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FDD Talk: Camp Bow Wow Franchise Review (Financial Performance Analysis, Costs, Fees, and More)

Last updated on April 5, 2020 by Franchise Chatter Leave a Comment
in FDD Talk: Miscellaneous Franchises, Franchise Earnings, Pet Franchise



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In this FDD Talk 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 2018 FDD
  • Section III – Initial franchise fee, royalty fee, marketing fee, and other fees for a Camp Bow Wow franchise, based on Items 5 and 6 of the company’s 2018 FDD
  • Section IV – Number of franchised and company-owned Camp Bow Wow outlets at the start of the year and the end of the year for 2015, 2016, and 2017, based on Item 20 of the company’s 2018 FDD
  • Section V – Presentation and analysis of Camp Bow Wow’s financial performance representations, based on Item 19 of the company’s 2018 FDD, including information on the:
  • 2017 average, median, high, and low gross revenue for the top 25%, bottom 25%, and all Camp Bow Wow franchises that were open and operating for more than 12 months as of December 31, 2017
  • 2017 average annual occupancy expense, average labor expense percentage, and average owner’s discretionary income for the top 25%, bottom 25%, and all Camp Bow Wow franchises that were open and operating for more than 12 months as of December 31, 2017 and submitted data to the franchisor in time to be included in this Item 19
  • 2013, 2014, 2015, 2016, and 2017 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 2013-2017 calendar years

Section I – Background Information

21 Things You Need to Know About the Camp Bow Wow Franchise

Ends 2018 as One of Brand’s Strongest Years

America's Most Lucrative Franchises of the Year

1.  Near the end of December 2018, Camp Bow Wow announced that 2018 was one of its strongest years of growth yet. Camp Bow Wow more than doubled in year-over-year growth in openings by reaching its projected goal of 20 new locations.

2.  Cail Morrison, president of Camp Bow Wow, said, “The Camp Bow Wow team, across all facets of the company, set the bar high at the on-set of the year and they’ve delivered strong results as we close out 2018. I’m proud and excited to be leading the brand into 2019 and am looking forward to what we’ll accomplish in the New Year.”

3.  In addition, Camp Bow Wow furthered its position as the leading pet care franchise through new market penetration and location enhancements:

  • Opened Camp Bow Wow Fair Oaks in late October as the first-ever location with a VCA Hospital on-site offering veterinary services by appointment;
  • Opened first Camps in the states of Washington and Mississippi;
  • Brought the Camp Bow Wow experience to multiple markets for the first time, including Peoria, IL; Monroe, WA; Asheville, NC; Bremerton, WA; and Pensacola, FL.

4.  As part of Camp Bow Wow’s continued investment in the brand and focus on improving the customer experience, the company also successfully executed multiple strategic initiatives to meet the needs of its rapidly expanding business:

  • Launched cutting-edge proprietary Data Dawg 2.0 software, the central application for franchise owners to manage operations. The software is uniquely tailored to Camp Bow Wow’s business strategy and franchise owner needs, resulting in streamlined day-to-day business management.
  • Overhauled website with forward-thinking design, enhanced functionality, and enriched content.

5.  As the company continues to align itself with strategic franchisee partners who are interested in investing in the pet care business, the brand is on track to match or exceed 2018’s Camp openings in 2019 and to reach its long-term goal of more than 300 units in the next three years.


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Launches Proprietary, Industry-Leading Software

6.  In late October 2018, Camp Bow Wow launched its cutting-edge, proprietary Data Dawg 2.0 software, the central application for franchise owners to manage operations. Camp Bow Wow overhauled its software to meet the growing needs of its rapidly expanding business. Data Dawg 2.0 is designed to replace legacy software and scale with the growth of the company.

7.  Steve Ricard, vice president of technology at Camp Bow Wow, said, “Data Dawg 2.0 is uniquely tailored to Camp Bow Wow’s business strategy and franchise owner needs, which is what makes it so powerful. By building our software through Google’s leading-edge angular framework, everything is new from the ground up and ensures the software can keep up with the company’s growth for many years to come.”

