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FDD Talk: How Much Does a Central Bark Franchise Make (Average Revenues and/or Profits)?

Last updated on April 27, 2022 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 Central Bark franchise opportunity, including relevant news updates
  • Section II – Estimated initial investment for a Central Bark 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 Central Bark franchise, based on Items 5 and 6 of the company’s 2021 FDD
  • Section IV – Number of franchised and company-owned Central Bark 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 Central Bark’s financial performance representations, based on Item 19 of the company’s 2021 FDD, including information on the:
  • 2019 and 2020 annual gross sales of all 23 franchised Central Bark facilities that were open for at least one full year as of December 31, 2019, and that remained open as of December 31, 2020
  • 2019 and 2020 annual gross sales of the 3 franchised Central Bark facilities that opened during 2019 and were open for at least one full year as of December 31, 2020
  • calendar month by calendar month comparison of gross sales for each franchised Central Bark facility that opened during 2020, for each facility’s first four months of operations
  • 2019 and 2020 system-wide breakdown of expenses (building maintenance, insurance, licenses and permits, marketing fund contributions, payroll expenses, professional fees, rent, royalty fee, supplies, telephone, utilities) for all franchised Central Bark facilities open for at least one full year as of the applicable fiscal year end
  • 2019 and 2020 system-wide revenue breakdown (day care, sleepovers, grooming, all other revenue streams) for all franchised Central Bark facilities open for at least one full year as of the applicable fiscal year end

Section I – Background Information

18 Things You Need to Know About the Central Bark Doggy Day Care Franchise

Receives Strategic Investment from NewSpring

America's Most Lucrative Franchises of the Year

1.  In mid-December 2021, NewSpring, a family of private equity strategies, announced that NewSpring Franchise, the firm’s fifth and newest strategy focused on innovative franchise and multi-unit concepts, has completed its strategic investment partnership with Central Bark, the doggy day care industry pioneer. Terms of the deal were not disclosed.

2.  The Central Bark franchise system was founded by Jackie Jordan and Chris Gaba in 2003 and for nearly 20 years, the brand has drawn in dogs and their owners across the country to experience its Enrichment Doggy Day Care, which combines Central Bark’s industry-leading doggy day care expertise with the latest in canine behavioral science.

3.  Since beginning to franchise, Central Bark has grown to more than 35 units across more than a dozen states (at the time of the announcement) and built its reputation on providing a healthy and balanced blend of exercise, social group play, learning, rest, and “TLC” to help dogs be healthy, happy, calm, and well-rounded members of the family. Additionally, Central Bark also offers dog boarding, baths, grooming, a retail market, training, and more.

4.  By partnering with NewSpring, Central Bark has positioned itself to accelerate growth, increase brand awareness, and strengthen its mission to provide an environment where all people and dogs feel safe, valued, respected, and loved. The partnership will also afford Central Bark with increased access to capital and additional resources needed to bolster its infrastructure while maximizing the profitability and success of its franchise network.

5.  Chris Gaba, co-founder of Central Bark, said, “Central Bark is beyond excited to partner with NewSpring. They’re dog people like us, through and through, and their wealth of knowledge and experience across the broad spectrum of franchising is what’s going to help elevate Central Bark to the next level. The past 18 years in franchising have been an amazing ride and we would not change a thing. We’re here and thriving because of our amazing, passionate, and dedicated team of franchisees and corporate staff, and I can’t wait to see us build upon that incredible foundation.”


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6.  As part of the agreement, Central Bark co-founders Chris Gaba and Jackie Jordan will continue to oversee day-to-day operations of the brand while working with NewSpring to help fuel company growth and profitability. Together, they will continue to provide best-in-class franchisee support while making strategic investments in technology and operational efficiencies to maximize the network’s success. NewSpring hopes to help Gaba and Jordan grow Central Bark to 200-350 locations within the next five years.

7.  Patrick Sugrue, NewSpring general partner, said, “At NewSpring, we look to partner with brands that have redefined a business model, have a well-established customer base, and are poised for smart growth. Central Bark checks all those boxes, and then some. Central Bark differentiates itself from other dog day care concepts because of their steadfast commitment to whole dog care and canine behavioral science. They’ve done a tremendous job of expanding strategically into priority growth markets and are well-positioned to develop even faster across both existing and new territories. We’re thrilled to partner with Jackie, Chris, and the entire Central Bark team to help the brand reach that next level.”

