Published on 7 Apr 2022 Time 6 min read Last update by 29 May 2024

Dogtopia Franchise Review (2021)

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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-review-2020

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.

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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.

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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.”

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