Frequently Asked Questions
Before investing in a business, you will need many questions answered. At Big Frog, we want you to have the knowledge you need before you take the leap. Below, you’ll find the answers to the most commonly asked questions regarding buying a Big Frog Custom T-Shirt franchise.
Why should I buy a Big Frog franchise?
Big Frog is the only franchise of its kind in America. In our niche (retail Direct-to-Garment, known as DTG) we are the only chain or franchise. We appeal both to a newly created marketplace (1-100 garments) both offer other decorating services to service from 1 to 10,000 custom garments. We are a fun business with deep ties to our local communities. We have a strong history of success and wonderful validation from our franchise owners. Minimal employees and hours. High margins. Low capital investment. New technology. Green process. No receivables. We offer a high quality of life business and we emphasize giving back to the community. B-to-B both B-to-C. Low overhead and operating costs.
What are the minimum requirements to open a Big Frog store?
To ensure you can obtain the necessary financing you will need to move forward, we require you to have a minimum of $50,000 liquid assets (cash and marketable securities) and $300,000 net worth. This requirement may be higher if construction costs are higher than normal in certain areas.
What is the total investment in a Big Frog? How does it break down? How much is paid to Big Frog directly?
The cost of building out a single standard format store, including the franchise development fee and working capital, ranges between $195,934 to $291,434. A full breakdown of the cost is provided in Item 7 in our Franchise Disclosure Document (FDD). The bulk of that cost can usually be financed, but lenders will generally require a cash injection of 20-30%. Big Frog candidates will need to meet lenders’ qualifications for financing. The initial franchise fee to purchase a Big Frog franchise is $39,500. We require you to have about $40,000 in working capital on hand when you open your store. The store build-out, furniture, equipment, fixtures, inventory, and signage, plus the cost of attending training is approximately $100,000.
Does Big Frog offer in-house financing?
No, we don’t offer first-party financing, but we can refer you to several preferred lenders we work with who are very comfortable with the Big Frog model. Additionally, Big Frog is listed in the SBA Franchise Directory and is eligible for financial assistance.
Do you offer incentives for military and minority-owned business owners?
Yes, qualified veterans are eligible for a 20% discount off the initial franchise fee for your first standard franchise location. Additionally, Big Frog participates in the IFA DiversityFran program that provides majority owned (51% or above) qualifying female or ethnic minority groups with a 10% discount off the initial franchise fee for your first standard location.
What does Big Frog’s Competition look like?
While Big Frog Franchisees face competition, we have several unique factors that provide healthy separation for the customers to choose us over any other provider. T-shirt makers are a highly-fragmented business. 90% of the DTG machines in the industry aren’t used regularly and are only a supplemental feature lying dormant most of the time in backrooms. Big Frog’s DTG printers are powerhouses, printing at a very high capacity day-in and day-out. Large screen printers cannot service customers looking for small orders and no setup fees. They also do not have the welcoming environment we provide to customers as they are typically more industrial in nature. When comparing Big Frog to local Mom-and-Pop shops or people working out of their garage, Big Frog far exceeds their capabilities with customer service, pricing and value. Online competitors do exist, but through the strong community ties you will build – our customers bring us their business for the Big Frog Experience. They have the trust that their products will be of a high quality because they personally chose them in the store and the confidence that we will print them exactly as designed at the local level.
What do I receive for my investment?
Big Frog will introduce, teach, train and support you in operating your store; one that is unique in the franchise world. We help you with site selection, lease negotiation, design, layout and help equip your store. We train you in Dunedin for a minimum of a week and at your store for four days. We provide on going support in a wide variety of ways, and we help you with marketing, recruitment and training of personnel. We will assist and advise you with the procurement of equipment and inventory and do so on an ongoing basis.
What else do I pay to Big Frog once I open my store?
You will pay us a monthly royalty of 6% of your sales, (with a minimum of $1,200/month, which doesn’t “kick in” until your 7th month of operation). Furthermore, we collect, on behalf of the franchisees, the sum of 1.5 % of your sales toward a “national marketing fund”. This money is spent on behalf of the franchise owners on digital campaigns and marketing support. A list of other fees is provided in Item 6 in our Franchise Disclosure Document.
How long will it take me to get open? Will Big Frog help me find a good location?
If things go well, you could be open in as little as 60 days. More typical would be 90 to 120 days. We hold your hand every step of the way, including location assistance and lease negotiations with the landlord. Our typical store is between 800 and 1200 square feet, with about 600 square feet of that space “out front” where the customers and graphic artists are located.
What other expenses do I have in order to operate a store?
Rent and associated expenses, employee costs, cost of goods including cost of t-shirts and manufacturing supplies like the garment dye (ink), marketing, and miscellaneous items, such as the cost of accepting credit cards, utilities, and insurance. The amounts will vary from location to location. A list of other fees is provided in Item 6 in our Franchise Disclosure Document.
How does the territory work?
Your standard designated territory will encompass a residential population up to 150,000, defined by zip codes or geographic boundaries, with household incomes greater than $80,000.
How can I be successful as a Big Frog owner?
In a “normal” retail business, you might rely heavily on location of your store and advertising to get customers. With Big Frog, both of these methods are effective. Additionally, we have found that if our owners spend time in the community networking, and getting involved in community activities and events, the store can do even better. Networking within your chamber and with other business owners can generate more awareness and sales. Digital advertising including SEO – search engine optimization – and social media can be very effective. Big Frog can train you on some or all of these opportunities. Owning any business requires hard work and dedication to be a true success.
How much money can I make by owning a Big Frog?
We are prohibited by law and common sense from predicting your results. The Federal Trade Commission requires we provide information in a very specific format as part of our Franchise Disclosure Document (FDD). You will receive that document from your franchise development representative which includes gross sales averages and a breakdown of key category costs. We believe that the Item 19 representations are very important to your consideration of any franchise investment, and we are proud to share our record with you. Moreover, you will be invited to talk with as many of our franchisees as you wish to help you determine what your results might look like. Our franchisees are not barred from answering any questions, and we do not control what they tell you. To help make the most out of your store, our coaches are trained to help you optimize your bottom line by reducing expenses and maximizing margins.
What is the future for Big Frog? Where do you want to be in 5 years?
Big Frog is developing this franchise to be the recognized leader in garment decorating and our goal is have 200 stores in the United States and Canada by 2025. Our primary concern is to find high-quality individuals to join us on this mission. As Big Frog continues to build a national name and brand, we will continue to bring more customer awareness and value to each and every franchise location, thereby increasing the value of every Big Frog franchise store. You couldn’t have picked a more perfect time to be look at becoming a Big Frog franchise owner.
What are the steps of investigating and opening a Big Frog?
There are six steps involved in the investigative process and finally to opening a Big Frog Custom T-Shirts franchise. Click here
for the list.