8.  The strategic capital investment in Central Bark demonstrates the consistent approach of NewSpring Franchise, led by NewSpring general partners Satya Ponnuru and Patrick Sugrue, to invest in established brands with a strong customer value proposition and proven unit-level economics. Having successfully partnered with over 180 businesses in the lower-middle market for over 20 years, NewSpring’s team of operational experts and value-add approach is well-positioned to serve a wide range of growing companies to accelerate growth.

9.  As part of the transaction, Satya Ponnuru and Patrick Sugrue will join the Central Bark board of directors.

New Location

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10.  In late January 2021, Central Bark opened its first location in West Columbia, South Carolina. The 11,000 square-foot space located at 2931 Augusta Road is owned and operated by local residents Anthony and Courtney Girolamo. Grand opening festivities were open to the public, observing pandemic health and safety recommendations, and guest pups were leashed, socialized, and vaccinated.

11.  Anthony Girolamo, co-owner of Central Bark West Columbia, said, “I grew up with dogs and the thought of being around them all day, every day sounded really good to me. Being in retail for over a decade gave me a solid background in customer service and operations and with Central Bark’s successful corporate process and structure, joining the system made perfect sense for us. Now I get to combine my people skills with my passion for animals.”

12.  Along with a staff of six, Anthony Girolamo, a 14-year veteran of Publix Super Markets, runs the day-to-day operations at Central Bark while Courtney Girolamo, a high school principal and math teacher, will continue her career in education. The couple believes everyone’s fur babies deserve the same top-notch care as those in the Girolamo household: two Great Danes, a three-legged shepherd mix, and five cats. Their two human children are teenagers, Maddie and Ryan.

13.  Chris Gaba, co-founder of Central Bark, said, “There is something simple and beautiful about a well-adjusted dog that everyone can relate to – it’s very strong and powerful. We are thrilled to introduce Central Bark to West Columbia residents – two and four-legged alike – and look forward to Anthony and Courtney growing their business. We encourage everyone to stop by February 6 for the grand opening or as soon as possible.”

14.  As part of its grand opening celebration, Central Bark West Columbia opened its 8,000 square-foot indoor facility and 3,000 square-foot outdoor play area for public tours. Dogs – as long as they’re leashed, socialized, and vaccinated – were able to take part in free, interactive enrichment activities including snuffle mats, colored ball pools, puzzles, and other games. Guests could register for two free days of day care at Central Bark, and there was dog adoptions presented by Final Victory Animal Rescue. Adhering to local guidelines, Central Bark Columbia maintained social distancing recommendations and followed local COVID-19 protocols during its grand opening.

15.  Gaba added, “There’s always opportunity in change. The rise in dog adoptions since the onset of the pandemic has allowed Central Bark to continue our growth trajectory. Opening West Columbia is the latest of nearly a dozen new locations planned through the end of the year, positioning us as a brand with tremendous growth potential well into the future.”

Company History

16.  Central Bark was founded in 2003 by Jackie Jordan and Chris Gaba in Florida. Jordan and Gaba formed Central Bark after they combined their separate businesses, Doggy Day Care, Inc. (owned by Jordan) and Central Bark Dog Day Care and Training Center, Inc. (owned by Gaba). Doggy Day Care, Inc. was founded in 1997 while Gaba opened the first Central Bark Dog Day Care in 1999. Both Jordan and Gaba started their respective businesses to provide quality day care and training to dogs and their owners. At the time, good doggy daycares were hard to find.

17.  A year after opening the first Central Bark, Jordan and Gaba started franchising. Over the past decade, Central Bark has grown slowly but steadily. Today, there are Central Bark locations across a dozen states.

