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Dogtopia Franchise Review (2021)
Written by: Patrick Findaro
Last Updated:
January 30, 2024
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Founded 2002 with the first franchised unit in 2005, Dogtopia is a dog daycare, boarding, and spa facility rolled into one.
Dogtopia’s strong reputation combined with its good quality for a reasonable price model has enabled the franchise to experience solid growth over the years.
Dogtopia Franchise Background
Dogtopia is dedicated to offering exceptional care for dogs and currently operates more than 70 locations in the United States and Canada. Its modern facilities provide a healthy, safe, and fun environment for dogs to socialize and play in, supervised by a highly trained and loving team. The multiple, spacious playrooms allow them to separate their guests by size and temperaments. The Webcams allow the dog parents to view their pet during the day.
Since opening in 2002, Dogtopia has been the recipient of many awards for its facility design, customer service and cutting-edge innovations. Its awards include Pet Product News International Retailer of the Year (2013), Pet Age Business of the Year-Bronze (2014), Inc. 500/5000 List of America’s Fastest Growing Companies, and Entrepreneur’s Franchise 500 among others.
Management Team
Peter Thomas, Chairman of Thomas Franchise Solutions, purchased in 2015 his partners’ interest in Dogtopia, the leading dog day care provider in north America. Dogtopia’s current growth strategy is to expand their leading dog-day-care, boarding and spa brand to more than 400 locations across the U.S. and Canada over the next several years.
TFS is a private equity, advisory, and franchise marketing company headquartered in both the United States and Canada. TFS makes capital investments in private growth stage companies throughout North America that have franchising as their core expansion strategy.
Franchise Pet Care Industry Analysis
Franchise Strengths
- Strong franchise brand with a proven business model that is growing
- Recession-proof, predictable business
- Good margins
- Very large market that is growing
Franchise Weaknesses
- Dealing with live animals so retail locations might be limited
- Can only operate in cities and suburbs with a high enough population density
Franchise Opportunities
- Rapidly growing market: in 2015 pet expenditures in the U.S. reach ~$60.6bn, with pet expenditures forecasted to be ~$62.7bn in 2016.
- From 2009-2013, pet ownership in the US increased from 53.6% to 56.5%, with overall pet expenditures increasing by 18%.
- Brand recognition has room to grow.
Franchise Threats
- Business relies heavily on trust, negative experiences that lead to bad press can severely damage the reputation of the business.
- Profitability can be negatively impacted by competitors within a market.
How much is a Dogtopia?
Dogtopia Franchise cost ranges from $668,298 to $1,444,264 according to the 2020 FDD.
| Item | Estimated Amount (in USD) | When Due | To Whom Payment is to Be Made | |
|---|---|---|---|---|
| Low | High | |||
| Initial Franchise Fee | 40.095 | 49.500 | Upon signing FA | Franchisor |
| Initial Training Fee | 0 | 2.000 | 10 days after invoicing | Franchisor |
| Food, Lodging & Travel (3-4 people while training) | 1.000 | 12.000 | During training | Hotels, restaurants, and airlines |
| Lease, Utility & Security Deposits | 5.500 | 17.500 | Before Opening | Landlord and utilities companies |
| 3 Months Rent | 17.400 | 45.600 | Monthly (3 months after opening) | Landlord |
| Real Estate and Facility Coordination Fee | 35.000 | 44.500 | Upon signing FA | Franchisor |
| Leasehold Improvements | 419.428 | 814.064 | Before Opening | Contractors and suppliers |
| Furniture, Fixtures & Equipment | 29.500 | 60.500 | Before Opening | Suppliers |
| Exterior Signage and Graphics | 10.000 | 45.000 | Before Opening | Suppliers |
| Interior Signage and Graphics | 15.000 | 35.000 | Before Opening | Suppliers |
| Microsite & Social Media Account Initial Set Up Fee | 500 | 500 | At launch of microsite | Franchisor |
| Technology Systems | 8.550 | 27.600 | Before Opening | Suppliers |
| Technology Fees (pre-opening period) | 1.225 | 2.400 | Before Opening | Franchisor |
| Scent Air System | 500 | 2.000 | Before Opening | Suppliers |
| Initial Supply of Inventory and Operating Supplies | 7.900 | 10.600 | Before Opening | Suppliers |
| Grand Opening Marketing | 15.000 | 30.000 | Prior to Opening | Newspaper, Yellow Pages, ad printers, other media |
| Business Licenses & Permits | 2.000 | 44.000 | Prior to Opening | Government agencies |
| Insurance Premiums 3 months | 1.200 | 3.000 | Before Opening | Insurance companies |
| Professional Fees | 28.500 | 78.500 | Before Opening | Lawyers, architects, accountants, franchisor & other professionals |
| Additional Funds 3 months | 30.000 | 120.000 | As Incurred | Suppliers, employees, franchisor |
| TOTAL | $668,298 | $1,444,264 |
| Royalty | Ad-Fund |
| 7% | 3% |
How Much does a Dogtopia Franchise make?
