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

• Section I – Estimated initial investment (franchise costs) for a Wild Birds Unlimited franchise, based on Item 7 of the company’s 2022 FDD

• Section II – Initial franchise fee, royalty fee, and marketing fee for a Wild Birds Unlimited franchise, based on Items 5 and 6 of the company’s 2022 FDD

• Section III – Number of franchised and company-owned Wild Birds Unlimited outlets at the start of the year and the end of the year for 2019, 2020, and 2021, based on Item 20 of the company’s 2022 FDD

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

• Section V – Presentation and analysis of Wild Birds Unlimited’s financial performance representations (average revenues and/or profits), based on Item 19 of the company’s 2022 FDD, including information on the:

• fiscal years 2019, 2020, and 2021 average gross sales for those Wild Birds Unlimited franchises open and operational for at least 24 consecutive months as of December 31, 2019, December 31, 2020, and December 31, 2021, 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 2019, 2020, and 2021

• summary of gross sales for the first full 12 months of operation for stores that opened between January 1, 2016 and December 31, 2020 and that had completed at least 12 full months of operation as of December 31, 2021

• summary of gross sales for the second full 12 months of operation for stores that opened between January 1, 2016 and December 31, 2019 and that had completed at least their second 12 full months of operation as of December 31, 2021

• average monthly sales volume percentage that contributed to the 2021 gross sales for those Wild Birds Unlimited franchises open and operational for all of 2021 and opened prior to January 1, 2021

• 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 2018, 2019, and 2020, as well as the average of advertising, wage expenses, and cost of goods sold incurred by first year stores that completed their first full year of operation in 2016, 2017, 2018, 2019, or 2020

• fiscal years 2018, 2019, and 2020 average owner’s discretionary cash flow achieved by stores as reported by franchisees that were operating the previous full 24 months

• Section VI – Key ratios, comparables, computations, and analyses for the Wild Birds Unlimited franchise opportunity (exclusive content for Platinum subscribers)

Section I – Wild Birds Unlimited Franchise Costs

• Wild Birds Unlimited franchise costs, based on Item 7 of the company’s 2022 FDD:

• Initial Franchise Fee:  $40,000 (new franchisees); $20,000 (existing franchisees)
• Training:  $5,000; $0 if you are an existing franchisee opening an additional franchise
• Travel, Meals, Lodging:  $500 to $6,000
• Lease Deposit:  $3,000 to $7,500
• First Month’s Rent:  $3,000 to $7,500
• Leasehold Improvements:  $22,174 to $75,854
• Insurance:  $500 to $3,000
• Legal/Accounting:  $750 to $9,750
• Office Equipment:  $8,948 to $12,984
• Signs:  $5,200 to $9,533
• Advertising:  $9,197 to $11,447 (new franchisees); $8,197 to $10,447 (existing franchisees)
• Retail Fixtures:  $19,558 to $37,494
• Opening Inventory:  $31,845 to $39,180
• Technology:  $1,899
• Miscellaneous Expenses:  $4,778 to $7,052
• Additional Funds for First 3 Months:  $41,570 to $51,570
• Total Estimated Wild Birds Unlimited Franchise Costs:  $197,919 to $325,763 (new franchisees); $171,919 to $299,763 (existing franchisees)

Section II – Wild Birds Unlimited’s Initial Franchise Fee, Royalty Fee, and Marketing Fee

• Wild Birds Unlimited’s initial franchise fee, royalty fee, and marketing fee, based on Items 5 and 6 of the company’s 2022 FDD:

• Initial Franchise Fee:  $40,000 (new franchisees); $20,000 (existing franchisees)
• Royalty:  4% of Gross Sales
• Local Advertising Expenditure:  a minimum of 2% of Gross Sales
• Regional/Local Advertising Cooperative or Local Advertising Group:  a maximum of 2% of Gross Sales
• Advertising Fund:  1% of Gross Sales

Section III – Number of Franchised and Company-Owned Wild Birds Unlimited Outlets

Franchised

2019

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

2020

• Outlets at the Start of the Year:  343
• Outlets at the End of the Year:  348
• Net Change:  +5

2021

• Outlets at the Start of the Year:  348
• Outlets at the End of the Year:  352
• Net Change:  +4

Company-Owned

2019

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

2020

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

2021

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

Section IV – Background Information on the Wild Birds Unlimited Franchise

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

Commits to Further Growth in Canada

1.  In mid-May 2021, Wild Birds Unlimited said that it planned to continue to build on its successes in Canada. Paul Picket, chief development officer of Wild Birds Unlimited, said, “Our mission is to bring people and nature together, and to bring joy into our customers’ lives. That mission extends beyond the United States. We have been thrilled to see the success so many of our Canadian franchisees are experiencing and look forward to further committing to our mission with more expansion in the future.”