Entrepreneur’s Franchise 500

18.  Central Bark did not rank on Entrepreneur’s 2022 Franchise 500 list.

Section II – Estimated Costs

  • Detailed estimates of Central Bark 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 Central Bark’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

2018

  • Outlets at the Start of the Year:  24
  • Outlets at the End of the Year:  24
  • Net Change:  0

2019

  • Outlets at the Start of the Year:  24
  • Outlets at the End of the Year:  26
  • Net Change:  +2

2020

  • Outlets at the Start of the Year:  26
  • Outlets at the End of the Year:  31
  • Net Change:  +5

Company-Owned

2018

  • Outlets at the Start of the Year:  1
  • Outlets at the End of the Year:  1
  • Net Change:  0

2019

  • Outlets at the Start of the Year:  1
  • Outlets at the End of the Year:  1
  • Net Change:  0

2020

  • Outlets at the Start of the Year:  1
  • Outlets at the End of the Year:  1
  • Net Change:  0

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

Part 1 – Annual Gross Sales During 2019 and 2020 for All Franchised Central Bark Facilities Open at Least One Full Year as of December 31, 2019

  • This Part 1 includes the 2019 and 2020 annual Gross Sales of all 23 franchised Central Bark facilities that were open for at least one full year as of December 31, 2019, and that remained open as of December 31, 2020.

Store 1

  • 2019 Gross Sales:  $721,576
  • 2020 Gross Sales:  $678,545
  • Central Bark Facility Opening Date:  December 1997

Store 2

  • 2019 Gross Sales:  $915,131
  • 2020 Gross Sales:  $741,715
  • Central Bark Facility Opening Date:  March 1999

Store 3

  • 2019 Gross Sales:  $794,764
  • 2020 Gross Sales:  $725,624
  • Central Bark Facility Opening Date:  August 2005

Store 4

  • 2019 Gross Sales:  $210,045
  • 2020 Gross Sales:  $203,032
  • Central Bark Facility Opening Date:  August 2006

Store 5

  • 2019 Gross Sales:  $320,129
  • 2020 Gross Sales:  $318,695
  • Central Bark Facility Opening Date:  July 2005

Store 6

  • 2019 Gross Sales:  $814,351
  • 2020 Gross Sales:  $739,785
  • Central Bark Facility Opening Date:  December 2006

Store 7

  • 2019 Gross Sales:  $849,669
  • 2020 Gross Sales:  $737,068
  • Central Bark Facility Opening Date:  September 2006

Store 8

  • 2019 Gross Sales:  $387,355
  • 2020 Gross Sales:  $296,049
  • Central Bark Facility Opening Date:  November 2006

Store 9

  • 2019 Gross Sales:  $665,499
  • 2020 Gross Sales:  $361,358
  • Central Bark Facility Opening Date:  June 2007

Store 10

  • 2019 Gross Sales:  $340,980
  • 2020 Gross Sales:  $315,080
  • Central Bark Facility Opening Date:  September 2007

Store 11

  • 2019 Gross Sales:  $293,313
  • 2020 Gross Sales:  $256,431
  • Central Bark Facility Opening Date:  March 2008

Store 12

  • 2019 Gross Sales:  $651,186
  • 2020 Gross Sales:  $654,441
  • Central Bark Facility Opening Date:  July 2007

Store 13

  • 2019 Gross Sales:  $483,070
  • 2020 Gross Sales:  $389,394
  • Central Bark Facility Opening Date:  March 2008

Store 14

  • 2019 Gross Sales:  $558,862
  • 2020 Gross Sales:  $415,221
  • Central Bark Facility Opening Date:  March 2009

Store 15

  • 2019 Gross Sales:  $732,404
  • 2020 Gross Sales:  $551,149
  • Central Bark Facility Opening Date:  February 2009

Store 16

  • 2019 Gross Sales:  $581,934
  • 2020 Gross Sales:  $423,084
  • Central Bark Facility Opening Date:  March 2008

Store 17

  • 2019 Gross Sales:  $590,804
  • 2020 Gross Sales:  $503,358
  • Central Bark Facility Opening Date:  August 2008

Store 18

  • 2019 Gross Sales:  $380,220
  • 2020 Gross Sales:  $354,471
  • Central Bark Facility Opening Date:  October 2008

Store 19

  • 2019 Gross Sales:  $614,362
  • 2020 Gross Sales:  $491,729
  • Central Bark Facility Opening Date:  July 2009

