Big Frog Franchise in 2024: Costs, Fee & FDD

Big Frog Custom T-Shirts & More was founded in 2008 by Tina Bacon-DeFrece and Ron DeFrece in sunny Florida. The duo saw an opportunity to fill a niche in the custom apparel market by offering on-demand, high-quality, personalized t-shirts with quick turnaround times. The name “Big Frog” represents their fun, approachable, and community-driven spirit. The franchise quickly made a splash with its unique approach to direct-to-garment (DTG) printing, establishing itself as a go-to brand for individuals, schools, organizations, and businesses looking to create custom clothing with ease.

At its core, Big Frog specializes in custom-designed t-shirts, offering no minimum orders and a fast, friendly customer experience. Their services also include custom embroidery, vinyl application, and branded merchandise such as hoodies, hats, tote bags, and more. Big Frog appeals to a diverse audience, including small business owners, sports teams, event planners, and families celebrating milestones. The focus on personalized service, vibrant designs, and community involvement makes Big Frog a hit among local groups and businesses.

Big Frog has grown steadily, now boasting over 70 locations across the U.S. The franchise primarily operates in local markets, providing a personalized shopping experience and serving hundreds of customers weekly. With each location serving as a hub for creativity and community engagement, Big Frog continues to thrive in a growing custom apparel industry. The brand’s emphasis on local connections and efficient production ensures consistent customer traffic and repeat business, making it a sustainable business model for franchisees.

Franchisees benefit from comprehensive support, including an initial three-week training program covering DTG technology, operations, marketing, and customer service. Big Frog offers ongoing assistance with site selection, store design, and marketing strategies, including social media and local outreach. Franchisees also receive continuous guidance through regular webinars, conferences, and a dedicated support team. This robust system helps ensure that every franchise owner is well-prepared to run a successful, creative, and customer-focused Big Frog store.

Big Frog Franchise Insights

1. Since its founding in 2008, Big Frog has expanded to over 70 locations across the U.S., showing strong demand for on-demand custom apparel and localized service.
2. Big Frog’s direct-to-garment (DTG) technology allows for no minimum orders, giving franchisees a competitive edge by catering to both individuals and large organizations.
3. The custom apparel market is expected to reach $10 billion by 2025, positioning Big Frog in a lucrative industry driven by personalization trends and branded merchandise needs.
4. Franchisees typically engage in their local communities, partnering with schools, non-profits, and small businesses, which fosters customer loyalty and consistent revenue streams.
5. Big Frog uses water-based, eco-friendly inks in their DTG printing process, aligning with the growing consumer preference for sustainable products.

Big Frog Franchise Key indicators

How much does it cost to open a Big Frog franchise?

Understanding the potential investment size and capital requirements is crucial when considering opening a Big Frog franchise. These financial commitments, including initial franchise fees, equipment costs, and ongoing operational expenses, impact the feasibility and profitability of the venture. Thoroughly evaluating these factors ensures that potential franchisees are prepared for the financial responsibilities and can make informed decisions about their ability to sustain and grow the business, ultimately contributing to long-term success.

Min & Max Investment

Opening a Big Frog franchise involves several key costs, which are outlined in Item 7 of the Franchise Disclosure Document (FDD). you can see a breakdown of the costs to open a Big Frog below from the most recent Item 7 below:

Item 7 in the Franchise Disclosure Document (FDD) is the “Estimated Initial Investment” section. It outlines the total costs a franchisee can expect to incur when starting a franchise, including the initial franchise fee, equipment, inventory, real estate, and other startup expenses. This section is crucial because it provides potential franchisees with a detailed understanding of the financial commitment required, helping them assess affordability and plan their investment strategy effectively.

Required Capital

To open a Big Frog franchise, the required capital involves both the initial investment costs and a net worth requirement set by Big Frog. Let’s take a closer look below:

• Initial Investment As shown above, the total estimated initial investment ranges from $161,109 to $319,684. This includes all the startup costs such as the franchise fee, real estate, construction, equipment, initial inventory, and additional funds for initial operating expenses. Assuming that you will finance your franchise investment, you should plan to have 20% of the total investment amount in the form of equity (cash) for the investment.
• Liquid Assets Requirement (Estimate) Most franchises in this retail niche require $50,000 to $100,000 in liquid assets (cash or accessible funds). This ensures you have sufficient working capital to cover initial expenses and early operations.
• Net Worth Requirement (Estimate) Typically, a net worth of $300,000 to $400,000 is recommended. This demonstrates financial stability and your ability to sustain the business during the initial growth phase.

How much does a Big Frog franchise owner make?

Calculating the salary of a Big Frog franchise owner involves analyzing gross sales to determine total revenue, assessing operational efficiency to understand profit margins, and accounting for franchisor fees and additional expenses such as rent, utilities, and payroll. Effective management of these factors can significantly impact the profitability and financial success of a Big Frog franchise owner. This comprehensive financial analysis helps estimate net profits, from which the owner’s salary can be derived. A clear understanding of these factors ensures accurate salary projections and financial planning for sustainable business operations.

Big Frog Revenue & Gross Sales

Big Frog’s recent revenue performance showcases promising potential for franchisees, with median gross sales reaching $477,842. This figure reflects steady demand for custom apparel and personalized printing services, driven by a diverse customer base that includes individuals, businesses, schools, and community groups. The franchise’s unique approach of offering same-day service and no minimum orders helps maintain strong sales.

Which key factors impact the average revenue performance of Big Frog franchisees?