2.  To do just that, Wild Birds Unlimited joined the Canadian Franchise Association at the beginning of 2021, with plans of strengthening its foundation in the country. The franchise also announced a two-year sponsorship agreement with Birds Canada to support the Gardening for Birds conservation initiative starting May 5. Both of those efforts added to multiple Canadian franchisee success stories despite challenges all business owners faced throughout the past year.

3.  Kindell Tolmie, recently featured in Franchise Business Review’s “Powerful Women in Franchising,” hosted online educational events to maintain engagement with her community in Ontario. Kurtis Huston opened his Wild Birds Unlimited store in British Columbia during the pandemic. Like Tolmie, he credits the support of the WBU Franchise Support Center for much of the success, regardless of geography. Huston said, “I couldn’t be more proud to be part of the team, and without all of their support this would not be possible.”

On Pace for Another Year of Impressive Growth

4.  At the beginning of June 2021, Wild Birds Unlimited continued its franchise development and sales efforts with impressive early progress towards its 2021 targets. After a successful 2020 with the addition of eight new franchise locations and 22-percent same-store sales growth despite the challenges of the pandemic, Wild Birds Unlimited was on pace to outperform those figures.

5.  The franchise reported several metrics from the first quarter of 2021 indicating its ability to build on the successes of 2020. The brand had already awarded two new locations, with increases in both lead flow and full applications. Additionally, existing stores saw a continued trend of double digit same-store sales increase compared to the first quarter of 2020.

6.  Paul Pickett, chief development officer of Wild Birds Unlimited, said, “We were thrilled with last year’s performance, not just because of the challenges our system overcame but because of how it set the foundation for 2021. It’s exciting to see our franchise build on that foundation with both expansion and the continued success of our owners. We’re energized to have so much early success and to cultivate the trends we’re seeing for the rest of the year.”

7.  Wild Birds Unlimited expected to award another four new franchise locations by the end of the second quarter. The first quarter saw lead generation rise by 40% and a more than 80% surge in applications. The brand previously stated its aim to add 10 new franchise locations in 2021, and the combination of Q1 success and early Q2 trends would put the brand firmly on target for that goal.

8.  Pickett added, “Our team has been hard at work to continue supporting our existing franchisees while welcoming so many interested applicants. It’s clear that our recent success and the growth of the industry has generated real excitement about our model and serving the passion for birders across the country.”

Earns First Inc. 5000 Recognition

9.  At the end of August 2021, Wild Birds Unlimited staked its claim as one of North America’s top businesses after earning a placement on the annual Inc. 5000 list. Inc. Magazine released its 2021 rankings that month, with Wild Birds Unlimited appearing at No. 4446 for its first appearance in the coveted rankings. Thanks to its impressive growth in recent years, Wild Birds Unlimited’s ranking put it at No. 160 in the retail industry.

10.  Jim Carpenter, founder and CEO of Wild Birds Unlimited, said, “Inclusion on the Inc. 5000 list is always an honor, but especially this year. After a challenging year for all businesses, we’re thrilled that Wild Birds Unlimited continued its growth through innovation and passion. This is not only a sign of current success for the company, from the dedication of franchisees to the support of the Franchise Support Center, but in the possibilities and opportunities moving forward.”

11.  Each year, Inc. Magazine compiles its list of the nation’s fastest-growing private companies, based on recent revenue growth over a three-year period. Wild Birds Unlimited earned its placement with more than 60% growth from 2018 to 2020, despite the challenges of the past year.

Company History

12.  Wild Birds Unlimited was founded in 1981 by Jim Carpenter in Indianapolis, Indiana. Carpenter had always loved the hobby of bird feeding and also wanted to open his own business. Carpenter started Wild Birds Unlimited to share his hobby with others and offer the best bird feeding products at an affordable price.

13.  The first store was a success and Carpenter began franchising in 1983. Over the next decade, Carpenter did not really expand the business, although it was successful. Then in the early 1990s, Carpenter decided to shift focus and wanted to take his business more seriously. He hired a strategic advisory group and Wild Birds Unlimited’s growth took off. Today, there are Wild Birds Unlimited shops across the United States and Canada.