Store 20

  • 2019 Gross Sales:  $428,206
  • 2020 Gross Sales:  $392,926
  • Central Bark Facility Opening Date:  June 2013

Store 21

  • 2019 Gross Sales:  $859,296
  • 2020 Gross Sales:  $707,195
  • Central Bark Facility Opening Date:  April 2014

Store 22

  • 2019 Gross Sales:  $208,859
  • 2020 Gross Sales:  $119,091
  • Central Bark Facility Opening Date:  December 2017

Store 23

  • 2019 Gross Sales:  $446,248
  • 2020 Gross Sales:  $368,492
  • Central Bark Facility Opening Date:  April 2014

Total

  • 2019 Gross Sales:  $12,848,263
  • 2020 Gross Sales:  $10,743,933

Average

  • 2019 Gross Sales:  $558,620
  • 2020 Gross Sales:  $467,128
  • As used throughout this Item 19,“Gross Sales” means the total revenues for all services rendered and for the sale of all merchandise including, but not limited to, sales from the Central Bark facility, kiosk, cart, vending machines, catalogues, cable television, any online presence or mail order, sold to or for a franchisee’s customers whether for cash or credit, after deducting credits for return, repair or replacement goods, all allowances expressly granted to such customers (such as trade and quantity discounts), excise taxes, sales and/or use and equivalent taxes paid by the franchisee, provided that such credits and taxes shall first have been included in the computation of Gross Sales for the same or prior periods.
  • During 2019, the median annual Gross Sales of these 23 franchised Central Bark facilities was $581,934, and they had a range of Gross Sales of $208,859 to $915,131. During 2019, 13 of the 23 franchised Central Bark facilities (56.5%) exceeded the average Gross Sales.
  • During 2020, the median annual Gross Sales of these 23 franchised Central Bark facilities was $415,221, and they had a range of Gross Sales of $119,091 to $741,715. During 2020, 10 of the 23 franchised Central Bark facilities (43.5%) exceeded the average Gross Sales.

Part 2 – Annual Gross Sales During 2019 and 2020 for All Franchised Central Bark
Facilities Open at Least One Full Year as of December 31, 2020

  • This Part 2 includes the 2019 and 2020 annual Gross Sales of the 3 franchised Central Bark facilities that opened during 2019 and were open for at least one full year as of December 31, 2020.

Store 1

  • 2019 Gross Sales:  $47,552
  • 2020 Gross Sales:  $206,989
  • Central Bark Facility Opening Date:  August 2019

Store 2

  • 2019 Gross Sales:  $91,272
  • 2020 Gross Sales:  $308,359
  • Central Bark Facility Opening Date:  June 2019

Store 3

  • 2019 Gross Sales:  $120,525
  • 2020 Gross Sales:  $358,947
  • Central Bark Facility Opening Date:  June 2019

Total

  • 2019 Gross Sales:  $259,349
  • 2020 Gross Sales:  $874,295

Average

  • 2019 Gross Sales:  $86,450
  • 2020 Gross Sales:  $291,432
  • During 2019, the median annual Gross Sales of these 3 franchised Central Bark facilities was $91,272, and they had a range of Gross Sales of $47,552 to $120,525. During 2019, 2 of the 3 franchised Central Bark facilities (67%) exceeded the average Gross Sales.
  • During 2020, the median annual Gross Sales of these 3 franchised Central Bark facilities was $308,359, and they had a range of Gross Sales of $206,989 to $358,947. During 2020, 2 of the 3 franchised Central Bark facilities (67%) exceeded the average Gross Sales.

Part 3 – Monthly Gross Sales for the Franchised Central Bark Facilities That Opened During 2020

  • This Part 3 provides a calendar month by calendar month comparison for each franchised Central Bark facility that opened during 2020, for each facility’s first four months of operations. Therefore, these monthly Gross Sales are not for the same four month period for all five franchised Central Bark facilities.

