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

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

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

Section III – Number of franchised and company-owned Central Bark 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 Central Bark franchise opportunity

Section V – Presentation and analysis of Central Bark’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, highest, and lowest gross sales; and median, high, and low gross sales for the top, middle, and low tercile of the 35 franchised Central Bark facilities that had operated a full year as of December 31, 2023

• 2023 average, median, highest, and lowest EBITDA; and average and median profit percentage for the top, middle, and low tercile of the 35 franchised Central Bark facilities that had operated a full year as of December 31, 2023

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

Section I – Central Bark Franchise Costs

• Initial Franchise Fee:  $49,000
• Leasehold Improvements:  $280,000 to $575,000
• Architectural Fee:  $15,000 to $25,000
• Equipment, Fixtures:  $55,000 to $130,000
• Store Signage:  $6,500 to $12,000
• Security Deposits:  $5,000 to $10,000
• Opening Inventory:  $3,000 to $8,000
• Initial Launch Advertising:  $26,000
• Pre-Opening Promotional Package:  $3,500 to $6,500
• Pre-Opening Training Travel and Lodging Expense:  $2,000 to $5,000
• Training Materials:  $1,500
• Miscellaneous (Legal, Permits):  $5,000 to $10,000
• Supplies:  $13,974 to $24,974
• Insurance:  $3,000 to $8,000
• Computer Hardware and Software:  $5,000 to $8,000
• Microsite Fees:  $4,000
• Lease Assignment Agreement Review Fee:  $0 to $2,500
• Rent:  $5,000 to $8,000
• Additional Funds (3 Months):  $40,000 to $110,000
• Vehicle:  $0 to $22,000
• Total Estimated Central Bark Franchise Costs:  $522,474 to $1,039,974

Section II – Central Bark’s Initial Franchise Fee, Royalty Fee, and Marketing Fee

• Initial Franchise Fee:  $49,000
• Royalty Fee:  6% of Gross Sales
• Marketing Fund:  the greater of (i) 2% of Gross Sales or (ii) $500
• Local Advertising Cooperative (“LAC”) Contribution:  an amount determined by the members of the LAC, which the franchisor currently anticipates will not exceed 2% of Gross Sales

Section III – Number of Franchised and Company-Owned Central Bark Outlets

Franchised

2021

• Outlets at the Start of the Year:  31
• Outlets at the End of the Year:  33
• Net Change:  +2

2022

• Outlets at the Start of the Year:  33
• Outlets at the End of the Year:  35
• Net Change:  +2

2023

• Outlets at the Start of the Year:  35
• Outlets at the End of the Year:  38
• Net Change:  +3

Company-Owned

2021

• Outlets at the Start of the Year:  1
• Outlets at the End of the Year:  0
• Net Change:  -1

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:  0
• Net Change:  0

Section IV – News Updates on the Central Bark Franchise

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

Part 1 – Average Gross Sales for Central Bark Facilities

• This Part 1 includes information regarding Gross Sales of Central Bark facilities during Central Bark’s 2023 fiscal year, which began on January 1, 2023 and ended on December 31, 2023. As of the fiscal year beginning on January 1, 2023 there were 35 franchised Central Bark facilities open and operating and are included in the data below (the “Sales Group”).

• The Franchise Agreement defines “Gross Sales” as the total revenues for all services rendered and for the sale of all merchandise including, but not limited to, sales from the Central Bark facility, kiosk, cart, vending machines, catalogues, cable television, any Online Presence or mail order, sold to or for your customers whether for cash or credit, after deducting credits for return, repair or replacement goods, all allowances expressly granted to such customers (such as trade and quantity discounts), excise taxes, sales and/or use and equivalent taxes paid by you, provided that such credits and taxes shall first have been included in the computation of Gross Sales for the same or prior periods.

• Any gift certificate and/or gift card payments shall be included in Gross Sales in accordance with Central Bark’s then-current guidelines for calculating Gross Sales; provided that such gift card and/or gift certificate payments shall only be included in Gross Sales, at Central Bark’s option, as either (i) the gross amount of such payments when such gift certificates or gift cards are redeemed from the Franchised Business or (ii) the face value of such gift certificates or gift cards at the time of the sale of such gift card or gift certificate and not upon redemption.

Gross Sales of Sales Group During 2023 Fiscal Year

• Average Gross Sales:  $767,776
• Number and Percentage of Central Bark Facilities Exceeding Average:  16 (46%)
• High Gross Sales:  $1,094,861
• Median Gross Sales:  $733,841
• Low Gross Sales:  $464,863

Top Tercile

• Low Gross Sales:  $926,075
• High Gross Sales:  $1,480,971
• Number of Central Bark Facilities:  11
• Median Gross Sales:  $1,094,861
• Number and Percentage of Facilities That Met or Exceeded the Average Gross Sales:  5 (45.5%)

Middie Tercile

• Low Gross Sales:  $635,756
• High Gross Sales:  $922,427
• Number of Central Bark Facilities:  12
• Median Gross Sales:  $733,841
• Number and Percentage of Facilities That Met or Exceeded the Average Gross Sales:  6 (50%)

Low Tercile

• Low Gross Sales:  $208,014
• High Gross Sales:  $630,067
• Number of Central Bark Facilities:  12
• Median Gross Sales:  $464,863
• Number and Percentage of Facilities That Met or Exceeded the Average Gross Sales:  6 (50%)

Part 2 – Average Profit for Central Bark Facilities

• This Part 2 includes information regarding average Profit of the Sales Group during the 2023 fiscal year. The Sales Group and fiscal year is defined in the same manner as Part 1 above.

• For purposes of this Part 2, “Profit” means the Adjusted EBITDA of each Central Bark facility.

• Adjusted EBITDA is calculated as follows: the earnings before interest, income taxes, depreciation, and amortization of each Central Bark facility as a percentage of Gross Sales, as reported to Central Bark by its franchisees.

Profit of Sales Group During 2023 Fiscal Year

• Average EBITDA:  $110,991
• Number and Percentage of Central Bark Facilities Exceeding Average:  19 (54%)
• High EBITDA:  $215,772
• Median EBITDA:  $114,643
• Low EBITDA:  $16,657

Top Tercile

• Average Profit Percentage:  25.78%
• Number of Central Bark Facilities:  11
• Median Profit:  $215,772
• Number and Percentage of Facilities That Met or Exceeded the Average Gross Profit:  6 (55%)

Middle Tercile

• Average Profit Percentage:  15.72%
• Number of Central Bark Facilities:  12
• Median Profit:  $114,643
• Number and Percentage of Facilities That Met or Exceeded the Average Gross Profit:  5 (42%)

High Tercile

• Average Profit Percentage:  5.17%
• Number of Central Bark Facilities:  12
• Median Profit:  $16,657
• Number and Percentage of Facilities That Met or Exceeded the Average Gross Profit:  8 (75%)

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

Section VI – Central Bark Franchise Ratios, Comparables, Computations, and Analyses (Exclusive Content for Platinum Subscribers) ⬇️