Entrepreneur’s Franchise 500

14.  Wild Birds Unlimited ranked No. 188 on Entrepreneur’s 2022 Franchise 500 list.

Section V – Financial Performance Representations (Average Revenues and/or Profits) for the Wild Birds Unlimited Franchise (Item 19, 2022 FDD)

• 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 40 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

2019

• Number of Stores Operating at Least 2 Full Consecutive Years as of December 31, 2019:  294
• Number of Stores Included in This Schedule:  294
• Time Period Covered:  1/1/2019 to 12/31/2019
• System-wide Average Same Store Sales Percent Change:  7.94%
• Number/Percentage of Stores Exceeding Average Same Store Sales Percent Change:  133/45.24%
• System-wide Median Same Store Sales Percent Change:  6.88%
• System-wide Range of Same Store Sales Percent Change:  (18.95%) to 81.18%

2020

• Number of Stores Operating at Least 2 Full Consecutive Years as of December 31, 2020:  305
• Number of Stores Included in This Schedule:  305
• Time Period Covered:  1/1/2020 to 12/31/2020
• System-wide Average Same Store Sales Percent Change:  22.19%
• Number/Percentage of Stores Exceeding Average Same Store Sales Percent Change:  135/44.26%
• System-wide Median Same Store Sales Percent Change:  20.63%
• System-wide Range of Same Store Sales Percent Change:  (19.86%) to 109.51%

2021

• Number of Stores Operating at Least 2 Full Consecutive Years as of December 31, 2021:  313
• Number of Stores Included in This Schedule:  313
• Time Period Covered:  1/1/2021 to 12/31/2021
• System-wide Average Same Store Sales Percent Change:  17.38%
• Number/Percentage of Stores Exceeding Average Same Store Sales Percent Change:  147/46.96%
• System-wide Median Same Store Sales Percent Change:  16.02%
• System-wide Range of Same Store Sales Percent Change:  (20.33%) to 66.51%

Schedule 2 – Fiscal Year 2019-2021 Gross Sales

2019

• Number of Stores Operating for at Least 24 Full Months as of December 31, 2019:  294
• Number of Stores Included in This Schedule:  294
• Time Period Covered:  1/1/2019 to 12/31/2019
• System-wide Average Gross Sales:  $588,274
• Number/Percentage of Stores Exceeding Average Gross Sales:  109/37.07%
• System-wide Median Gross Sales:  $510,328
• System-wide Range of Actual Gross Sales:  $84,875 to $1,929,473

2020

• Number of Stores Operating for at Least 24 Full Months as of December 31, 2020:  305
• Number of Stores Included in This Schedule:  305
• Time Period Covered:  1/1/2020 to 12/31/2020
• System-wide Average Gross Sales:  $687,516
• Number/Percentage of Stores Exceeding Average Gross Sales:  122/40.00%
• System-wide Median Gross Sales:  $618,843
• System-wide Range of Actual Gross Sales:  $154,339 to $2,422,705

2021

• Number of Stores Operating for at Least 24 Full Months as of December 31, 2021:  313
• Number of Stores Included in This Schedule:  313
• Time Period Covered:  1/1/2021 to 12/31/2021
• System-wide Average Gross Sales:  $784,782
• Number/Percentage of Stores Exceeding Average Gross Sales:  120/38.34%
• System-wide Median Gross Sales:  $695,377
• System-wide Range of Actual Gross Sales:  $162,802 to $2,478,804

Schedule 3 – Total Number of Stores That Achieved Certain Annual Gross Sales Levels From 2019 Through 2021

• The table below does not include stores that completed their first full calendar year of operations in the given year.

$0.00 – $250,000

• 2019:  22
• 2020:  12
• 2021:  5

$250,000.01 – $500,000

• 2019:  114
• 2020:  84
• 2021:  66

$500,000.01 – $750,000

• 2019:  93
• 2020:  112
• 2021:  108

$750,000.01 – $1,000,000

• 2019:  35
• 2020:  51
• 2021:  68

$1,000,000.01 – $1,500,000

• 2019:  25
• 2020:  36
• 2021:  49

$1,500,000.01 – $2,000,000

• 2019:  5
• 2020:  7
• 2021:  14

Over $2,000,000

• 2019:  0
• 2020:  3
• 2021:  3

Total

• 2019:  294
• 2020:  305
• 2021:  313

Schedule 4 – First and Second 12 Months Gross Sales

• This Schedule 4 contains a summary of first and second full 12-month Gross Sales for stores that opened between January 1, 2016 and December 31, 2020, and that had completed at least 12 full months of operation as of December 31, 2021.