8.  Data Dawg 2.0’s responsive platform is built to further ease day-to-day business management for franchise owners. The software is the central database for each franchise’s customers, helping the owner to better understand its clientele, revenue streams, and ways to maximize profitability.

9.  Additionally, the upgrade benefits the entire Camp Bow Wow system. For customers, it allows quicker check-in and out times and provides the corporate team with easily accessible data analytics in order to provide actionable data insights that benefit the franchise owners.

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10.  The project was a large undertaking, enacted by a small but dedicated in-house team that kept Camp Bow Wow’s goals and requirements at the forefront of all phases of development. While the technology group spearheaded the project, the team strategized with all corporate departments as well as the franchise community to ensure the roadmap delivered on all priorities, making the new platform a company-wide effort.

11.  Cail Morrison, president of Camp Bow Wow, said, “Through Data Dawg 2.0, we are able to provide franchise owners with industry leading technology. This update is an investment in Camp Bow Wow’s future as it will allow the company to remain at the forefront and to continue leading the industry through ongoing innovation.”

12.  In addition to Camp Bow Wow’s Data Dawg upgrade, the brand is further investing in its technology through a full website redesign, which launched at the end of the month.

Appoints New President

13.  In early September 2018, Camp Bow Wow appointed Cail Morrison as its new president. Morrison, former vice president of Anytime Fitness’s North American franchise operations, spent 11 years propelling that company to become a top fitness franchisor. At his previous senior leadership position, Morrison was responsible for accelerating business growth and driving profitability for the 2,600 Anytime Fitness North American franchise locations as well as opening 200 new franchises per year.

14.  In his new position as Camp Bow Wow’s president, Morrison will focus on increasing unit-level revenue and profitability, leveraging new technologies to stay atop of industry innovation, and accelerating system growth.

15.  Morrison said, “I’m thrilled to join the Camp Bow Wow team where there is not only great opportunity for growth on individual and company-wide levels, but is also a place where everyone has a passion for what they do. I believe franchising gives people the opportunity to be their own boss, do something they love and live a balanced life. It’s our job to create a path in which all of this can happen together. That’s the fun part for me and I’m excited to use my previous knowledge to help grow and to simultaneously learn from the thriving pet industry.”

16.  Doug Drew, president of VCA Animal Hospitals and Petcare Services, parent company of Camp Bow Wow, said, “Cail’s strong grasp on the franchise industry as well as his passion and willingness to dive right into our dog-centric business makes him the ideal candidate to take on this role. We feel confident that Cail will work with both our franchise owners and the corporate team to help the company continue to remain at the forefront of the pet care industry.”

Company History

17.  Camp Bow Wow was founded in 2000 by Heidi Ganahl in Colorado. At the time, Camp Bow Wow was one of the only dog day care facilities in the area. The first Camp Bow Wow was an immediate success and franchising started in 2003.

18.  All Camp Bow Wow locations offer doggy day care services as well as overnight boarding, with live webcams that allow customers to check in on their dogs. Some locations offer additional services such as grooming, training, and branded retail items.

19.  Ganahl later started Home Buddies to offer in-home care services such as pet sitting, dog walking, pet food delivery, pet waste cleanup, grooming, and training for both dogs and other pets unable to come to day care. Behavior Buddies, which is a behavior and dog training service that is offered by many Camp Bow Wow locations, was also added to the brand’s wide array of services.

20.  After growing to numerous locations across the United States and Canada, Camp Bow Wow was acquired in August 2014 by VCA Animal Hospitals, a leading animal healthcare company in the United States and Canada. Since September 2017, VCA, Inc. and subsequently Camp Bow Wow are wholly-owned subsidiaries of Mars, Incorporated.

Entrepreneur’s Franchise 500

21.  Camp Bow Wow ranked No. 193 on Entrepreneur’s 2019 Franchise 500 list. The franchise also earned the No. 1 spot in the Pet Services category.

