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FDD Talk 2020: Big Frog Custom T-Shirts & More Franchise Review (Financial Performance Analysis, Costs, Fees, and More)

Last updated on October 1, 2020 by Franchise Chatter Leave a Comment
in Customized Products Franchise, FDD Talk: Miscellaneous Franchises, Franchise Earnings



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

  • Section I – Background information on the Big Frog Custom T-Shirts & More franchise opportunity, including relevant news updates
  • Section II – Estimated initial investment for a Big Frog Custom T-Shirts & More 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 Big Frog Custom T-Shirts & More franchise, based on Items 5 and 6 of the company’s 2020 FDD
  • Section IV – Number of franchised and company-owned Big Frog Custom T-Shirts & More 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 Big Frog Custom T-Shirts & More’s financial performance representations, based on Item 19 of the company’s 2020 FDD, including information on the:
  • 2019 and 2018 average, median, highest, and lowest gross revenue, customer count, and average sale for the 86 franchised Big Frog Custom T-Shirts & More stores open and operating for at least 12 months as of December 31, 2019
  • 2019 average revenue, cost of goods sold, rent, payroll, marketing expenses, utilities, number of customers, and sale ticket for the top third, middle third, bottom third, and all 64 franchised Big Frog Custom T-Shirts & More stores in operation on December 31, 2019, who had operated for at least 12 months, and submitted to Big Frog one or more monthly profit and loss statements

Section I – Background Information

18 Things You Need to Know About the Big Frog Custom T-Shirts & More Franchise

Assists Other Small Businesses in Reopening

1.  In early July 2020, Big Frog Custom T-Shirts & More began the process of reopening its locations as the nation continues to progress in flattening the pandemic curve. In addition to providing its franchise system with the tools necessary to safely reopen to the public, the brand has taken the appropriate measures to support other retail and small business owners who were impacted.

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2.  The guiding light through the trying times induced by the unexpected pandemic was the outpouring of compassion within local communities and beyond. The Big Frog Franchise Group is no exception. Each location has turned to their communities, lending support through various campaign and donation initiatives, including PPE materials, T-shirt fundraising programs to promote other small businesses, and more.

3.  The garment franchise isn’t stopping there. Now, as the nation begins to taste normalcy and small businesses start to open to limited capacities, Big Frog has come up with a new way to show its solidarity and support to its fellow local businesses by sharing its own strategy and approach. Business owners will have the ability to customize Big Frog’s plan so they can return to the public without having to completely reinvent the wheel.

4.  The Big Frog Franchise Group has developed its own Retail & Small Business Reopening & Marketing Toolkit, which includes the following:

  • Customizable reopening and marketing checklist;
  • Big Frog sanitation and safety guidelines;
  • Pre-designed “social distancing” floor decal signs; and
  • Pre-designed safety and sanitation signs.

5.  Tina Bacon-DeFrece, president and CEO of Big Frog, said, “As a franchise, we truly recognize the impact the pandemic has had on our partners, who are small business owners themselves. We’re humbled to be able to truly speak to our mission as a brand in our commitment to lend a hand beyond our Big Frog network. We all need to continue to come together – just like we did at the beginning of the pandemic – and help each other through this process of opening our doors back up to the community, and that’s why we’re more than happy to offer our reopening toolkit to help others get back on their feet, safely and successfully.”

6.  In addition to providing support to surrounding small businesses, Big Frog is committed to ensuring the safety of its consumers as the brand is abiding by the national and state guidelines mandated by the Centers for Disease Control and Prevention (CDC). This includes practicing social distancing by remaining six feet apart, operating at a minimized capacity, inserting sanitizing stations, and advising customers to wear masks.


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7.  In order to achieve this, and to make sure local owners feel confident reopening, Big Frog has provided its franchise system with its own internal communications plan and an employee health policy.

Opens 100th Location in Heart of New York City

8.  In mid-December 2019, Big Frog Custom T-Shirts & More announced the opening of a new location at 2244 Broadway on the Upper West Side of Manhattan. The December 18th opening marked the first retail store in New York City and the 100th franchise location for the brand.

9.  The newest Big Frog is owned and operated by Upper West Side resident Kerry Colley, who spent more than 20 years in the banking industry before deciding to embark on a new professional journey. Diving into entrepreneurship head-first, Colley and his husband Joshua Drumm hope that Big Frog will provide their neighbors with the opportunity to use garment design as an avenue for creativity and expression, as well as support other businesses in building and promoting their brands.