Several factors likely contributed to the performance of Big Frog’s U.S. franchisee median gross sales this past year. Increased demand for personalized, custom apparel from schools, small businesses, and community groups helped drive consistent sales. The brand’s quick turnaround, with no minimum orders and same-day service, gives it a competitive edge over traditional print shops, appealing to customers needing convenience and flexibility. Additionally, Big Frog’s focus on local marketing, community engagement, and customer-centric service builds strong brand loyalty. However, challenges like supply chain issues, fluctuating material costs, and varying local economic conditions may have impacted sales growth compared to the previous year. Effective operational management and strategic location selection remain critical for success.

Big Frog Franchise Operational Costs

When opening a Big Frog franchise, here are the key ongoing operational costs you should factor into your business plan:

• Inventory and Supplies Regular replenishment of blank apparel (shirts, hoodies, hats) and printing materials (inks, transfers) to meet customer demand.
• Employee Wages Paying for staff, including customer service representatives, graphic designers, and production team members to maintain smooth operations.
• Rent and Utilities Leasing costs for your retail space, along with electricity, water, internet, and HVAC expenses for maintaining a comfortable work environment.
• Equipment Maintenance Upkeep, repairs, and eventual replacement of direct-to-garment (DTG) printers, heat presses, and computer systems to ensure smooth production.
• Software Subscriptions Costs for design software, point-of-sale (POS) systems, and order management tools to streamline operations and customer interactions.
• Insurance Coverage for general liability, property, and workers’ compensation to protect your business from potential risks.

Cleaning and Maintenance: Keeping your retail space clean and organized for a professional customer experience.

Managing these costs efficiently will be crucial for maintaining profitability and delivering consistent service.

Big Frog Franchise Fees

Here’s a streamlined breakdown of the relevant ongoing fees for this franchise:

• Continuing Royalty Fee For the initial 6 months, the fee is 6% of gross sales. After 6 months, it becomes the greater of 6% of gross sales or $1,200 per month. Payments are due by the 10th of the month via electronic funds transfer (EFT).
• Brand Fund Contribution 1.5% of the previous month’s gross sales, also due by the 10th of the month via EFT. This fee supports system-wide marketing and brand development efforts.

Keep in mind that there might be additional fees, such as charges for non-compliance, extra training, or technology upgrades, depending on your specific franchise agreement.

These ongoing fees are essential to consider when planning the financial aspects of owning and operating a Big Frog franchise. They cover the costs of brand support, advertising, and ongoing operational assistance provided by Big Frog.

Big Frog Franchise Earnings

Based on the most recent data, the median gross sales for this franchise are $477,842. For owner-operators, this translates to estimated earnings of around $57,000.

To maximize earnings, owner-operators need to focus on keeping operational costs in check while ensuring steady customer flow. Factors such as location, customer engagement, and quality of service play crucial roles in sustaining this level of revenue. These earnings highlight a promising opportunity for dedicated franchisees who are actively involved in daily operations and can drive consistent sales performance.

How to Open a Big Frog Franchise

Becoming a Big Frog franchisee is a rigorous process that involves financial scrutiny, extensive training, and thorough evaluation. However, it offers the potential for a lucrative business opportunity backed by a globally recognized brand and comprehensive support system.

The full process for how to open a Big Frog franchise is outlined below:

1. Initial Inquiry You or your franchise specialist submits an initial inquiry basic information about your interest and background. You should also conduct thorough research on the franchise, including seeing all of the information available on the Vetted Biz franchise intelligence platform, including access to the most recent Franchise Disclosure Document (FDD).
2. Introductory Call Participate in an introductory call with the franchise development team. This call helps both parties gauge compatibility and gives you an overview of expectations, qualifications, and next steps.
3. Franchise Application Fill out and submit a formal franchise application. You’ll provide details about your background, experience, and financial standing to ensure you meet the franchise’s requirements.
4. Discovery Day Attend Discovery Day at the franchise headquarters or designated location. Meet the leadership team, tour the facilities, and experience the brand firsthand to decide if it’s a good fit.
5. Franchise Agreement Signing If both parties agree to move forward, sign the franchise agreement and pay the initial franchise fee. This step officially secures your rights to operate under the brand.
6. Site Selection and Lease Negotiation Work with the franchise’s real estate team to select an optimal location. The team helps negotiate lease terms and ensures the site meets the brand’s standards.
7. Training Program Complete the franchise’s comprehensive training program, covering operations, marketing, sales, and customer service. This can include both in-person and online sessions.
8. Studio/Store Build-Out Begin the build-out and setup process with guidance from the franchise’s development team. This includes design, equipment installation, and inspections to meet brand standards.
9. Pre-Opening Marketing and Hiring Launch pre-opening marketing campaigns to generate local buzz. Recruit and train your staff with support from the franchise’s training and HR teams.
10. Grand Opening and Launch Host your grand opening event with assistance from the franchise team. They provide guidance to ensure a smooth launch, and you start welcoming customers!
11. Ongoing Support After launch, benefit from continued support in marketing, operations, and training to help you succeed and grow your business.

Pros & Cons

Pros

Established Brand Recognition: This franchise benefits from a well-known name and proven business model, helping attract customers and build trust faster than starting an independent business.

Diverse Revenue Streams: The business model offers multiple income opportunities through core services, ancillary products, and potential add-ons like branded merchandise or special promotions.

Growing Market Demand: The industry trend supports consistent growth, providing a favorable environment for new franchisees to thrive.

Scalable Operations: The streamlined systems and processes make it easier to open additional locations if you want to expand in the future.

Cons

Competitive Market: Depending on location, you may face stiff competition from other established franchises and local independent businesses offering similar services.

Operational Demands: Managing staff, maintaining quality standards, and handling customer service can be time-intensive and require strong leadership skills.

Potential for Additional Costs: Expenses related to equipment repairs, marketing campaigns, and compliance with brand standards can add up over time.