysis of Camp Bow Wow’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, median, high, and low gross revenue for the top 25%, bottom 25%, and all 202 Camp Bow Wow franchises that were open and operating for more than 12 months as of December 31, 2023 and submitted their revenue data to Camp Bow Wow as required

• 2023 average, median, high, and low annual occupancy expense and annual labor expense percentage, and average and median owner’s discretionary income for the top 25%, bottom 25%, and all 202 Camp Bow Wow franchises that were open and operating for more than 12 months as of December 31, 2023 and submitted their expense data to Camp Bow Wow as required

• 2019, 2020, 2021, 2022, and 2023 consolidated gross revenue for camp services, dog training services, retail, and all other approved products and services for all Camp Bow Wow locations that were open and operating for any length of time from 2019-2023 calendar years

Section VI – Key ratios, comparables, computations, and analyses for the Camp Bow Wow franchise opportunity (exclusive content for Platinum subscribers)

Section I – Camp Bow Wow Franchise Costs

• Initial Franchise Fee:  $50,000
• Travel Costs for All Initial Training:  $0 to $8,000 per person
• Real Estate Improvements:  $674,000 to $950,000
• Equipment, Supplies, and Opening Inventory:  $50,000 to $100,000
• Dog Cabins and Interior Fencing:  $40,000 to $200,000
• Signage:  $5,000 to $10,000
• Webcam System:  $8,000 to $20,000
• Camp Payroll:  $8,000 to $24,000
• Rent and Utilities:  $5,000 to $50,000
• Plans and Permits:  $19,000 to $52,000
• Professional Services:  $13,000 to $50,000
• Camp Launch Advertising:  $25,000
• Financing Fees:  $2,000 to $25,000
• Additional Funds for First 12 Months of Operations:  $150,000
• Project Management Fee:  $5,000 to $5,500
• Total Estimated Camp Bow Wow Franchise Costs:  $1,034,000 to $1,769,500

Section II – Camp Bow Wow’s Initial Franchise Fee, Royalty Fee, and Marketing Fee

• Initial Franchise Fee:  $50,000
• Royalty Fee:  the greater 7% of Net Revenue or the Minimum Monthly Royalty
• Advertising Fund Fee:  1% of Net Revenue, up to a maximum of 3% of Net Revenue
• Local Advertising Expense:  $2,500 per month
• Regional Advertising Co-operative:  the lesser of 3% of Net Revenue or the $2,500 Local Advertising Expense

Section III – Number of Franchised and Company-Owned Camp Bow Wow Outlets

U.S. Franchised

2021

• Outlets at the Start of the Year:  174
• Outlets at the End of the Year:  191
• Net Change:  +17

2022

• Outlets at the Start of the Year:  191
• Outlets at the End of the Year:  199
• Net Change:  +8

2023

• Outlets at the Start of the Year:  199
• Outlets at the End of the Year:  212
• Net Change:  +13

Company-Owned

2021

• Outlets at the Start of the Year:  11
• Outlets at the End of the Year:  7
• Net Change:  -4

2022

• Outlets at the Start of the Year:  7
• Outlets at the End of the Year:  7
• Net Change:  0

2023

• Outlets at the Start of the Year:  7
• Outlets at the End of the Year:  3
• Net Change:  -4

Section IV – News Updates on the Camp Bow Wow Franchise

Section V – Financial Performance Representations (Average Revenues and/or Profits) for the Camp Bow Wow Franchise (Item 19, 2024 FDD)

• Except for Part 3 below, the franchisor does not include information from franchisor-owned outlets in this Item 19.

• Unless otherwise stated below, all data for franchisee-owned Camp Bow Wow Franchises has been reported to the franchisor by the franchise owner of the Camp Bow Wow Franchise.

• The franchisor has not audited this information nor independently verified any of the information included in this Item 19. All data in this Item 19 is historical data.

• None of the tables in this Item 19 include information regarding the 11 new Franchised Camps that were open less than 12 months as of December 31, 2023, and the one Franchised Camp that closed during the year (that Camp had been open more than 12 months but was not open for the full 12-month period as of December 31, 2023).