First 12 Months of Gross Sales

• Given that the majority of Wild Birds Unlimited stores do not open on the first day of the month, the financial performance numbers noted below reflect sales information for months 2 through 13 of operation to ensure that full 12 months of sales information is included for all stores.

Summary of Stores Opened Between January 1, 2016 and December 31, 2020:

• Number of Franchised Stores Included in Schedule 4:  69
• Average First 12 Months Gross Sales:  $263,652
• Median First 12 Months Gross Sales:  $240,129
• Range of First 12 Months Gross Sales:  $85,849 to $656,935
• Number/Percentage of Stores Exceeding the Average:  29/42.03%

Second 12 Months of Gross Sales

• This portion of Schedule 4 contains a summary of Gross Sales data for the second full 12-month period of operation for stores that opened between January 1, 2016 and December 31, 2020, and that had completed at least 24 full months of operation as of December 31, 2021.

• Given that the majority of Wild Birds Unlimited stores do not open on the first day of the month, the financial performance numbers noted below reflect sales information for months 14 through 25 of operation to ensure that full 12 months of sales information is included for all stores.

Summary of Stores Opened Between January 1, 2016 and December 31, 2019:

• Number of Franchised Stores Included in Schedule 4:  63
• Average Second 12 Months Gross Sales:  $345,144
• Median Second 12 Months Gross Sales:  $311,446
• Range of Second 12 Months Gross Sales:  $129,748 to $664,072
• Number/Percentage of Stores Exceeding the Average:  32/50.79%

 Schedule 5 – Fiscal Year 2021 Monthly Percentages

• The following is a summary of the percentage that, each month, contributed to the fiscal year 2021 Gross Sales for the 313 stores that had been open and in operation for all of 2021 and opened prior to January 1, 2021.

• To obtain these monthly percentage breakdowns, the franchisor added up the total Gross Sales reported by these franchised stores for each month in 2021, and then divided that total monthly Gross Sales figure by the total annual 2021 Gross Sales figure as reported by these franchised stores for the entire 12-month period in the fiscal year 2021.

• January:  7.84%
• February:  8.62%
• March:  9.03%
• April:  9.39%
• May:  10.91%
• June:  9.06%
• July:  8.24%
• August:  7.15%
• September:  6.00%
• October:  6.17%
• November:  7.67%
• December:  9.92%
• Total:  100%

Schedule 6 – Cost of Goods Sold

• Cost of Goods Sold is defined as the actual out-of-pocket expense to acquire merchandise held for resale, including shipping.

2018

• Number of Stores Open for at Least 24 Months as of December 31, 2018:  273
• Number of Stores Included in Schedule 6:  259
• Average Cost of Goods Sold:  46.79%
• Number/Percentage of Stores Exceeding Average Cost of Goods Sold:  124/47.88%
• Median Cost of Goods Sold:  46.63%
• Range of Actual Cost of Goods Sold:  37.60% to 57.95%

2019

• Number of Stores Open for at Least 24 Months as of December 31, 2019:  294
• Number of Stores Included in Schedule 6:  280
• Average Cost of Goods Sold:  46.60%
• Number/Percentage of Stores Exceeding Average Cost of Goods Sold:  138/49.29%
• Median Cost of Goods Sold:  46.52%
• Range of Actual Cost of Goods Sold:  36.08% to 55.56%

2020

• Number of Stores Open for at Least 24 Months as of December 31, 2020:  305
• Number of Stores Included in Schedule 6:  294
• Average Cost of Goods Sold:  46.84%
• Number/Percentage of Stores Exceeding Average Cost of Goods Sold:  149/50.68%
• Median Cost of Goods Sold:  46.91%
• Range of Actual Cost of Goods Sold:  34.15% to 60.33%

• The merchandise sold at Wild Birds Unlimited stores is classified into the following three categories:

• Bird seed:  Consumable bird feeding products, such as seed and suet.
• Feeders:  Bird feeders, houses and baths, hanging hardware, and other miscellaneous items used in delivering food products to birds and other wildlife.
• Gifts:  Nature related books, jewelry, apparel, figurines, thermometers, optics, and other related decorative items featuring a nature theme.

