FDD Talk 2016: The Camp Bow Wow Franchise Opportunity (Financial Performance Analysis, Estimated Costs, and Other Important Stuff You Need to Know)

In this FDD Talk 2016 post, you’ll learn the following:

• Section I – Background information on the Camp Bow Wow franchise opportunity, including relevant news updates

• Section II – Estimated initial investment for a Camp Bow Wow franchise, based on Item 7 of the company’s 2016 FDD

• Section III – Presentation and analysis of Camp Bow Wow’s financial performance representations, based on Item 19 of the company’s 2016 FDD, including information on the:

• 2015 average, high, and low gross revenue for the top 25%, bottom 25%, all Camp Bow Wow franchises in operation for greater than 36 months, and all Camp Bow franchises in operation for greater than 24 months but less than 36 months

• 2015 average, high, and low average ticket for the top 25%, bottom 25%, all Camp Bow Wow franchises in operation for greater than 36 months, and all Camp Bow franchises in operation for greater than 24 months but less than 36 months

• 2015 average annual occupancy expense, average labor expense percentage, and average owner’s discretionary income for the top 25%, bottom 25%, all Camp Bow Wow franchises in operation for greater than 36 months, and all Camp Bow franchises in operation for greater than 24 months but less than 36 months

• 2010, 2011, 2012, 2013, 2014, and 2015 consolidated gross revenue for camp services, in-home services, dog training services, as well as retail sales for all Camp Bow Wow locations that were open and operating for any length of time from 2010-2015 calendar years

Section I – Background Information

Camp Bow Wow Founder Sets Sights on 1,000 Locations

The founder and CEO of Camp Bow Wow, the largest pet-care franchise in the world, has set a goal of achieving 1,000 locations. As part of this plan, Heidi Ganahl sold the company in August 2014 to VCA Inc., an animal healthcare company with more than 600 animal hospitals in the U.S. and Canada, to pull in the resources of the larger company.

Ganahl remains the company’s CEO, with a strong focus on developing strategy to grow the brand.

Camp Bow Wow provides day-care services for dogs, as well as overnight boarding services. At some locations, customers can receive additional services such as grooming and training and can purchase retail merchandise.

Chain Achieves Highest Franchise 500 Ranking

Entrepreneur ranked Camp Bow Wow No. 204 in its 2016 Franchise 500, up from No. 410 ranking in 2015. It’s the highest rank for the chain, which rose to No. 214 in 2013 before plummeting to No. 458 in 2014.

Camp Bow Wow has a one-year unit growth rate of 6.3 percent with 8 units added, while its three-year unit growth rate is 11.8 percent with 15 new locations. The chain started 2016 with 126 franchised units in the U.S., one franchised location in Canada, and eight company-owned facilities.

Plan Forged With Late Husband Sparked Camp Bow Wow

Ganahl opened her first Camp Bow Wow in 2000, revisiting a business plan she and her first husband, Bion Flammang, had created in 1994 before he was killed in a plane crash. She took $80,000 that remained from the $1 million settlement she received from Bion’s tragic death and opened her first Camp Bow Wow in Denver.

A second location soon followed, and Ganahl began franchising in 2003. Over time, she developed the business into the largest pet care franchise in the world, created a charitable foundation called the Bow Wow Buddies Foundation, remarried and raised four children.

Ganahl also created two other companies:

• Home Buddies offers in-home services such as dog walking, pet sitting, pet-food delivery, cleanup of pet waste, and grooming and training.

• Behavior Buddies provides behavior and dog training at many Camp Bow Wow facilities.

Dogs Get to Play All Day

Pets can play all day in the indoor and outdoor play yards. Overnight residents get individual “cozy cabins” and a nightly Campfire Treat. Medication administrations and other requests are provided at no extra charge.

Employees are called camp counselors and are highly trained in dog behavior and pet first aid and CRP. The dogs, called campers, must pass a socialization interview, be spayed or neutered, and be up to date on vaccinations. Facilities are monitored 24/7, and customers can view live webcams in order to check in with their pets.

Dogs at Camp Bow Wow are given regular exercise, socialized with other dogs and people, and benefit from activity that relieves boredom, erases separation anxiety, and avoids destructive behavior.

Section II – Estimated Costs

• Please click here for detailed estimates of Camp Bow Wow franchise costs, based on Item 7 of the company’s 2016 FDD.

Section III – Financial Performance Representations (Item 19, 2016 FDD) and Analysis