Part 1 – Annual Gross Revenue

• “Gross Revenue,” for purposes of this Item 19, means the total annual gross revenue for Camp Services, Dog Training Services, and any other Approved Products and Services as reported by franchisees to Camp Bow Wow through its designated financial reporting software, which revenue may be reported on cash basis or accrual basis accounting. Gross Revenue differs from Net Revenue (as defined in Item 6) in that Net Revenue is recorded using cash basis accounting only.

• The table below shows the Gross Revenue from January 1, 2023 to December 31, 2023 (the “Measurement Period”) for the 202 franchises that were open and operating for more than 12 months as of December 31, 2023 (“Revenue-Reporting Franchises”).

• Not all Revenue-Reporting Franchises offer the same set of services. Some provide only Camp Services, while some also provide Dog Training Services, retail, and/or in-home services.

• The length of time that these Revenue-Reporting Franchises have been operating varies widely, and time in operation materially affects the Gross Revenue of Camp Bow Wow Franchises. The oldest Camp Bow Wow Franchise has been operating continuously for 277 months as of December 31, 2023. The average time in operation for Revenue-Reporting Franchises is 120 months, and the median is 106 months.

All Revenue-Reporting Franchises

• Average Annual Gross Revenue:  $1,039,331
• Median Annual Gross Revenue:  $984,343
• High Annual Gross Revenue:  $2,477,566
• Low Annual Gross Revenue:  $371,697

Top 25% Revenue-Reporting Franchises

• Average Annual Gross Revenue:  $1,498,476
• Median Annual Gross Revenue:  $1,387,044
• High Annual Gross Revenue:  $2,477,566
• Low Annual Gross Revenue:  $1,226,288

Bottom 25% Revenue-Reporting Franchises

• Average Annual Gross Revenue:  $648,984
• Median Annual Gross Revenue:  $667,090
• High Annual Gross Revenue:  $820,760
• Low Annual Gross Revenue:  $371,697

• The 2023 Annual Gross Revenue tables are based on data that was reported to Camp Bow Wow by the franchise owners for 202 Revenue-Reporting Franchises.

• For 2023, 98 (49%) Camp Bow Wow Franchises achieved at least $1,000,000 in Gross Revenue.

• For 2023, of the 202 Revenue-Reporting Franchises, 90 (45%) exceeded the Average Annual Gross Revenue of $1,039,331 and 101 (50%) exceeded the Median Annual Gross Revenue of $984,343.

• For 2023, the Top 25% of Revenue-Reporting Franchises consists of 51 Camps. Of those, 16 (31%) exceeded the Average Annual Gross Revenue of $1,498,476 and 25 (49%) exceeded the Median Annual Gross Revenue of $1,387,044.

• For 2023, the Bottom 25% of Revenue-Reporting Franchises consists of 51 Camps. Of those, 29 (57%) exceeded the Average Annual Gross Revenue of $648,984 and 25 (49%) exceeded the Median Annual Gross Revenue of $667,090.

Part 2 – Select Expenses

• The tables below show selected expense data during the Measurement Period for 202 Camp Bow Wow Franchises that were open and operating for more than 12 months as of December 31, 2023 (“Expense-Reporting Franchises”).

• Not all Expense-Reporting Franchises offer the same set of services. Some provide only Camp Services, while some also provide Dog Training Services, retail, and/or in-home services.

• Expense-Reporting Franchises have an average Camp Site size of approximately 7,938 square feet and are generally located in light industrial or commercial areas.

A.  Annual Occupancy Expense

• The “Annual Occupancy Expense” includes the following costs associated with occupying the Camp Site during the Measurement Period: rent, utilities, and common area maintenance charges, as well as other charges imposed by and passed on to the tenant by the landlord under the Lease (which may include property tax, insurance, and landlord operating expenses, commonly referred to as “NNN” or “Triple Net”).

• Some Expense-Reporting Franchises own their real estate, so their Annual Occupancy Expenses may be skewed for that reason.