• The Cost of Goods Sold as a percentage of Gross Sales will vary among the product categories and from product to product within each category, making the overall average and median percentage highly dependent on the specific product mix chosen by each store.

First Year Advertising Expense (as a Percentage of Gross Sales)

• Advertising expense is defined as the out-of-pocket expense that franchisees spend to market their store, including the cost of printing and mailing customer flyers; television, radio, newspaper, and direct-mail advertising. You may decide to place other related expenses into this expense category.

• Based on 2016, 2017, 2018, 2019, or 2020 calendar year financial statements from 66 franchised stores that completed their first full calendar year of operation as of 12/31/16, 12/31/17, 12/31/18, 12/31/19, or 12/31/20:

• Average Advertising Expense:  8.47%
• Range:  2.67% to 17.30%
• Median:  8.32%
• Number/Percentage of Stores Exceeding Average Advertising Expense:  31/46.97%

• The advertising expense as a percentage of total Gross Sales will vary from market to market depending on the cost of media advertising and the personal decisions of individual franchisees.

First Year Wage Expense (as a Percentage of Gross Sales)

• Wage expense is defined as the out-of-pocket expense that franchisees spend to hire non-owners. You may decide to place other related expenses into this expense category.

• Not included in this category are payroll taxes, workers’ compensation, insurance, employee training, employee benefits, or any other employee associated costs.

• Based on 2016, 2017, 2018, 2019, or 2020 calendar year financial statements from 66 franchised stores that completed their first full calendar year of operation as of 12/31/16, 12/31/17, 12/31/18, 12/31/19, or 12/31/20:

• Average Wage Expense:  11.27%
• Range:  1.23% to 30.52%
• Median:  10.14%
• Number/Percentage of Stores Exceeding Average Wage Expense:  26/39.39%

• The wage expense as a percentage of total Gross Sales will vary from market to market depending on the cost of hiring employees and the personal decisions of individual franchisees.

First Year Cost of Goods Sold (as a Percentage of Gross Sales) – Businesses in Operation for Less Than 24 Months

• Based on 2016, 2017, 2018, 2019, or 2020 calendar year financial statements from 66 franchised stores that completed their first full calendar year of operation as of 12/31/16, 12/31/17, 12/31/18, 12/31/19, or 12/31/20:

• Average Cost of Goods Sold:  47.97%
• Range:  40.06% to 56.60%
• Median:  48.62%
• Number/Percentage of Stores Exceeding Average Cost of Goods Sold:  37/56.06%

Schedule 7 – Fiscal Year 2018, 2019, and 2020 Owner’s Discretionary Cash Flow

2018

• Number of Stores in Operation for at Least 24 Months as of December 31, 2018:  273
• Number of Stores Included in Schedule 7:  259
• Date Range Stores Opened:  1/1/1981 to 12/31/2016
• System-wide Average Owner’s Discretionary Cash Flow:  $95,546
• Number/Percentage of Stores Exceeding Average Owner’s Discretionary Cash Flow:  103/39.77%
• System-wide Median Owner’s Discretionary Cash Flow:  $77,214
• System-wide Range of Actual Owner’s Discretionary Cash Flow:  $(42,882) to $590,727

2019

• Number of Stores in Operation for at Least 24 Months as of December 31, 2019:  294
• Number of Stores Included in Schedule 7:  280
• Date Range Stores Opened:  1/1/1981 to 12/31/2017
• System-wide Average Owner’s Discretionary Cash Flow:  $96,862
• Number/Percentage of Stores Exceeding Average Owner’s Discretionary Cash Flow:  110/39.29%
• System-wide Median Owner’s Discretionary Cash Flow:  $74,721
• System-wide Range of Actual Owner’s Discretionary Cash Flow:  $(30,587) to $622,959

2020

• Number of Stores in Operation for at Least 24 Months as of December 31, 2020:  305
• Number of Stores Included in Schedule 7:  294
• Date Range Stores Opened:  1/1/1981 to 12/31/2018
• System-wide Average Owner’s Discretionary Cash Flow:  $135,041
• Number/Percentage of Stores Exceeding Average Owner’s Discretionary Cash Flow:  117/39.80%
• System-wide Median Owner’s Discretionary Cash Flow:  $112,992
• System-wide Range of Actual Owner’s Discretionary Cash Flow:  $(29,227) to $848,381

Section VI – Wild Birds Unlimited Franchise Ratios, Comparables, Computations, and Analyses (Exclusive Content for Platinum Subscribers) ⬇️