Scenthound Franchise Prices, Charges, Revenues, Earnings (2023 Evaluation)

On this unique Franchise Chatter FDD Discuss publish, you’ll study the next:

Part I – Estimated preliminary funding (franchise prices) for a Scenthound franchise, primarily based on Merchandise 7 of the corporate’s 2022 FDD

Part II – Preliminary franchise price, royalty price, and advertising price for a Scenthound franchise, primarily based on Objects 5 and 6 of the corporate’s 2022 FDD

Part III – Variety of franchised and company-owned Scenthound shops at the beginning of the yr and the tip of the yr for 2019, 2020, and 2021, primarily based on Merchandise 20 of the corporate’s 2022 FDD

Part IV – Information updates on the Scenthound franchise alternative

Part V – Presentation and evaluation of Scenthound’s monetary efficiency representations (common revenues and/or income), primarily based on Merchandise 19 of the corporate’s 2022 FDD, together with info on the:

• common, median, highest, and lowest gross income from January 1, 2022 to March 31, 2022 for the 11 franchised Scenters which have been open and working for six months or extra, and 5 Affiliate-Owned Models which have been open and working for six months or extra

• common, median, highest, and lowest month-to-month gross income from the first to twelfth month open for the 11 franchised Scenters which have been open and working for six months or extra

• sure expense info (wages and payroll, together with taxes and advantages; Royalties; Model Fund Contribution; Expertise Charges; value of retail provides and dental bought; digital veterinary charges; bank card charges; lease and CAM; repairs and upkeep; workplace bills; insurance coverage; licenses and permits; native advertising; and different working bills) for the 5 Affiliate-Owned Models which have been open and working in the course of the 12 months ended December 31, 2021

Part VI – Key ratios, comparables, computations, and analyses for the Scenthound franchise alternative (unique content material for Platinum subscribers)

Part I – Scenthound Franchise Prices

• Scenthound franchise prices, primarily based on Merchandise 7 of the corporate’s 2022 FDD:

• Preliminary Franchise Price:  $49,900
• Leasehold Enhancements:  $55,600 to $157,100
• Coaching Bills:  $250 to $4,500
• Laptop System:  $3,200 to $3,800
• Hire (3 months):  $10,000 to $21,000
• Safety Deposit:  $3,000 to $9,000
• Fixtures/Tools/Furnishings:  $27,000 to $30,000
• Signage:  $4,000 to $7,000
• Startup Provides:  $4,000 to $5,000
• Insurance coverage Deposits and Premiums (3 months):  $1,000 to $3,000
• Utility Deposits:  $200 to $800
• Expertise Price (3 months):  $2,225
• Enterprise Licenses/Permits:  $500 to $4,000
• Skilled Charges:  $500 to $2,500
• Grand Opening Advertising and marketing:  $10,000
• Further Funds:  $30,000 to $60,000
• Whole Estimated Scenthound Franchise Prices:  $201,375 to $369,825

Part II – Scenthound’s Preliminary Franchise Price, Royalty Price, and Advertising and marketing Price

• Scenthound’s preliminary franchise price, royalty price, and advertising price, primarily based on Objects 5 and 6 of the corporate’s 2022 FDD:

• Preliminary Franchise Price:  $49,900
• Royalty Price:  6% of Gross Income
• Model Fund Contribution:  1.5% of Gross Income
• Native Promoting:  5.5% of Gross Income with a minimal of $25,000 per yr and an annual most of $40,000

Part III – Variety of Franchised and Firm-Owned Scenthound Shops

Franchised

2019

• Shops on the Begin of the 12 months:  0
• Shops on the Finish of the 12 months:  0
• Internet Change:  0

2020

• Shops on the Begin of the 12 months:  0
• Shops on the Finish of the 12 months:  1
• Internet Change:  +1

2021

• Shops on the Begin of the 12 months:  1
• Shops on the Finish of the 12 months:  18
• Internet Change:  +17

Firm-Owned

2019

• Shops on the Begin of the 12 months:  4
• Shops on the Finish of the 12 months:  4
• Internet Change:  0