Section II – Estimated Costs

  • Please click here for detailed estimates of Camp Bow Wow franchise costs, based on Item 7 of the company’s 2018 FDD.

Section III – Initial Franchise Fee, Royalty Fee, Marketing Fee, and Other Fees

  • Please click here for detailed information on Camp Bow Wow’s initial franchise fee, royalty fee, marketing fee, and other fees, based on Items 5 and 6 of the company’s 2018 FDD.

Section IV – Number of Franchised and Company-Owned Outlets

Franchised

2015

  • Outlets at the Start of the Year:  122
  • Outlets at the End of the Year:  122
  • Net Change:  0

2016

  • Outlets at the Start of the Year:  122
  • Outlets at the End of the Year:  127
  • Net Change:  +5

2017

  • Outlets at the Start of the Year:  127
  • Outlets at the End of the Year:  136
  • Net Change:  +9

Company-Owned

2015

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

2016

  • Outlets at the Start of the Year:  7
  • Outlets at the End of the Year:  9
  • Net Change:  +2

2017

  • Outlets at the Start of the Year:  9
  • Outlets at the End of the Year:  9
  • Net Change:  0

Section V – Financial Performance Representations (Item 19, 2018 FDD) and Analysis

Part 1 – Annual Gross Revenue

  • The tables below show the total annual gross revenue for Camp Services, Dog Training Services, and any other Approved Products and Services (“Gross Revenue,” for purposes of this Item 19) from January 1, 2017 to December 31, 2017 (the “Measurement Period”) for the 128 franchises that were open and operating for more than 12 months as of December 31, 2017 (“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 205 months as of December 31, 2017. The average time in operation for Revenue-Reporting Franchises is 93 months, and the median is 108 months.
  • The Annual Gross Revenue tables are based on data that was reported to the franchisor by the franchise owner for 124 of the 128 Revenue-Reporting Franchises. Four of the Revenue-Reporting Franchises did not submit their data to the franchisor as required, so data for those 4 Camps was pulled from the revenue information those respective franchises entered into Data Dawg. The franchisor has not audited nor independently verified this information.

All Revenue-Reporting Franchises

  • High Annual Gross Revenue:  $1,983,177
  • Low Annual Gross Revenue:  $284,798
  • Average Annual Gross Revenue:  $841,890
  • Median Annual Gross Revenue:  $802,355

Top 25% Revenue-Reporting Franchises

  • High Annual Gross Revenue:  $1,983,177
  • Low Annual Gross Revenue:  $1,048,732
  • Average Annual Gross Revenue:  $1,225,676
  • Median Annual Gross Revenue:  $1,158,370

Bottom 25% Revenue-Reporting Franchises

  • High Annual Gross Revenue:  $639,588
  • Low Annual Gross Revenue:  $284,798
  • Average Annual Gross Revenue:  $514,553
  • Median Annual Gross Revenue:  $507,107
  • Of the 128 Revenue-Reporting Franchises, 56 (44%) exceeded the average and 64 (50%) exceeded the median, with 33 Camps earning more than $1 million in annual Gross Revenue by the end of the Measurement Period.
  • The Top 25% of Revenue-Reporting Franchises consists of 32 Camps. Of those, 8 (25%) exceeded the average and 16 (50%) exceeded the median.
  • The Bottom 25% of Revenue-Reporting Franchises consists of 32 Camps. Of those, 15 (47%) exceeded the average and 16 (50%) exceeded the median.

Part 2 – Select Expenses

  • The tables below show selected expense data during the Measurement Period for 124 out of the 128 Camp Bow Wow Franchises that were open and operating for more than 12 months as of December 31, 2017 (“Expense-Reporting Franchises”).
  • The franchisor excluded 4 Camp Bow Wow Franchises because although they were open and operating for more than 12 months as of December 31, 2017, they did not submit data to the franchisor in time to be included in this Item 19.
  • 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 7,950 square feet and are 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



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