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

• Section I – Background information on the Wild Birds Unlimited franchise opportunity, including relevant news updates

• Section II – Estimated initial investment for a Wild Birds Unlimited franchise, based on Item 7 of the company’s 2020 FDD

• Section III – Initial franchise fee, royalty fee, marketing fee, and other fees for a Wild Birds Unlimited franchise, based on Items 5 and 6 of the company’s 2020 FDD

• Section IV – Number of franchised and company-owned Wild Birds Unlimited outlets at the start of the year and the end of the year for 2017, 2018, and 2019, based on Item 20 of the company’s 2020 FDD

• Section V – Presentation and analysis of Wild Birds Unlimited’s financial performance representations, based on Item 19 of the company’s 2020 FDD, including information on the:

• fiscal years 2017, 2018, and 2019 average gross sales for those Wild Birds Unlimited franchises open and operational for at least 24 consecutive months as of December 31, 2017, December 31, 2018, and December 31, 2019, respectively

• actual number of stores, which were open and operational for at least 24 months as of the end of the applicable fiscal year, that achieved certain gross sales levels for fiscal years 2017, 2018, and 2019

• summary of gross sales for the first full 12 months of operation for stores that opened between January 1, 2014 and December 31, 2018 and that had completed at least 12 full months of operation as of December 31, 2019

• summary of gross sales for the second full 12 months of operation for stores that opened between January 1, 2014 and December 31, 2017 and that had completed at least their second 12 full months of operation as of December 31, 2019

• average monthly sales volume percentage that contributed to the 2019 gross sales for those Wild Birds Unlimited franchises open and operational for all of 2019 and opened prior to January 1, 2019

• average cost of goods sold for products offered by the stores open for at least 24 months as of the end of each fiscal year 2016, 2017, and 2018, as well as the average of advertising and wage expenses incurred by first year stores that completed their first full year of operation in 2014, 2015, 2016, 2017, or 2018

• fiscal years 2016, 2017, and 2018 average owner’s discretionary cash flow achieved by stores as reported by franchisees that were operating the previous full 24 months

Section I – Background Information

21 Things You Need to Know About the Wild Birds Unlimited Franchise

Continues to Support Franchisees Through COVID-19 Pandemic

1.  In mid-April 2020, Wild Birds Unlimited released a press statement discussing how the brand was coping with the COVID-19 pandemic. Wild Birds Unlimited said that it was doing everything in its power to ensure that its franchisees are among those small business owners who will weather this storm and thrive down the line. According to Paul Pickett, chief development officer of Wild Birds Unlimited, the first order of business to set franchisees up for success was to quickly and efficiently ensure that as many local owners as possible were onboarded to the MyWBU platform, which facilitates online orders, so that online sales could continue.

2.  According to Pickett, “We jumped on this early and set up a daily task force meeting with our entire executive team. Very quickly, we saw where the opportunities were and it became clear that online retail would be the only way for people to shop in the near future. While a lot of our franchisees were already set up on our digital platform, we worked to onboard those who weren’t as quickly as possible.”

3.  In addition to helping franchisees keep their businesses open online while customers are stuck at home, Wild Birds Unlimited also rolled out new processes for “curbside delivery,” which allows customers to place orders over the phone and pick it up from their local store without ever exiting their car or coming in direct contact with anyone. The brand also created many new marketing materials for franchisees to promote this new service.

4.  Pickett added, “We created multiple layers of marketing collateral so that our franchisees could begin communicating with their customers on two different levels. First, we knew that our customers would have more time to be at home and birdwatch, so we wanted to focus on getting the message out that this activity can help give you some reprieve from the current situation. Second, we created a whole new set of marketing materials for people who needed to continue getting product in a safe way in order to continue feeding birds. That meant creating signs for stores and digital collateral for websites, emails and social media for our franchisees.”

5.  The marketing collateral that Wild Birds Unlimited quickly created for its franchisees extended beyond signs to include messaging for location websites and social media pages and the development of a series of videos about birds in nature. “People need to find ways to relax right now. These videos provide some love in an otherwise challenging day,” Pickett said. “We’re working around the clock to help our stores update materials as things change. We’re also communicating with Google to ensure that store hours of operation are correct, and we’re providing our franchisees with all of the health information and restrictions they need to be aware of to stay safe at this time.”