10.  Colley said, “We are beyond excited to be the first Big Frog in New York City and the 100th location for the franchise. Josh and I are joining an incredibly supportive Big Frog family, and together we will deliver high-quality apparel and other unique products designed to empower individuals, groups, and businesses to express themselves and inspire the world. We hope to bring fun and added value to our customers as they work with our in-house designers to get just the look they want.”

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11.  As the 100th location, Big Frog of the Upper West Side is just as much a milestone for Big Frog nationally as it is for Colley and Drumm. According to Tina Bacon-DeFrece, president and CEO of Big Frog Custom T-Shirts & More, “Since our founding in 2009, everyone on the Big Frog team, from our corporate staff to our franchisees, have had a major part in getting us to this 100th store milestone. We’re so excited to have Kerry and Josh lead the way as we expand beyond 100 locations. The two make a great team and together will lead the creative force that will launch Big Frog into New York City while providing us a footprint for further growth.”

Texas Shop Closes 2019 with Highest Grossing Revenue in Brand’s History

12.  In early February 2020, Joe Mock, owner of Big Frog Custom T-Shirts & More in Plano, Texas, announced that his shop had earned $1 million in sales in 2019. This achievement marks a new milestone for the Big Frog network, as Mock and his team are the first location to earn $1 million in sales within one year. Big Frog of Plano crossed the threshold on December 5, 2019, celebrating on that day with a store-wide toast of appreciation.

13.  Mock said, “When we realized the million dollar mark was just a few weeks away, each team member actually made a prediction on what day and time, to the minute, we would reach it. It was a fun way to get ourselves pumped for the moment while motivating our team to keep our eyes on the prize. We actually had two employees on our team who had predictions just six minutes away from the actual time!”

14.  Mock credits a lot of his store’s success to the partnerships made with organizations in the Plano community. Since opening up his business, Mock has created customized apparel for a wide variety of customers, including local schools, small businesses, and non-profit organizations.

15.  “I’ve come to better know and love the people who are a part of my community being in this business for over eight years,” Mock added. “When we opened our doors, we were the eighteenth Big Frog franchise to appear on the map, and not many people knew who we were. It was because our community gave us a chance that we’ve grown to be the successful business we are today, and for that we are extremely grateful.”

Company History

16.  Big Frog Custom T-Shirts & More was founded as Dream Niche, LLC and Bay Area Custom T-Shirts, LLC in 2007 by Leeward J. Bean, Ronald E. DeFrece, and Christina (Tina) Bacon-DeFrece in Dunedin, Florida. Bean and Ron DeFrece had been working together since 1997 at the company that DeFrece had previously started, Ocean Optics.

17.  Sensing an opportunity to enter a new market, Bean and the DeFreces decided to shift their focus to offering custom t-shirts. After two years, Big Frog Custom T-Shirts & More started franchising. Today, there are Big Frog locations around the U.S. and Canada.

Entrepreneur’s Franchise 500

18.  Big Frog Custom T-Shirts & More ranked No. 474 on Entrepreneur’s 2020 Franchise 500 list.

Section II – Estimated Costs

  • Please click here for detailed estimates of Big Frog Custom T-Shirts & More 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 Big Frog Custom T-Shirts & More’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:  70
  • Outlets at the End of the Year:  82
  • Net Change:  +12

2018

  • Outlets at the Start of the Year:  82
  • Outlets at the End of the Year:  92
  • Net Change:  +10

2019

  • Outlets at the Start of the Year:  92
  • Outlets at the End of the Year:  88
  • Net Change:  -4

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

Part 1 – Big Frog Key Performance Indicators – 2019 Compared to 2018

  • Part 1 of this Item 19 presents information about the Key Performance Indicators and a historic financial performance with respect to Big Frog Stores open and operating for at least 12 months as of December 31, 2019.
  • On December 31, 2019, there were 88 franchised Big Frog Stores in operation. The Key Performance Indicators below are based on 86 franchised outlets.
  • Big Frog has excluded the Key Performance Indicators of 2 franchised outlets, as they opened for business during calendar year 2019 and have not operated for a full 12 months.
  • The data used in preparing these Key Performance Indicators were compiled from information submitted to Big Frog through the Big Frog Point of Sale system (“POS System”).
  • While Big Frog believes that the data is accurate, it has not independently verified or audited the information.

2019



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