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 2021 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 2021 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 2018, 2019, and 2020, based on Item 20 of the company’s 2021 FDD

• Section V – Presentation and analysis of Camp Bow Wow’s financial performance representations, based on Item 19 of the company’s 2021 FDD, including information on the:

• 2020 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, 2020 and submitted data to the franchisor in time to be included in Item 19

• 2020 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, 2020 and submitted data to the franchisor in time to be included in Item 19

• 2016, 2017, 2018, 2019, and 2020 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 2016-2020 calendar years

Section I – Background Information

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

Rebounds Strong from Pandemic

1.  In early June 2021, despite setbacks throughout the pet care industry as a result of pandemic shutdowns, Camp Bow Wow said that it has maintained its strong position as the leading pet care franchise. As people return to the workplace and begin traveling again after a year of higher pet adoption rates, the company is experiencing 20% increases over the same period in 2019 in new customer acquisition. In fact, new customer acquisition in May 2021 was at the highest levels in company history.

2.  Julie Turner, president of Camp Bow Wow, said, “These numbers are extremely encouraging after a difficult year for our industry. Because pet ownership increased during the pandemic, we are now seeing more spending on pets and growing overall sentiment that pets are important family members who need and deserve the care and services we provide. This sets up our franchise owners for a strong rebound in 2021 and a great business outlook for years to come.”

3.  Camp Bow Wow partnered closely with Camp owners throughout the pandemic to provide additional support including increased communications, operational training, vendor negotiations, and financial assistance. The company also took the opportunity to simplify franchise operations by launching an all-new intranet to centralize communications and resources, and introduce technology advancements to create an enhanced customer experience through a digital application and online payment platform.

4.  Camp Bow Wow jumped 76 spots to No. 172 in Entrepreneur Magazine’s 2021 Franchise 500, where it has been ranked for 10 consecutive years. It was also named the 2020 Franchise Growth and Development Leader of the Year by Franchise Update Media.

Helped 110 Dogs in Need in 2020

5.  In late July 2021, the Camp Bow Wow blog reported that the Bow Wow Buddies Foundation helped 110 dogs in 2020. For years, the Bow Wow Buddies Foundation has helped sick and injured dogs receive life-saving medical attention by funding urgent medical care and aiding with veterinary bills. In 2020, Camp Bow Wow gave 110 deserving dogs across 39 different states the opportunity to live a happier and healthier life. Each of these dogs was either homeless or had parents who couldn’t afford to pay their mounting veterinary bills.

6.  When compared to 2019, 2020 saw a more than 150 percent increase in grant applications. With so many parents, families, rescue groups, and animal shelters reaching out, Camp Bow Wow knew there has never been a greater need for financial assistance. Having successfully increased the total number of dog medical grants year-over-year, the Bow Wow Buddies Foundation was quick to organize and implement meaningful fundraisers to help support the influx of requests.

7.  Julie Turner, president of Camp Bow Wow, said, “We started the Bow Wow Buddies Foundation because happy and healthy dogs are at the core of our franchise’s mission, and it’s been inspiring to see how our committed community has stepped up during this difficult year to support our cause. Our ability to help so many dogs in need during 2020 is a testament to the strong network our Foundation has built for those who share a passion for giving back and raising funds for imperative veterinary care that pet parents or shelters would otherwise not be able to provide.”

8.  Around the time the blog post was published, Camp Bow Wow’s philanthropic initiative was “Step Up For Pups” – a virtual and safe way for pet parents to raise money for a good cause while stretching their legs and spending time outside. By the end of the event, participants walked more than 1,071,000 total miles! Not only did every participant and their pup get some quality exercise, but most importantly, they also helped raise $15,000 across all donor platforms.

Company History

9.  Camp Bow Wow was founded in 2000 by Heidi Ganahl in Denver, Colorado. Ganahl was unsatisfied with the traditional “kennel model” of doggy day care and wanted to offer a better alternative. After a few months, Ganahl developed the idea for a fun, friendly environment for her own dogs. However, her dog Brion passed away and the idea was shelved for several years. Around 2000, Ganahl decided to give things another go and opened the first Camp Bow Wow.