Highest Store Sales Highest Store SalesBottom QuintilleBottom QuintilleMedianMedianLowest Store Sales (8+ Years)Lowest Store Sales (8+ Years)Median (8+ Years) Median (8+ Years)Highest Store Sales (4-7 Years)Highest Store Sales (4-7 Years)Average (4-7 Years)Average (4-7 Years)Highest Store Sales (3 Years)Highest Store Sales (3 Years)Average (3 Years)Average (3 Years)Lowest Store Sales (2 Years) Lowest Store Sales (2 Years)Highest Store Sales (13-24 Months)Highest Store Sales (13-24 Months)Average (13-24 Months)Average (13-24 Months).
| 2018 Franchisee Opeational Outlets Average & Medians | 2017 Franchisee Opeational Outlets Average & Medians | |||
|---|---|---|---|---|
| Total Sales YTD | $29.847.225 | Total Sales YTD | $22.243.106 | |
| $1.585.163 | $1.404.337 | |||
| Top Quintile | $1.179.441 | Top Quintile | $1.112.753 | |
| $406.916 | $360.141 | |||
| Lowest Store Sales (open more than 24 months) | $351.595 | Lowest Store Sales (open more than 24 months) | $297.187 | |
| $673.341 | $643.653 | |||
| Average | $710.648 | Average | $695.097 | |
| Highest Store Sales (8+ Years) | $1.585.163 | Highest Store Sales (8+ Years) | $1.404.337 | |
| $420.484 | $393.680 | |||
| Average (8+ Years) | $951.617 | Average (8+ Years) | $900.192 | |
| $873.291 | $890.213 | |||
| $927.118 | $821.054 | |||
| Lowest Store Sales (4-7 Years) | $351.595 | Lowest Store Sales (4-7 Years) | $297.187 | |
| $637.737 | $537.036 | |||
| Median (4-7 Years) | $714.083 | Median (4-7 Years) | $499.567 | |
| $967.559 | $746.036 | |||
| Lowest Store Sales (3 Years) | $419.824 | Lowest Store Sales (3 Years) | $353.269 | |
| $711.524 | $494.729 | |||
| Median (3 Years) | $810.981 | Median (3 Years) | $441.974 | |
| Highest Store Sales (2 Years) | $777.121 | Highest Store Sales (2 Years) | $841.100 | |
| $400.228 | $400.723 | |||
| Average (2 Years) | $545.288 | Average (2 Years) | $586.908 | |
| Median (2 Years) | $501.902 | Median (2 Years) | $552.905 | |
| $604.042 | ||||
| $1.290.467 | $401.423 | |||
| Lowest Store Sales (13-24 Months) | $415.318 | Lowest Store Sales (13-24 Months) | $522.912 | |
| $576.334 | $543.092 | |||
| Median (13-24 Months) | $479,805 | Median (13-24 Months) | $479,805 | |
FDD Disclosure: “We have provided 3 categories of financial performance representation (“FPR”): (1) 2019 Gross Sales; (2) Comparison Gross Sales (2018 vs 2019); and (3) 2019 Net Profit. The 2019 Gross Sales FPR is broken down into multiple subsets based on the total number of years of operation of each outlet.
The FPR data is contained within the tables in the Section below entitled “Financial Performance Representation.” We have provided the data for both franchised outlets and company-owned outlets except for the Comparison Gross Sales FPR, which is limited to franchisee data. However, we excluded data from any outlet that was owned by us or our affiliate during part of the relevant measuring period and owned by a franchisee during another part of the relevant measuring period.
The FPR data is broken out into the following tables:
Table 1: 2019 Gross Sales – Franchised Qualifying Outlets
Table 2: 2019 Gross Sales – Company-Owned Qualifying Outlets
Table 3: Comparison Gross Sales – Franchised Qualifying Outlets (2018 vs 2019)
Table 4: 2019 Net Profit – Franchised Qualifying Outlets
Table 5: 2019 Net Profit – Company-Owned Qualifying Outlets (Aggregated Results)
Table 6: 2019 Net Profit – Company-Owned Qualifying Outlets (Individual Results)
The FPR only includes data for outlets that are “Qualifying Outlets.”
Each category of FPR includes data for all Dogtopia businesses that met certain qualifying criteria (referred to
as a “Qualifying Outlet”). Each category of FPR has different qualifying criteria. Some outlets are Qualifying
Outlets for purposes of the 2019 Gross Sales FPR but are not Qualifying Outlets for purposes of the Comparison
Gross Sales FPR and/or the 2019 Net Profit FPR.”