All Expense-Reporting Franchises

• Average Annual Occupancy Expense:  $158,364
• Median Annual Occupancy Expense:  $148,566
• High Annual Occupancy Expense:  $454,635
• Low Annual Occupancy Expense:  $28,768

Top 25% Expense-Reporting Franchises

• Average Annual Occupancy Expense:  $200,150
• Median Annual Occupancy Expense:  $196,588
• High Annual Occupancy Expense:  $454,635
• Low Annual Occupancy Expense:  $40,553

Bottom 25% Expense-Reporting Franchises

• Average Annual Occupancy Expense:  $125,321
• Median Annual Occupancy Expense:  $120,387
• High Annual Occupancy Expense:  $216,979
• Low Annual Occupancy Expense:  $28,768

• The Annual Occupancy Expense for Expense-Reporting Franchises averaged $19.95 per square foot (with a median of $19.00 per square foot) during the Measurement Period. 90 (45.0%) of the Expense Reporting Franchisees exceeded the average of $19.95 per square foot.

• For 2023, of the 202 Expense-Reporting Franchises, 91 (45%) exceeded the Average Annual Occupancy Expense of $158,364 and 107 (53%) exceeded the Median Annual Occupancy Expense of $148,566.

• For 2023, the Top 25% of Expense-Reporting Franchises consists of 51 Camps. Of those, 24 (47%) exceeded the Average Annual Occupancy Expense of $200,150 and 25 (49%) exceeded the Median Annual Occupancy Expense of $196,588.

• For 2023, the Bottom 25% of Expense-Reporting Franchises consists of 51 Camps. Of those, 24 (47%) exceeded the Average Annual Occupancy Expense of $125,321 and 25 (49%) exceeded the Median Annual Occupancy Expense of $120,387.

B.  Annual Labor Expense

• The “Annual Labor Expense” includes the following costs associated with labor during the Measurement Period: wages, withholding taxes, and government-mandated employee benefits for non-managerial full-time and part-time workers.

• The Annual Labor Expense is intended to exclude salary and draws paid to managers and franchisee owners, but since the franchisor does not audit the information provided by its franchisees, it is possible that some franchisees may have mistakenly reported manager and/or owners’ salaries together with the Annual Labor Expense.

All Expense-Reporting Franchises

• Average Annual Labor Expense:  42%
• Median Annual Labor Expense:  41%
• High Annual Labor Expense:  82%
• Low Annual Labor Expense:  20%

Top 25% Expense-Reporting Franchises

• Average Annual Labor Expense:  41%
• Median Annual Labor Expense:  40%
• High Annual Labor Expense:  63%
• Low Annual Labor Expense:  25%

Bottom 25% Expense-Reporting Franchises

• Average Annual Labor Expense:  43%
• Median Annual Labor Expense:  43%
• High Annual Labor Expense:  79%
• Low Annual Labor Expense:  20%

• The “Annual Labor Expense Percentage” is calculated by dividing the Annual Labor Expense by Gross Revenue for each respective Expense-Reporting Franchise, adding the percentages for all Expense-Reporting Franchises, and dividing the total by the number of Expense-Reporting Franchises.

• For 2023, of the 202 Expense-Reporting Franchises, 91 (45%) exceeded the Average Annual Labor Expense of 42% and 101 (50%) exceeded the Median Annual Labor Expense of 41%.

• For 2023, the Top 25% of Expense-Reporting Franchises consists of 51 Camps. Of those, 22 (43%) exceeded the Average Annual Labor Expense of 41% and 25 (49%) exceeded the Median Annual Labor Expense of 40%.

• For 2023, the Bottom 25% of Expense-Reporting Franchises consists of 51 Camps. Of those, 25 (49%) exceeded the Average Annual Labor Expense of 43% and 25 (49%) exceeded the Median Annual Labor Expense of 43%.

C.  Annual Owner’s Discretionary Income

• “Annual Owner’s Discretionary Income” means EBITDA (reported Gross Revenue less total reported expenses, plus interest, tax, depreciation, and amortization expenses), plus any reported owner’s salary which may be included in the calculation of annual earnings as reported by the franchisee.

• Reported expenses include Annual Occupancy Expenses and Annual Labor Expenses described above plus all other reported expenses which may include marketing, manager salary, merchant processing fees, royalties, building repairs and maintenance, supplies, and other expenses.

