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

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

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

Section III – Number of franchised and company-owned The Camp Transformation Center 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 Transformation Center franchise opportunity

Section V – Presentation and analysis of The Camp Transformation Center’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 for the top 10%, middle 80%, bottom 10%, and all 90 franchised The Camp Transformation Centers that were open and operating for all of 2023

• 2023 average and median gross sales for the 90 franchised, 3 company-owned, and all 93 The Camp Transformation Centers that were open and operating for all of 2023

• 2023 average gross sales, cost of goods sold, gross profit, payroll, rent & utilities, repairs & maintenance, advertising & marketing, merchant fees, other expenses, total expenses, net operating income, imputed royalty, imputed payroll processing expense, imputed insurance expenses, and net operating income after adjustments for the 3 company-owned The Camp Transformation Centers that were open and operating for all of 2023

• 2023 median gross sales, gross profit, and total expenses for the 3 company-owned The Camp Transformation Centers that were open and operating for all of 2023

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

Section I – The Camp Transformation Center Franchise Costs

• Initial Franchise Fee:  $49,500
• Travel and Living Expenses for Training:  $2,000 to $5,000
• Rent and Lease Deposit:  $21,000 to $44,000
• Construction Costs:  $52,000 to $70,000
• Architect and Materials:  $92,000 to $131,000
• Equipment Pack:  $61,000
• Initial Inventory:  $3,000 to $5,000
• Technology Fee – Initial Payment:  $500
• Grand Opening Marketing:  $5,000
• Video Training:  $350
• Permits and Licenses:  $3,000 to $10,000
• Signage:  $6,000 to $8,000
• Insurance, Miscellaneous Deposits, and Prepaid Expenses:  $6,000 to $10,000
• Additional Funds for 6 Months:  $50,000 to $75,000
• Total Estimated The Camp Transformation Center Franchise Costs:  $351,350 to $474,350

Section II – The Camp Transformation Center’s Initial Franchise Fee, Royalty Fee, and Marketing Fee

• Initial Franchise Fee:  $49,500
• Franchise Royalty Fee:  6% of Gross Sales
• Marketing Fund:  none currently; up to 2.5% of Gross Sales, when Fund begins to operate
• Local Marketing Commitment:  none currently; greater of 2% of Gross Sales or $3,000 per month, if the franchisor makes it a requirement
• Digital Marketing Management: currently, $1,036 per month to Social Inbound Marketing

Section III – Number of Franchised and Company-Owned The Camp Transformation Center Outlets

Franchised

2021

• Outlets at the Start of the Year:  96
• Outlets at the End of the Year:  101
• Net Change:  +5

2022

• Outlets at the Start of the Year:  101
• Outlets at the End of the Year:  104
• Net Change:  +3

2023

• Outlets at the Start of the Year:  104
• Outlets at the End of the Year:  97
• Net Change:  -7

Company-Owned

2021

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

2022

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

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 Camp Transformation Center Franchise

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

• In Parts 1 and 2 below, The Camp Transformation Center presents certain historical information for the financial performance of franchised and company-owned Centers in 2023.

• The Camp Transformation Center had 97 franchised Centers and 3 company-owned Centers open at the end of 2023.

Part 1 – 2023 Annual Gross Sales of Franchised Centers

Top 10% (9 Centers)

• Highest Gross Sales:  $1,428,845
• Lowest Gross Sales:  $729,094
• Median Gross Sales:  $819,126
• Average Gross Sales:  $925,961
• Number and Percent Achieving Average:  3 of 9 (33.3%)

Middle 80% (72 Centers)

• Highest Gross Sales:  $714,508
• Lowest Gross Sales:  $254,424
• Median Gross Sales:  $472,349
• Average Gross Sales:  $454,965
• Number and Percent Achieving Average:  39 of 72 (54.2%)

Bottom 10% (9 Centers)

• Highest Gross Sales:  $249,055
• Lowest Gross Sales:  $121,763
• Median Gross Sales:  $222,520
• Average Gross Sales:  $202,050
• Number and Percent Achieving Average:  5 of 9 (55.6%)

All Franchised Centers (90 Centers)

• Highest Gross Sales:  $1,428,845
• Lowest Gross Sales:  $121,763
• Median Gross Sales:  $472,349
• Average Gross Sales:  $476,773
• Number and Percent Achieving Average:  43 of 90 (47.8%)

• Part 1 includes data for 90 franchised Centers. Part 1 excludes 7 franchised Centers that opened during 2023, 6 franchised Centers that permanently closed during 2023, 6 franchised Centers that were terminated during 2023, and 2 franchised Centers whose license expired and was not renewed during 2023.

• “Gross Sales” is defined in the Franchise Agreement as the total of all cash or other form of payment received for services, products and tangible property of every kind, performed or sold at, in, upon or related to your Center and from any vending, game or other type of machine or similar device located at your Center; and any and all other amounts which are received as compensation for any services rendered from your Center.