Store 1

  • Central Bark Facility Opening Date:  February 2020
  • Month 1 Gross Sales:  $3,446
  • Month 2 Gross Sales:  $9,334
  • Month 3 Gross Sales:  $10,773
  • Month 4 Gross Sales:  $15,350

Store 2

  • Central Bark Facility Opening Date:  August 2020
  • Month 1 Gross Sales:  $887
  • Month 2 Gross Sales:  $2,805
  • Month 3 Gross Sales:  $4,061
  • Month 4 Gross Sales:  $5,700

Store 3

  • Central Bark Facility Opening Date:  November 2020
  • Month 1 Gross Sales:  $1,452
  • Month 2 Gross Sales:  $5,455
  • Month 3 Gross Sales:  $9,209
  • Month 4 Gross Sales:  $9,480

Store 4

  • Central Bark Facility Opening Date:  November 2020
  • Month 1 Gross Sales:  $1,540
  • Month 2 Gross Sales:  $6,053
  • Month 3 Gross Sales:  $10,503
  • Month 4 Gross Sales:  $16,161

Store 5

  • Central Bark Facility Opening Date:  November 2020
  • Month 1 Gross Sales:  $867
  • Month 2 Gross Sales:  $5,027
  • Month 3 Gross Sales:  $12,370
  • Month 4 Gross Sales:  $15,096

Part 4 – System-wide Breakdown of Expenses for All Franchised Central Bark Facilities Open for at Least One Full Year as of the Applicable Year Fiscal Year End

2019 % of Gross Sales

  • Building Maintenance:  1.69%
  • Insurance:  2.12%
  • Licenses and Permits:  0.07%
  • Marketing Fund Contributions:  1.96%
  • Payroll Expenses:  40.66%
  • Professional Fees:  1.42%
  • Rent:  10.23%
  • Royalty Fee:  5.33%
  • Supplies:  3.68%
  • Telephone:  0.62%
  • Utilities:  2.04%
  • Total:  69.82%

2020 % of Gross Sales

  • Building Maintenance:  1.97%
  • Insurance:  2.76%
  • Licenses and Permits:  0.03%
  • Marketing Fund Contributions:  2.01%
  • Payroll Expenses:  46.96%
  • Professional Fees:  1.44%
  • Rent:  12.52%
  • Royalty Fee:  5.35%
  • Supplies:  3.69%
  • Telephone:  0.81%
  • Utilities:  2.21%
  • Total:  79.75%
  • The system-wide breakdown of expenses does not reflect the average or median amount of expense by category of the franchised Central Bark facilities. Rather, it reflects the aggregate expenditure by category of all franchised Central Bark facilities.
  • For 2019, this includes all 23 franchised Central Bark facilities that were open for at least one full year as of December 31, 2019. For 2020, this includes all 26 franchised Central Bark facilities that were open for at least one full year as of December 31, 2020.
  • The chart above does not include certain expenses that vary significantly by location, including cost of goods sold, automobile expense, charitable contributions, dues and subscriptions, local marketing, professional development, travel and entertainment, and health and other personal insurance.
  • Additionally, not all franchisees include owner’s salary with payroll expenses nor do all franchisees report how much they pay for owner’s salary, therefore owner’s salary may be reflected in the information provided from some franchisees but not all.

Part 5 – System-wide Revenue Breakdown

2019 % of Gross Sales

  • Day Care:  64.16%
  • Sleepovers:  16.67%
  • Grooming:  12.60%
  • All Other Revenue Streams (including retail, training, sleep ‘n play, bathing, canine cab, self-wash, parties, dog walking, enrichment add-on, indoor dog park):  6.57%
  • Total:  100.00%

2020 % of Gross Sales

  • Day Care:  70.80%
  • Sleepovers:  9.55%
  • Grooming:  16.44%
  • All Other Revenue Streams (including retail, training, sleep ‘n play, bathing, canine cab, self-wash, parties, dog walking, enrichment add-on, indoor dog park):  3.21%
  • Total:  100.00%
  • The system-wide breakdown of revenue does not reflect the average or median amount of revenue by category of the franchised Central Bark facilities. Rather, it reflects the aggregate revenue by category of all franchised Central Bark facilities.
  • For 2019, this includes all 23 franchised Central Bark facilities that were open for at least one full year as of December 31, 2019. For 2020, this includes all 26 franchised Central Bark facilities that were open for at least one full year as of December 31, 2020.
  • Some Central Bark facilities have earned this amount. Your individual results may differ. There is no assurance that you will earn as much.

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