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Highlights of Camp Bow Wow’s Item 19 Financial Performance Representations (2012 FDD) – Part 1
- D.O.G. Development LLC franchises the right to operate Camp Bow Wow businesses offering specialized pet care services through fixed store locations and mobile units, the retail sale of pet food and merchandise, and related services and products.
- The total investment necessary to begin operation of a Camp ranges from $455,000 to $620,000. This total investment includes $55,000 that must be paid to the franchiser or its affiliates.
Introduction to Parts 1 and 2
- Parts 1 and 2 set forth Annual Gross Revenue and selected expense data for 100 out of 105 Camps that were open and operating for more than 18 months as of December 31, 2011. Five franchisee-owned Camps were excluded because, although they were open and operating for more than 18 months as of December 31, 2011, they did not submit data to the franchiser as required.
- Not all of the 100 Camps in Parts 1 and 2 provided camp services, in-home services, and dog training services during the measurement period as you must provide. Some Camps provided camp services only, while others provided camp services in conjunction with either in-home services or dog training services or both.
- The 100 Camps whose results are included in Parts 1 and 2 are referred to collectively as the “Reporting Camps.”
- Part 1 sets forth Annual Gross Revenue data for the Measurement Period for the Reporting Camps.
- Part 2 sets forth occupancy and hourly labor cost data for the Reporting Camps during the Measurement Period. Because one of the 100 Reporting Camps owns its camp site and does not lease it, the Camp’s occupancy costs are excluded from Part 2, but the Camp’s labor costs are included in Part 2.
- The length of time that the Reporting Camps have been operating varies widely. Time in operation is a material factor affecting the Annual Gross Revenue of a Camp. As a result, for purposes of Parts 1 and 2, the franchiser divided the Reporting Camps into two categories, Adolescent Camps and Mature Camps, based upon the length of time a Camp has been operating as follows:
- Adolescent Camps are reporting Camps that have been operating continuously for more than 18 months as of December 31, 2011, but less than or equal to 36 months. The average length of time that an Adolescent Camp has been in operation as of December 31, 2011 is 27 months.
- Mature Camps are reporting Camps that have been operating continuously for more than 36 months as of December 31, 2011. The oldest Mature Camp has been operating continuously for 133 months as of December 31, 2011. The average length of time that a Mature Camp has been in operation as of December 31, 2011 is 57 months.
Part 1 – Annual Gross Revenue
- Annual Gross Revenue means total Gross Revenue for camp services for each reporting camp during the measurement period. Additionally, Annual Gross Revenue includes (i) Gross Revenue for in-home services for the 31 Reporting Camps that provided in-home services during the Measurement Period, and (ii) Gross Revenue for dog training services for the 16 Reporting Camps that provided dog training services during the Measurement Period.
- The section below sets forth (i) the Average Annual Gross Revenue, as well as the highest and lowest Annual Gross Revenue, of all Reporting Camps in each category during the Measurement Period, and (ii) the Average Annual Gross Revenue, as well as the highest and lowest Annual Gross Revenue, of Reporting Camps in the top quartile (top 25%) of all Reporting Camps in each category based on Annual Gross Revenue during the Measurement Period.