10.  After successfully running Camp Bow Wow for a few years, Ganahl decided to start franchising the concept in 2003. The first franchised store opened in Castle Rock, Colorado. By the end of the decade, there were over 100 franchise locations in operation. In 2014, Veterinary Clinics of America (VCA Inc.) acquired Camp Bow Wow. Today, there are Camp Bow Wow locations around the United States.

Entrepreneur’s Franchise 500

11.  Camp Bow Wow ranked No. 271 on Entrepreneur’s 2022 Franchise 500 list.

Section II – Estimated Costs

• Detailed estimates of Camp Bow Wow franchise costs, based on Item 7 of the company’s 2021 FDD.

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

• 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 2021 FDD.

Section IV – Number of Franchised and Company-Owned Outlets

Franchised (U.S.)

2018

• Outlets at the Start of the Year:  136
• Outlets at the End of the Year:  151
• Net Change:  +15

2019

• Outlets at the Start of the Year:  151
• Outlets at the End of the Year:  161
• Net Change:  +10

2020

• Outlets at the Start of the Year:  161
• Outlets at the End of the Year:  174
• Net Change:  +13

Company-Owned

2018

• Outlets at the Start of the Year:  9
• Outlets at the End of the Year:  12
• Net Change:  +3

2019

• Outlets at the Start of the Year:  12
• Outlets at the End of the Year:  11
• Net Change:  -1

2020

• Outlets at the Start of the Year:  11
• Outlets at the End of the Year:  10
• Net Change:  -1

Section V – Financial Performance Representations (Item 19, 2021 FDD) and Analysis

• Except for Part 3 below, the franchisor does not include information from franchisor-owned outlets in this Item 19.

• Unless otherwise stated below, all data for franchisee-owned Camp Bow Wow Franchises has been reported to the franchisor by the franchise owner of the Camp Bow Wow Franchise.

• The franchisor has not audited this information nor independently verified any of the information included in this Item 19. All data in this Item 19 is historical data.

• None of the tables in this Item 19 include information regarding the 12 new Franchised Camps that were open less than 12 months as of December 31, 2020. No Franchised Camps were opened and permanently closed during that 12-month period.

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, 2020 to December 31, 2020 (the “Measurement Period”) for 161 of the 163 franchises that were open and operating for more than 12 months as of December 31, 2020 (“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 241 months as of December 31, 2020. The average time in operation for Revenue-Reporting Franchises is 105 months, and the median is 104 months.

• The Annual Gross Revenue tables are based on data that was reported to the franchisor by the franchise owner for 161 of the 163 Revenue-Reporting Franchises. Two of the Revenue-Reporting Franchises did not submit their data to the franchisor as required, so data for those two camps was pulled from the revenue information those respective franchisees entered into DataDawg.

All Revenue-Reporting Franchises

• Average Annual Gross Revenue:  $559,204
• Median Annual Gross Revenue:  $528,235
• High Annual Gross Revenue:  $1,449,082
• Low Annual Gross Revenue:  $149,009

Top 25% Revenue-Reporting Franchises

• Average Annual Gross Revenue:  $868,547
• Median Annual Gross Revenue:  $822,760
• High Annual Gross Revenue:  $1,449,082
• Low Annual Gross Revenue:  $673,786

Bottom 25% Revenue-Reporting Franchises

• Average Annual Gross Revenue:  $319,910
• Median Annual Gross Revenue:  $329,802
• High Annual Gross Revenue:  $389,682
• Low Annual Gross Revenue:  $149,009

• Of the 163 Revenue-Reporting Franchises, 70 (43%) exceeded the Average Annual Gross Revenue of $559,204 and 81 (50%) exceeded the Median Annual Gross Revenue of $528,235.

• The Top 25% of Revenue-Reporting Franchises consists of 41 Camps. Of those, 14 (34%) exceeded the Average Annual Gross Revenue of $868,547 and 20 (49%) exceeded the Median Annual Gross Revenue of $822,760.

• The Bottom 25% of Revenue-Reporting Franchises consists of 41 Camps. Of those, 23 (56%) exceeded the Average Annual Gross Revenue of $319,910 and 20 (49%) exceeded the Median Annual Gross Revenue of $329,802.