• Not all Camp Bow Wow franchises report owner’s salary amounts and those amounts may be included as part of Annual Labor Expenses, manager salary, or included in some other expense category.

All Expense-Reporting Franchises

• Average Annual Owner’s Discretionary Income:  $175,047 (17%)
• Median Annual Owner’s Discretionary Income:  $142,297 (14%)

Top 25% Expense-Reporting Franchises

• Average Annual Owner’s Discretionary Income:  $400,440 (30%)
• Median Annual Owner’s Discretionary Income:  $338,296 (25%)

Bottom 25% Expense-Reporting Franchises

• Average Annual Owner’s Discretionary Income:  $(10,276) (-1%)
• Median Annual Owner’s Discretionary Income:  $8,928 (1%)

• Average percentages in this chart represent the average percent of revenue, and are calculated by dividing Owner’s Discretionary Income by annual Gross Revenue for each Expense-Reporting Franchise, adding the percentages for all Expense-Reporting Franchises, and dividing the total by the number of Expense-Reporting Franchises.

• Median percentages in this chart represent the median percent of revenue, and are calculated by dividing Owner’s Discretionary Income by annual Gross Revenue for each Expense-Reporting Franchise and taking the middle value of all Expense-Reporting Franchises.

• For 2023, of the 202 Expense-Reporting Franchises, 90 (45%) exceeded the Average Annual Owner’s Discretionary Income of $175,047 and 101 (50%) exceeded the Median Annual Owner’s Discretionary Income of $142,297.

• For 2023, the Top 25% of Expense-Reporting Franchises consists of 51 Camps. Of those, 10 (20%) exceeded the Average Annual Owner’s Discretionary Income of $400,440 and 12 (24%) exceeded the Median Annual Owner’s Discretionary Income of $338,296.

• For 2023, the Bottom 25% of Expense-Reporting Franchises consists of 51 Camps. Of those, 42 (82%) exceeded the Average Annual Owner’s Discretionary Income of $ -10,276 and 25 (78%) exceeded the Median Annual Owner’s Discretionary Income of $8,928.

Part 3 – System-Wide Gross Revenue

• Part 3 sets forth the aggregate Gross Revenue for all Camp Bow Wow locations that were open and operating for any length of time for the 2019-2023 calendar years, including both franchised and corporate-owned locations as well as those locations that may have closed during a particular year.

2023 (unaudited)

• Consolidated Gross Revenue for Camp Services, Dog Training Services, Retail, and All Other Approved Products and Services:  $212,054,559
• Number of Franchisee/Franchisor Locations:  213/4
• % Increase (or Decrease) in Gross Revenue from Year to Year (Unaudited):  6%

2022 (unaudited)

• Consolidated Gross Revenue for Camp Services, Dog Training Services, Retail, and All Other Approved Products and Services:  $198,380,309
• Number of Franchisee/Franchisor Locations:  204/7
• % Increase (or Decrease) in Gross Revenue from Year to Year (Unaudited):  21%

2021 (unaudited)

• Consolidated Gross Revenue for Camp Services, Dog Training Services, Retail, and All Other Approved Products and Services:  $163,312,462
• Number of Franchisee/Franchisor Locations:  194/7
• % Increase (or Decrease) in Gross Revenue from Year to Year (Unaudited):  71%

2020 (unaudited)

• Consolidated Gross Revenue for Camp Services, Dog Training Services, Retail, and All Other Approved Products and Services:  $95,433,113
• Number of Franchisee/Franchisor Locations:  175/10
• % Increase (or Decrease) in Gross Revenue from Year to Year (Unaudited):  -34%

2019 (unaudited)

• Consolidated Gross Revenue for Camp Services, Dog Training Services, Retail, and All Other Approved Products and Services:  $144,515,606
• Number of Franchisee/Franchisor Locations:  163/11
• % Increase (or Decrease) in Gross Revenue from Year to Year (Unaudited):  12%

Section VI – Camp Bow Wow Franchise Ratios, Comparables, Computations, and Analyses (Exclusive Content for Platinum Subscribers) ⬇️