6.  Having those lines of communication open is standard operating procedure for Wild Birds Unlimited regardless of circumstance, but it’s even more of a priority during the current crisis. In addition to one-on-one consulting, the brand’s support team has been helping franchisees navigate next steps with landlords and rent payments, financial projections, and general motivation. Wild Birds Unlimited also set up a coronavirus hotline to ensure that no franchisee question was missed or overlooked.

7.  “In addition to the hotline number, we set up a specific coronavirus email address so that all of our franchisee requests go through that. That’s helped us focus on emails and calls that need to be streamlined. We have a schedule of who monitors that inbox and hotline on a regular basis, too, so that we can be more productive internally,” Pickett said.

8.  One of the brands’ other focuses has been on helping franchisees navigate the new financing programs that are now available, and assisting with rent relief. “The new financing options from the CARES Act and SBA Disaster Relief loan programs are complex and changing, sometimes day by day,” said Pickett. “Managing the information and providing resources and partnerships from our financing partners has been more than a full time job over the last few weeks. But, providing financial information and resources has never been more important than right now.”

Appoints New Vice President of Retail Concepts

9.  In late February 2020, Wild Birds Unlimited appointed Amy Moore as its new vice president of retail concepts. Moore has worked with the brand since 1994 when she accepted a position as a field consultant, but her history with Wild Birds Unlimited goes much further back.

10.  As her four children grew up, Moore’s mother, Rose Zack, was looking to transition from being a full-time stay-at-home mom to reentering the workforce. Zack came across a local Wild Birds Unlimited store and took a part-time job as a sales associate. Then, an opportunity arose. That same local Wild Birds Unlimited came up for sale, and Moore’s family purchased it with the intention of her mother acting as primary operator. Moore also worked in the store doing everything from stocking, sales, and selecting and buying merchandise for the store.

11.  In 1994, a job opportunity came up with Wild Birds Unlimited as a field consultant, and Moore jumped at the chance to be a part of the brand. She traveled to Indianapolis to meet with CEO Jim Carpenter and his wife Nancy, interviewed for the position, and joined the team as one of two field consultants in the U.S.

12.  “I really got to see a lot of the U.S. and Canada in that position and worked very closely with a lot of owners,” said Moore. “Eventually, I narrowed my scope to focus more on new owners in training, and then I was promoted to Director of Retail Operations where I had the privilege to manage the business coach support team. Their primary role was to deliver ongoing support to our franchisees via ongoing communication and site visits.”

13.  As vice president of retail concepts, Moore will use her decades of experience to evaluate how the Wild Birds Unlimited franchise organization operates. “We really have two groups of customers we need to support and understand – the franchisees and the retail consumers,” said Moore. “My new role was created to ensure that I am part of developing and executing a retail model that evolves with our customers, and to make sure we are implementing all of the most innovative tools, products and services.”

14.  Moore continued, “We have a lot of incredible initiatives that we are rolling out that will positively benefit both of our customers and keep us as leaders in the specialty retail sector. We have new marketing platforms that will allow us to create customers journeys and social media communications. We are rolling out a new e-commerce platform into our stores to be more convenient for our customers and implementing a new Point of Sale System that will allow us to collect data so we can study the needs of our customers.”

15.  Another one of Moore’s biggest initiatives is to get each store up to brand standards in terms of color specs, fixtures and inventory. All of the changes being implemented are based on direct customer feedback. “We have a very extensive customer survey tool and platform that can tell us if we are delivering according to our service standards,” said Moore. “We’re counting smiles. We want to know if the Wild Birds Unlimited experience makes you smile.”

Partners with IFA to Launch Franchising Pride Council

16.  In late March 2020, the International Franchise Association (IFA) announced that it had launched a landmark council within its organization – the Franchising Pride Council. The Franchising Pride Council will provide opportunities for mentorship and create a network for LGBTQ small business owners and employees within the franchising industry. The IFA is the world’s oldest and largest organization representing franchising globally.