Part 2 – Select Expenses

• The tables below show selected expense data during the Measurement Period for 161 Camp Bow Wow Franchises that were open and operating for more than 12 months as of December 31, 2020 (“Expense-Reporting Franchises”). The Expense Reporting Franchisees do not include the two franchisees who did not submit data to the franchisor.

• 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 7,911 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

• Average Annual Occupancy Expense:  $123,143
• Median Annual Occupancy Expense:  $113,666
• High Annual Occupancy Expense:  $295,958
• Low Annual Occupancy Expense:  $41,008

Top 25% Expense-Reporting Franchises

• Average Annual Occupancy Expense:  $153,619
• Median Annual Occupancy Expense:  $149,768
• High Annual Occupancy Expense:  $295,958
• Low Annual Occupancy Expense:  $55,934

Bottom 25% Expense-Reporting Franchises

• Average Annual Occupancy Expense:  $91,131
• Median Annual Occupancy Expense:  $89,247
• High Annual Occupancy Expense:  $91,131 (Note: This is clearly wrong as it’s the same as the average.)
• Low Annual Occupancy Expense:  $42,430

• The Annual Occupancy Expense for Expense-Reporting Franchises averaged $15.57 per square foot (with a median of $14.76 per square foot during the Measurement Period).

• Of the 161 Expense-Reporting Franchises, 73 (45%) exceeded the Average Annual Occupancy Expense of $123,143 and 88 (55%) exceeded the Median Annual Occupancy Expense of $113,666.

• The Top 25% of Expense-Reporting Franchises consists of 40 Camps. Of those, 16 (40%) exceeded the Average Annual Occupancy Expense of $153,619 and 20 (50%) exceeded the Median Annual Occupancy Expense of $149,768.

• The Bottom 25% of Expense-Reporting Franchises consists of 40 Camps. Of those, 18 (45%) exceeded the Average Annual Occupancy Expense of $91,131 and 19 (48%) exceeded the Median Annual Occupancy Expense of $89,247.

B.  Annual Labor Expense

• The “Annual Labor Expense” includes the following costs associated with labor during the Measurement Period: wages, withholding taxes, and government-mandated employee benefits for non-managerial full-time and part-time workers.

• The Annual Labor Expense is intended to exclude salary and draws paid to managers and owners, but since the franchisor does not audit the information provided by its franchisees, it is possible that some franchisees may have mistakenly reported manager and/or owners’ salaries together with the Annual Labor Expense.

All Expense-Reporting Franchises

• Average Annual Labor Expense:  49%
• Median Annual Labor Expense:  46%
• High Annual Labor Expense:  122%
• Low Annual Labor Expense:  15%

Top 25% Expense-Reporting Franchises

• Average Annual Labor Expense:  49%
• Median Annual Labor Expense:  47%
• High Annual Labor Expense:  89%
• Low Annual Labor Expense:  21%

Bottom 25% Expense-Reporting Franchises

• Average Annual Labor Expense:  51%
• Median Annual Labor Expense:  51%
• High Annual Labor Expense:  82%
• Low Annual Labor Expense:  15%

• The “Annual Labor Expense Percentage” is calculated by dividing the Annual Labor Expense by Gross Revenue for each respective Expense-Reporting Franchise, adding the percentages for all Expense-Reporting Franchises, and dividing the total by the number of Expense-Reporting Franchises.

• Of the 161 Expense-Reporting Franchises, 71 (44%) exceeded the Average Annual Labor Expense of 49% and 80 (50%) exceeded the Median Annual Labor Expense of 46%.

• The Top 25% of Expense-Reporting Franchises consists of 40 Camps. Of those, 18 (45%) exceeded the Average Annual Labor Expense of 49% and 20 (50%) exceeded the Median Annual Labor Expense of 47%.

• The Bottom 25% of Expense-Reporting Franchises consists of 40 Camps. Of those, 20 (50%) exceeded the Average Annual Labor Expense of 51% and 20 (50%) exceeded the Median Annual Labor Expense of 51%.