2020

• Shops on the Begin of the 12 months:  4
• Shops on the Finish of the 12 months:  5
• Internet Change:  +1

2021

• Shops on the Begin of the 12 months:  5
• Shops on the Finish of the 12 months:  5
• Internet Change:  0

Part IV – Information Updates on the Scenthound Franchise

Part V – Monetary Efficiency Representations (Common Revenues and/or Earnings) for the Scenthound Franchise (Merchandise 19, 2022 FDD)

• The primary franchised Scenter opened on December 14, 2020. Since then, there are 21 working franchised Scenters and 6 Affiliate-Owned Models as of March 31, 2022. As of March 31, 2022, solely 5 franchised Scenters have been open for greater than 12 months.

Half 1 – Gross Income – Three Months of Cumulative Income (January 1, 2022 to March 31, 2022)

• Half 1 under represents 11 franchised Scenters which have been open and working for six months or extra and 5 Affiliate-Owned Models which have been open and working for six months or extra.

• All greenback quantities have been rounded to the closest $500.

Franchised Models Open Over 6 Months

• Common Reported Unit:  $97,500
• Median Reported Unit:  $96,500
• Highest Reported Unit:  $133,500
• Lowest Reported Unit:  $66,500

Affiliate-Owned Models Open Over 6 Months

• Common Reported Unit:  $109,500
• Median Reported Unit:  $126,500
• Highest Reported Unit:  $132,000
• Lowest Reported Unit:  $69,500

Half 2 – Gross Income by Month (Franchised Scenters)

1st Month Open

• Common Gross Gross sales in Month:  $14,000
• Variety of Models Represented:  11
• Highest Reported:  $25,000
• Lowest Reported:  $9,500

2nd Month Open

• Common Gross Gross sales in Month:  $17,500
• Variety of Models Represented:  11
• Highest Reported:  $23,500
• Lowest Reported:  $9,500

third Month Open

• Common Gross Gross sales in Month:  $21,000
• Variety of Models Represented:  11
• Highest Reported:  $29,500
• Lowest Reported:  $12,500

4th Month Open

• Common Gross Gross sales in Month:  $24,000
• Variety of Models Represented:  11
• Highest Reported:  $33,000
• Lowest Reported:  $12,500

fifth Month Open

• Common Gross Gross sales in Month:  $26,500
• Variety of Models Represented:  11
• Highest Reported:  $37,000
• Lowest Reported:  $15,000

sixth Month Open

• Common Gross Gross sales in Month:  $27,500
• Variety of Models Represented:  11
• Highest Reported:  $35,000
• Lowest Reported:  $18,000

seventh Month Open

• Common Gross Gross sales in Month:  $30,000
• Variety of Models Represented:  11
• Highest Reported:  $39,000
• Lowest Reported:  $18,000

eighth Month Open

• Common Gross Gross sales in Month:  $30,000
• Variety of Models Represented:  9
• Highest Reported:  $45,000
• Lowest Reported:  $20,000

ninth Month Open

• Common Gross Gross sales in Month:  $30,000
• Variety of Models Represented:  8
• Highest Reported:  $39,000
• Lowest Reported:  $21,000

tenth Month Open

• Common Gross Gross sales in Month:  $31,000
• Variety of Models Represented:  7
• Highest Reported:  $41,000
• Lowest Reported:  $20,000

eleventh Month Open

• Common Gross Gross sales in Month:  $29,500
• Variety of Models Represented:  6
• Highest Reported:  $42,000
• Lowest Reported:  $21,000

twelfth Month Open

• Common Gross Gross sales in Month:  $33,000
• Variety of Models Represented:  5
• Highest Reported:  $45,000
• Lowest Reported:  $22,000

First 12 Months Open

• Sum of Common Gross Gross sales in Month for First 12 Months:  $314,000

• Some shops have earned this quantity. Your particular person outcomes could differ. There isn’t any assurance that you just’ll earn as a lot.

• The 2 worst performing areas each operated with a pricing technique that has since been up to date and applied in later months, growing common membership income by 20%.

• The very best performing location for the primary month amongst the entire franchised Scenters was $33,000 and the bottom performing franchised Scenter for the primary month was $9,500.