17.  The Pride Council will live within the IFA Foundation Diversity Institute jurisdiction and will function to promote LGBTQ inclusion within the franchise community. The council will also fund research on the LGBTQ community’s impact on franchising and how to foster continued growth of that impact.

18.  The Franchising Pride Council is co-chaired by Paul Pickett, chief development officer of Wild Birds Unlimited, and Mark Jameson, executive vice president of FASTSIGNS, and was developed in conjunction with Suzanne Beall, VP of government relations and public policy for the IFA. The newly-formed Pride Council was launched at the September 2019 IFA meeting. “Diversity is a key part of franchising, and I believe this Council is such a big step towards expanding that hallmark of our business model to the LGBTQ community,” said Jameson.

Company History

19.  Wild Birds Unlimited was founded in 1981 by Jim Carpenter in Indianapolis, Indiana. Carpenter had always loved feeding and watching birds and decided to turn his hobby into a business. He set out to provide the best bird feeding products, while providing the finest customer experience. Although Wild Birds Unlimited was a legitimate business, in the early days, Carpenter was still treating it as more of a hobby. According to Carpenter, it took him nearly a decade to take Wild Birds Unlimited seriously and hire the right people to help take the company to the next level.

20.  Carpenter started franchising Wild Birds Unlimited back in 1983. After hiring a strategic advisory group in 1995, growth picked up exponentially. Since then, Wild Birds Unlimited has opened locations all around the U.S. as well as a few locations in Canada.

Entrepreneur’s Franchise 500

21.  Wild Birds Unlimited ranked No. 137 on Entrepreneur’s 2020 Franchise 500 list.

Section II – Estimated Costs

• Please click here for detailed estimates of Wild Birds Unlimited franchise costs, based on Item 7 of the company’s 2020 FDD.

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

• Please click here for detailed information on Wild Birds Unlimited’s initial franchise fee, royalty fee, marketing fee, and other fees, based on Items 5 and 6 of the company’s 2020 FDD.

Section IV – Number of Franchised and Company-Owned Outlets

Franchised

2017

• Outlets at the Start of the Year:  306
• Outlets at the End of the Year:  327
• Net Change:  +21

2018

• Outlets at the Start of the Year:  327
• Outlets at the End of the Year:  338
• Net Change:  +11

2019

• Outlets at the Start of the Year:  338
• Outlets at the End of the Year:  343
• Net Change:  +5

Company-Owned

2017

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

2018

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

2019

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

Section V – Financial Performance Representations (Item 19, 2020 FDD) and Analysis

• The franchisor compiled the data in this financial performance representation from its U.S. franchisees’ monthly sales reports and annual financial statements submitted to the company (the “P&L Statements”). This information is not audited, and neither Wild Birds Unlimited nor its independent certified public accountants have verified the accuracy of the information or the methods used by its franchisees in their computation.

• The financial performance information provided for each 12-month period excludes all stores that were not operational during the entire 12-month period.

• The stores included in this financial performance representation range in age from 1 to over 30 years of operation and represent a variety of geographic and demographic circumstances. These variations in circumstances include: (a) the total population of the city in which the store is located ranges from over 700,000 to less than 1,000; (b) a number of the cities in which the stores are located are suburbs of larger metropolitan areas; and (c) some stores located in areas with small populations are in areas with a substantial amount of “tourist” traffic.

• All of the data is with respect to franchised stores, although two of the franchisor’s officers own and operate a Wild Birds Unlimited store under a franchise agreement with Wild Birds Unlimited.

• The stores listed in this financial performance representation are generally located in neighborhood or regional strip shopping centers or freestanding buildings. Several of the stores operate temporary seasonal kiosks; these sales are included in this Item 19 data.

• Gross Sales is the sales price of all merchandise and services sold, including cash and charge sales of every kind made at the store, and mail, internet, or telephone orders received or taken at the store.

Schedule 1 – Year-Over-Year Percent Change in Annual Gross Sales