C.  Annual Owner’s Discretionary Income

• “Annual Owner’s Discretionary Income” means the EBITDA (reported Gross Revenue less total reported expenses, plus interest, tax, depreciation, and amortization expenses), plus any reported owner’s salary which may be included in the calculation of annual earnings as reported by the franchisee.

• Reported expenses include Annual Occupancy Expenses and Annual Labor Expenses described above plus all other reported expenses which may include marketing, manager salary, merchant processing fees, royalties, building repairs and maintenance, supplies, and other expenses.

• Not all Camp Bow Wow franchises report owner’s salary amounts and those amounts may be included as part of Annual Labor Expenses, manager salary, or included in some other expense category.

All Expense-Reporting Franchises

• Average Annual Owner’s Discretionary Income:  $(14,424) (-3%)
• Median Annual Owner’s Discretionary Income:  $(22,945) (-4%)

Top 25% Expense-Reporting Franchises

• Average Annual Owner’s Discretionary Income:  $(7,471) (-1%)
• Median Annual Owner’s Discretionary Income:  $(18,436) (-2%)

Bottom 25% Expense-Reporting Franchises

• Average Annual Owner’s Discretionary Income:  $(40,126) (-13%)
• Median Annual Owner’s Discretionary Income:  $(42,650) (-13%)

• Average percentages in this chart represent the average percent of revenue, and are calculated by dividing Owner’s Discretionary Income by annual Gross Revenue for each Expense-Reporting Franchise, adding the percentages for all Expense-Reporting Franchises, and dividing the total by the number of Expense-Reporting Franchises.

• Median percentages in this chart represent the median percent of revenue, and are calculated by dividing Owner’s Discretionary Income by annual Gross Revenue for each Expense-Reporting Franchise and taking the middle value of all Expense-Reporting Franchises.

• Of the 161 Expense-Reporting Franchises, 77 (48%) exceeded the Average Annual Owner’s Discretionary Income of $(14,424) and 80 (50%) exceeded the Median Annual Owner’s Discretionary Income of $(22,945).

• The Top 25% of Expense-Reporting Franchises consists of 40 Camps. Of those, 20 (50%) exceeded the Average Annual Owner’s Discretionary Income of $(7,471) and 20 (50%) exceeded the Median Annual Owner’s Discretionary Income of $(18,436).

• The Bottom 25% of Expense-Reporting Franchises consists of 40 Camps. Of those, 19 (48%) exceeded the Average Annual Owner’s Discretionary Income of $(40,126) and 19 (48%) exceeded the Median Annual Owner’s Discretionary Income of $(42,650).

Part 3 – System-Wide Gross Revenue

• Part 3 sets forth the aggregate Gross Revenue for all Camp Bow Wow locations that were open and operating for any length of time for the 2016-2020 calendar years, including both franchised and corporate-owned locations as well as those locations that may have closed during a particular year.

2020 (unaudited)

• Consolidated Gross Revenue for Camp Services, Dog Training Services, Retail, and All Other Approved Products and Services:  $95,433,113
• Franchisee/Franchisor Locations:  175/10
• % Increase in Gross Revenue from Year to Year (Unaudited):  -34%

2019 (unaudited)

• Consolidated Gross Revenue for Camp Services, Dog Training Services, Retail, and All Other Approved Products and Services:  $144,515,606
• Franchisee/Franchisor Locations:  163/11
• % Increase in Gross Revenue from Year to Year (Unaudited):  12%

2018 (unaudited)

• Consolidated Gross Revenue for Camp Services, Dog Training Services, Retail, and All Other Approved Products and Services:  $129,017,359
• Franchisee/Franchisor Locations:  153/12
• % Increase in Gross Revenue from Year to Year (Unaudited):  14%

2017 (unaudited)

• Consolidated Gross Revenue for Camp Services, Dog Training Services, Retail, and All Other Approved Products and Services:  $115,593,475
• Franchisee/Franchisor Locations:  137/9
• % Increase in Gross Revenue from Year to Year (Unaudited):  9%

2016 (unaudited)

• Consolidated Gross Revenue for Camp Services, Dog Training Services, Retail, and All Other Approved Products and Services:  $101,688,137
• Franchisee/Franchisor Locations:  128/9
• % Increase in Gross Revenue from Year to Year (Unaudited):  13%

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