FDD Talk: Camp Bow Wow Franchise Review (Financial Performance Analysis, Costs, Fees, and More) (2024)

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 2020 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 2020 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 2017, 2018, and 2019, based on Item 20 of the company’s 2020 FDD

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

• 2019 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, 2019

• 2019 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, 2019 and submitted data to the franchisor in time to be included in this Item 19

• 2015, 2016, 2017, 2018, and 2019 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 2015-2019 calendar years

Section I – Background Information

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

Strengthens Customer Experience and Positions Brand for Growth

1. At the beginning of September 2020, Camp Bow Wow celebrated its many accomplishments and recognitions throughout the first half of 2020. Quickly responding to the evolving needs of franchise owners and pet parents alike, the 140+ million-dollar brand rapidly released new technologies and resources to better serve its communities across North America.

2. With over 180 open Camps across 42 states and Canada (at the time of the announcement), Camp Bow Wow expedited the roll out of digital processes and capabilities to improve the speed and ease of transactions for customers, while addressing health and safety considerations associated with in-person interactions. The brand rapidly debuted a secure, contactless system that eliminated the need for face-to-face payments with an online format for financial transactions, as well as introduced a digital Camper application.

3. Revised processes were additionally launched to foster the strong partnership between Camp Bow Wow’s corporate team and franchise network, and ensure open channels of communications. New tools for franchise owners included virtual trainings on topics like social distancing protocols and emergency preparedness, PPP and SBA assistance, customer communication materials, and additional operational resources.

4. On top of providing new technologies and increased levels of support for its franchise owners and customers, Camp Bow Wow’s nonprofit organization, Bow Wow Buddies Foundation, has continued its dedication to helping dogs receive proper medical care. Providing urgent funds to both homeless canines and those whose parents cannot afford their veterinary bills, the Foundation experienced a significant increase in applications due to the financial ramifications of the pandemic. Since January 2020, the Bow Wow Buddies Foundation has provided medical grants to 58 dogs in need, increasing the Foundation’s total grants to cover necessary medical care to over $600K for 500+ dogs.

5. Julie Turner, president of Camp Bow Wow, said, “Our unwavering commitment to our franchise owners and Campers is at the heart of what we do. During these unprecedented times, I have been so proud to work alongside our canine-loving franchise owners and support them in their dedication to pet parents across North America. Together we’ve streamlined operations and introduced new capabilities that have allowed us to quickly adapt the customer experience to what our two and four-legged friends need right now.”

6. Following a record franchise sales year in 2019 with a 16% increase in units sold, Camp Bow Wow has continued to propel the company forward through a series of recent accomplishments. Expanding the presence of its trusted day care and boarding franchises across North America, Camp Bow Wow has heightened its position as the leader in the pet care industry with numerous strategic partnerships in 2020:

• Opened nine new Camps nationwide with six first-time franchise owners and three multi-unit owners who have invested in multiple franchised locations;
• Expanded the brand’s presence in Texas with four new locations, and officially brought the Camp Bow Wow experience to Oregon with the debut of Camp Bow Wow Hillsboro;
• Strengthened its high-growth network with 12 franchise sales for new locations across North America.

7. A further tribute to the company’s successes in 2020, Camp Bow Wow has been awarded numerous accolades that speak to its recent developments:

• Achieved multiple honors from Franchise Update Media’s “Franchise Innovation Awards,” including:

• Received first place for the “Most Innovative Building Design, Remodel or Prototype” for Camp Bow Wow’s lobby redesign;
• Awarded first place in the “Most Innovative Use of Technology” category to celebrate Camp Bow Wow’s successful transition to digital employee training and immersive e-learning experience;
• Named second place in the “Most Innovative Service Introduction” category for Camp Bow Wow’s enrichment services program;
• As a result of the awards, Camp Bow Wow was selected as one of four finalists for Franchise Update Media’s Franchise Growth and Development Leader Award;

• Recognized by Denver Business Journal as one of the “Top Workplaces in 2020” for the corporate Camp Bow Wow office.

8. Turner added, “As the leading pet care franchise for two decades, we know that innovation is a key to success. We’re thrilled to have been recognized for that commitment, and receive so many honors for the new programs and initiatives we’ve implemented to evolve with changing trends and technologies.”

Launches Virtual Dog Walking Challenge to Raise Funds for Pups in Need

9. At the end of September 2020, The Bow Wow Buddies Foundation launched “Step Up For Pups” – a virtual walking challenge to support sick pups in need. The Bow Wow Buddies Foundation is the registered 501(c)(3) nonprofit organization of Camp Bow Wow and is dedicated to providing urgent medical care funds to dogs who are either homeless or whose parents cannot afford to pay their veterinary bills.