• “Gross Sales” does not include amounts collected and paid out for sales taxes levied on the sale of products and services or the proceeds from the sale of any furniture, fixtures, or equipment previously used at your Center.

Part 2 – 2023 Average Gross Sales

Franchised Centers

• Number of Centers in Group:  90
• Average Gross Sales:  $476,773
• Median Gross Sales:  $472,349

Company-Owned Centers

• Number of Centers in Group:  3
• Average Gross Sales:  $760,004
• Median Gross Sales:  $661,013

Above Centers Combined

• Number of Centers in Group:  93
• Average Gross Sales:  $485,910
• Median Gross Sales:  $476,120

• Part 2 includes data for the same 90 franchised Centers included in Part 1.

• “Company-Owned” refers to the Centers operated by The Camp Transformation Center’s affiliate, The Camp Bootcamp, Inc.

• Forty-three of the 90 franchised Centers, or 48%, exceeded the 2023 average Gross Sales for franchised Centers. The range of Gross Sales for franchised Centers was $121,763 to $1,428,845.

• One of the 3 company-owned Centers, or 33%, exceeded the 2023 average Gross Sales for company-owned Centers. The range of Gross Sales for company-owned Centers was $615,532 to $1,003,467.

Part 3 – 2023 Average Net Operating Income of Company-Owned Centers

• Part 3 includes data for the 3 company-owned Centers operated by The Camp Transformation Center’s affiliate, The
  Camp Bootcamp, Inc., in 2023.

Average

Gross Sales:  $760,004 (100.0%)

Less: Cost of Goods Sold:  $64,496 (8.5%)

Gross Profit:  $695,508 (91.5%)

Less: Expenses

• Payroll:  $293,593 (38.6%)
• Rent & Utilities:  $108,814 (14.3%)
• Repairs & Maintenance:  $24,761 (3.3%)
• Advertising & Marketing:  $37,039 (4.9%)
• Merchant Fees:  $26,803 (3.5%)
• Other Expenses:  $40,285 (5.3%)
• Total Expenses:  $531,295 (69.9%)

Net Operating Income:  $164,214 (21.6%)

Less: Adjustments to reflect material financial and operational differences between company-owned Centers and franchised Centers

• Imputed Royalty (at 6% of Gross Sales):  $45,600 (6.0%)
• Imputed Payroll Processing Expense:  $7,179 (0.9%)
• Imputed Insurance Expenses:  $3,022 (0.4%)

Net Operating Income After Adjustments:  $108,413 (14.3%)

Median

Gross Sales:  $661,013 (100.0%)

Gross Profit:  $574,976 (87.0%)

Total Expenses:  $492,437 (74.5%)

• The average Gross Sales figure shown is before customer returns and refunds. The range of Gross Sales was $615,532 to $1,003,467.

• COGS is the acquisition cost of supplements, apparel, and other merchandise sold in the Centers. Includes freight charges (shipping and delivery).

• The figure shown for Gross Profit is the actual average of Gross Profit for the 3 company-owned Centers. It differs from the figure that would be obtained by subtracting the Average COGS from the Average Gross Sales. The range of Gross Profit for the 3 Centers was $543,711 to $900,646.

• Payroll includes salaries, wages, and payroll taxes.

• Rent & Utilities includes rent, CAM charges, parking, equipment lease, water, gas and electric, telephone and internet, and trash disposal.

• Repairs & Maintenance includes office and building maintenance.

• Advertising & Marketing includes advertising, marketing, promotions, and texting services.

• Other Expenses include tech expenses; bank charges; dues and subscriptions; professional fees; meals and entertainment; licenses and permits; mileage and gas; office supplies; general office expenses; and uncategorized expenses.

• The range of Total Expenses was $479,552 to $652,500.

• The figure shown for Net Operating Income is the actual average of Net Operating Income for the 3 company-owned Centers. It differs from the figure that would be obtained by subtracting the Average Total Expenses from the Average Gross Profit.

• Imputed Royalty is the average amount of royalties the company-owned Centers would have paid if they had been subject to a 6% royalty obligation in 2023. No amount has been imputed for Marketing Fund contributions because The Camp Transformation Center does not currently require Marketing Fund contributions from franchisees.

• Insurance and Payroll Processing Expenses for the company-owned Centers are incurred at the headquarters level and not included in Center-level expenses. The adjustment is 1/3 of the total headquarters expense for insurance and payroll processing incurred for the 3 company-owned Centers.

• The financial performance representations in the tables are historical representations.

• The Camp Transformation Center obtained the data for the Centers in Parts 1 and 2 from the POS system of each Center. The Camp Transformation Center obtained the data for Part 3 from its accounting system.

• Some outlets have sold this amount. Your individual results may differ. There is no assurance that you’ll sell as much.

Section VI – The Camp Transformation Center Franchise Ratios, Comparables, Computations, and Analyses (Exclusive Content for Platinum Subscribers) ⬇️