For Central Bark Doggy Day Care, what is the definition of 'Gross Profit'?
Central_Bark_Doggy_Day_Care Franchise · 2025 FDDAnswer from 2025 FDD Document
Notes:
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- "Cost of Labor" includes wages, commissions, bonuses, benefits (if any), payroll taxes, and workers' compensation for employees and/or contractors involved in service delivery. It excludes compensation paid to the principal of the Franchised Business. Among the CENTRAL BARK Facilities in the Sales Group, the median Cost of Labor was 42.5%, with a high of 59.5% and a low of 32.1%.
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- "Cost of Goods Sold" refers to the direct costs of products, supplies, materials, and shipping associated with delivering services. For the Sales Group, the median was 1.4%, the high was 4.8%, and the low was 0.1%.
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- "Gross Profit" means Gross Sales minus the sum of Cost of Goods Sold and Cost of Labor. For the Sales Group, the median was 56.1%, the high was 99.9%, and the low was 94.2%.
Source: Item 19 — FINANCIAL PERFORMANCE REPRESENTATIONS (FDD pages 43–48)
What This Means (2025 FDD)
According to Central Bark Doggy Day Care's 2025 Franchise Disclosure Document, Gross Profit is defined as Gross Sales minus the sum of Cost of Goods Sold and Cost of Labor. For the Sales Group, the median Gross Profit was 56.1%, with a high of 99.9% and a low of 94.2%.
Cost of Goods Sold refers to the direct costs of products, supplies, materials, and shipping associated with delivering services. For the Sales Group, the median was 1.4%, the high was 4.8%, and the low was 0.1%. Cost of Labor includes wages, commissions, bonuses, benefits (if any), payroll taxes, and workers' compensation for employees and/or contractors involved in service delivery, but it excludes compensation paid to the principal of the Franchised Business. Among the Central Bark Doggy Day Care Facilities in the Sales Group, the median Cost of Labor was 42.5%, with a high of 59.5% and a low of 32.1%.
Understanding these definitions is crucial for a prospective franchisee to accurately assess the financial performance representations provided in Item 19 of the FDD. By knowing exactly what constitutes Gross Profit, Cost of Goods Sold, and Cost of Labor, a franchisee can better interpret the financial data and make informed decisions about the potential profitability of a Central Bark Doggy Day Care franchise. It's important to note that these figures are based on a specific Sales Group of existing locations and that an individual franchisee's results may vary.