10. With more families, rescue groups, and shelters requesting financial assistance than ever before, the Bow Wow Buddies Foundation has experienced an over 80% increase in grant applications in 2020. To help raise funds in a safe, virtual format, the Foundation launched a 10-week walking challenge in partnership with WoofTrax, a free smartphone app that helps animal nonprofits earn donations by logging walks in the app and through challenges like “Step Up For Pups.”

11. Through November 19, pet parents across North America were invited to join “Step Up For Pups” in the WoofTrax App to help save the life of a dog in need and win prizes by simply walking their own four-legged friend. Dog lovers could sign up for the challenge through WoofTrax, wherein participants were able to log their dog walks and be entered to win prizes.

12. Participants who logged 20 dog walks that were a quarter of a mile or more in length during the 10-week challenge period were entered to win the grand prize: a $500 donation to the shelter or rescue of their choice, or a 20-Pack of Day Care at their local Camp Bow Wow.

13. Participants could increase their chance of winning and lend a paw to dogs in need by donating $5 or more to the “Step Up For Pups” challenge. Also announced weekly, challengers who logged three or more walks a week were entered to win fun prizes for themselves or their furry loved ones from sponsors including Rise Brewing Co., Nancy’s Pampered Pet Treats, Applaws Taste Toppers, Fur Pete’s Sake Apparel, K Squared Artisan Boutique, Art From Energy, Tall Tails, and more.

14. Julie Turner, president of Camp Bow Wow, said, “The Bow Wow Buddies Foundation has always been rooted in our commitment to support the health and happiness of dogs across the country. With the influx of applications we received this year, we wanted to create a safe, but fun, fundraising format that allows us all to step up together and give sick and injured dogs a second chance at life.”

15. Since 2015, the Bow Wow Buddies Foundation’s mission has been to provide financial assistance for dogs in need of emergency, life-saving medical care. Over the past five years, the Foundation has acted as a lifeline to offset the high cost of emergency veterinary care for pet parents, rescue groups, and shelters, and has helped save over 500 dogs with more than $600,000 awarded in grants.

Company History

16. Camp Bow Wow was founded in 2000 by Heidi Ganahl in Denver, Colorado. Ganahl had always wanted to start her own doggy daycare because she was unsatisfied with the traditional “kennel model,” but tragedy in her personal life halted her dreams for a few years. After getting her affairs in order and doing more research, Ganahl decided to revisit her idea for a doggy daycare and developed the concept for Camp Bow Wow. Ganahl’s idea was a summer camp for dogs – the kind of place a dog might design for himself if he could.

17. The first Camp Bow Wow was a hit and after three years, Ganahl decided to start franchising with the first franchised location opening in Castle Rock, Colorado. Over the next few years, Camp Bow Wow continued to grow and by 2010, the brand opened its 100th location. A few years later, in 2014, Camp Bow Wow was acquired by Veterinary Clinics of America (VCA, Inc.). VCA owns, operates, and manages the largest network of freestanding veterinary hospitals and veterinary-exclusive clinical laboratories in the U.S.

18. In September 2017, VCA, Inc. and subsequently Camp Bow Wow became wholly-owned subsidiaries of Mars, Incorporated. Today, there are Camp Bow Wow locations across North America.

Entrepreneur’s Franchise 500

19. Camp Bow Wow ranked No. 172 on Entrepreneur’s 2021 Franchise 500 list.

Section II – Estimated Costs

• Please click here for detailed estimates of Camp Bow Wow 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 Camp Bow Wow’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: 127
• Outlets at the End of the Year: 136
• Net Change: +9

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

Company-Owned

2017

• Outlets at the Start of the Year: 9
• Outlets at the End of the Year: 9
• Net Change: 0

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

Section V – Financial Performance Representations (Item 19, 2020 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 13 new Franchised Camps that were open less than 12 months as of December 31, 2019, and the 2 Franchised Camps that were closed during the year (both of those Camps had been open more than 12 months but were not open for the full 12-month period as of December 31, 2019).

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, 2019 to December 31, 2019 (the “Measurement Period”) for the 149 franchises that were open and operating for more than 12 months as of December 31, 2019 (“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 229 months as of December 31, 2019. The average time in operation for Revenue-Reporting Franchises is 100 months, and the median is 122 months.

• The Annual Gross Revenue tables are based on data that was reported to the franchisor by the franchise owner for 149 Revenue-Reporting Franchises.

All Revenue-Reporting Franchises