Half 3 – Expense Info from Affiliate-Owned Models

• There have been 5 Affiliate-Owned Models working in the course of the 12 months ended December 31, 2021; they had been open for all 12 months. Scenthound used the expense info from the Affiliate-Owned Models, in addition to info offered to it by its franchisees regarding their leasing prices, to compile the data under on the expense of working a Scenter.

• Whereas Scenthound’s Affiliate-Owned Models could not have paid the identical charges to Scenthound as can be paid by Scenthound franchisees and would have had administration bills that franchisees wouldn’t have, Scenthound adjusted and normalized the numbers to replicate its present charges, necessities, and proposals, as described within the feedback.

• Scenthound additionally rounded all numbers to the closest $100.

• Wages and Payroll, Together with Taxes and Advantages (variable): The common expense in Scenthound’s Affiliate-Owned Models averaged $149,600 in 2021; this consists of managers who had been paid commissions and restricted advantages. This is the same as 36% of common income in company-owned areas. Payroll taxes and advantages accounted for $20,300 on common per company-owned location, or 5% of Gross Income earned.

• Royalties (variable): Royalties paid in 2021 had been set at 6% of Gross Income earned. The 2022 Royalty Price price on the time of issuance of the present Disclosure Doc is ready at 6% of Gross Revenues.

• Model Fund Contribution (variable): Model Fund Contribution charged in 2021 was set at 1% of Gross Income earned. The Model Fund Contribution in 2022 on the time of issuance is ready at 1.5% of Gross Income earned.

• Expertise Charges ($600 monthly): Expertise Charges are charged on a recovery-of-costs foundation and can change over time. The Expertise Price in 2022 is at the moment set at $675 monthly as of the issuance date of the present Disclosure Doc.

• Value of Retail Provides and Dental Bought (variable): Value of Retail Provides and Dental Bought within the Affiliate-Owned Models averaged 53.5% of whole common retail and dental cleanings bought.

• Digital Veterinary Charges (variable): Digital Vet charges are charged at $2.50 per member enrolled, monthly. This is applicable to the Escentials+ and Limitless+ memberships.

• Credit score Card Charges (variable): Bank card charges averaged 2.7% of whole common income throughout the Affiliate-Owned Models.

• Hire and CAM (variable): Rents differ relying on the scale and site of every Affiliate-Owned Unit. The common dimension of Scenthound’s Scenters (together with franchised areas) was 1,190 sq. ft, and the common gross lease paid (together with CAM) was $39.11 per sq. foot per yr.

• Repairs and Upkeep (variable): Repairs and Upkeep on Affiliate-Owned Models averaged $3,800 per location in 2021, excluding Scenthound’s Boca Raton location. The common age of the Affiliate-Owned Models is 7.75 years for the above talked about 4 areas. Boca Raton opened in September 2020 and prices totaled $1,100 for this location.

• Workplace Bills (variable): Workplace bills included Phone/Web, Safety, Utilities, Provides, POS prices, and so forth. Common for Affiliate-Owned Models was $22,100 in 2021 or 5% of common Gross Income earned.

• Insurance coverage (mounted): Insurance coverage varies by company-owned location, however averaged $5,400 in 2021.

• Licenses and Permits (mounted): Licenses and Permits differ by location, jurisdiction, and/or state. Affiliate-Owned Models are all situated in Palm Seashore County in Florida. Licensing and allow prices had been $990 in 2021.

• Native Advertising and marketing Expense (mounted – $2,083.33 monthly minimal): Native advertising bills are mounted at a minimal month-to-month spend of $2,083.33 monthly or $25,000 per yr. The minimal advertising for the 2022 FDD is revised to five.5% of whole Gross Income earned with a minimal of $25,000 per yr to a most of $40,000.

• Different Working Bills (variable): Different working bills embody prices equivalent to skilled charges, recruiting, rewards and recognition, and uniforms. Different working bills averaged $13,100 or 3% of common Gross Income of Affiliate-Owned Models.

Part VI – Scenthound Franchise Ratios, Comparables, Computations, and Analyses (Unique Content material for Platinum Subscribers) ⬇️