Splash and Dash Franchise in 2024: Costs, Fee & FDD
Discover how Splash and Dash’s innovative subscription model, booming $120B pet industry presence, and comprehensive franchise support can fuel your entrepreneurial dreams. Is this fast-growing pet grooming franchise the right fit for you? Click to find out!
Table of Contents:
Splash and Dash was founded by Dan J. Barton in 2009 with a mission to revolutionize the pet grooming industry by offering a membership-based business model. Barton, a former pet store owner, identified a gap in the market for convenient, high-quality grooming services for busy pet parents. Splash and Dash focuses on making routine grooming easy, accessible, and affordable, giving pets the care they need while creating a loyal, repeat customer base. The brand quickly established itself as an innovator, catering to the growing demand for convenient pet care services in a booming $120 billion pet industry.
At its core, Splash and Dash offers premium grooming services for dogs, with a unique monthly membership that allows unlimited bathing and brushing. This subscription model ensures pets stay clean and healthy without breaking the bank. Ancillary services include nail trims, teeth brushing, and specialty spa treatments, all aimed at providing a full-service grooming experience. Their primary customers are pet parents who seek convenience, quality care, and a regular grooming routine for their furry companions, particularly busy professionals and families.
Splash and Dash has expanded steadily, with over 30 locations across the United States and even international growth in countries like Australia. Each location serves dozens of pets daily, creating a high-traffic environment and consistent revenue for franchisees. The scalability of the subscription model, combined with the ever-growing pet care market, positions Splash and Dash as a promising franchise opportunity for those passionate about pets and entrepreneurship.
Franchisees benefit from a robust support system, including comprehensive training programs covering grooming techniques, operations, customer service, and marketing. New owners receive hands-on guidance during the setup process, including site selection, store design, and launch planning. Ongoing support includes marketing strategies, tech tools for managing memberships, and continued education through webinars and conferences. This level of support ensures that franchisees can deliver an exceptional experience for both pets and their owners, setting them up for long-term success in the pet grooming industry.
Splash and Dash Franchise Insights
- Splash and Dash’s unique monthly membership allows unlimited bathing and brushing, keeping customers coming back and driving consistent, recurring revenue for franchisees.
- The U.S. pet industry is valued at over $120 billion, with grooming services experiencing steady growth, making this a promising niche to invest in.
- The membership model results in an average of 2-4 visits per month per member, fostering loyalty and building a dependable customer base.
- Approximately 70% of U.S. households own pets, driving continuous demand for grooming services and ensuring a stable market.
- The pet grooming sector is projected to grow by 5-7% annually, driven by increasing pet ownership and the humanization of pets.
Splash and Dash Franchise Key indicators
Growth YOY (%)
8%
vs industry 17%
Total U.S. Franchised Units
14
3-Year Failure Rate
23%
vs industry 5%
Sales-to-Investment ratio
1.6:1
How much does it cost to open a Splash and Dash franchise?
Understanding the potential investment size and capital requirements is crucial when considering opening a Splash and Dash 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 Splash and Dash 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 Splash and Dash below from the most recent Item 7 below:
| Type of Expenditure | Minimum Investment | Maximum Investment |
|---|---|---|
| Initial Franchise Fee | $60,000 | $60,000 |
| Security Deposits, Utility Deposits, Business Licenses | $250 | $1,500 |
| Rent (One Month) | $3,000 | $4,500 |
| Lease Security Deposit | $3,000 | $9,000 |
| Leasehold Improvements | $75,000 | $175,000 |
| Architectural | $3,000 | $15,000 |
| Construction Project Management | $18,500 | $18,500 |
| Furniture, Fixtures, and Equipment | $35,000 | $50,000 |
| Grooming Equipment and Supplies | $40,000 | $50,000 |
| Computer, Point-of-Sale, and Status Display Systems | $11,500 | $18,000 |
| Office Expenses | $350 | $1,000 |
| Insurance (6 Months) | $600 | $1,500 |
| Building Signage | $7,500 | $12,500 |
| Opening Inventory and Supplies | $7,500 | $10,500 |
| Professional Fees | $500 | $4,000 |
| Market Introduction Plan/Pre-Opening Marketing | $15,000 | $20,000 |
| Travel, Lodging, and Meals for Training | $4,000 | $6,000 |
| Training Fee at a Current Location (5 Days) | $3,500 | $3,500 |
| "FIDO" Software Prior to Opening | $984 | $984 |
| Additional Funds (First 3 Months) | $20,000 | $50,000 |
| TOTAL | $309,184 | $511,484 |
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 Splash and Dash franchise, the required capital involves both the initial investment costs and a net worth requirement set by Splash and Dash. Let’s take a closer look below:
- Initial Investment As shown above, the total estimated initial $309,184 to $511,484. 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 Most pet grooming franchises require $75,000 to $100,000 in liquid assets. This ensures you have accessible funds to cover operational costs during the initial months of business.
- Net Worth Requirement A net worth of around $350,000 to $500,000 is typically recommended. This shows financial stability and your ability to support the business through its growth phase.
How much does a Splash and Dash franchise owner make?
Calculating the salary of a Splash and Dash 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 Splash and Dash 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.
Splash and Dash Revenue & Gross Sales
Splash and Dash’s recent revenue performance demonstrates strong potential in the pet grooming industry, with median gross sales reaching $646,573. This figure reflects consistent demand for pet grooming services and membership-based recurring revenue. The franchise’s model, which focuses on offering convenience and quality through subscription services and a full range of grooming options, supports steady customer retention and repeat business.
Which key factors impact the average revenue performance of Splash and Dash franchisees?
Several factors likely contributed to Splash and Dash’s strong median gross sales performance this past year. The rising demand for pet grooming services, driven by increasing pet ownership and owners prioritizing pet wellness, played a significant role. The franchise’s unique membership-based model fosters consistent, recurring revenue, encouraging regular visits and improving customer loyalty. Additionally, enhanced marketing strategies, including local promotions and digital engagement, likely boosted customer acquisition and retention. Efficient operational systems, streamlined grooming services, and a focus on quality also helped franchisees optimize throughput and customer satisfaction. Factors like inflation and labor costs may have posed challenges, but overall, these strengths supported positive year-over-year performance.
Splash and Dash Franchise Operational Costs
When running a Splash and Dash franchise, here are the key ongoing operational costs you should factor into your budget:
- Employee Wages Groomers, bathers, and front-desk staff salaries, including potential overtime pay during busy periods.
- Rent and Utilities Leasing costs for your retail space and expenses for electricity, water, heating, and air conditioning.
- Supplies and Inventory Regular replenishment of grooming supplies like shampoos, conditioners, clippers, towels, and cleaning products.
- Equipment Maintenance Servicing and repairing grooming tables, dryers, tubs, and other equipment to ensure smooth operations.
- Insurance Coverage for liability, property, workers’ compensation, and other protections to safeguard the business.
- Technology and Software Fees Costs for point-of-sale systems, scheduling software, and membership management tools.
- Cleaning Services Routine professional cleaning to maintain hygiene and a pleasant customer experience.
Managing these costs efficiently is crucial to maintaining profitability and delivering a high-quality service for both pets and their owners.
Splash and Dash Franchise Fees
Here’s a breakdown of the ongoing fees for the Splash and Dash franchise that you should consider:
- Royalty Fee Franchisees pay 8% of adjusted gross sales. This fee is due weekly every Tuesday and supports continued access to the business model, branding, and operational guidance.
- Brand Development Fund Contribution A fee of 2% of adjusted gross sales is also due weekly on Tuesdays. This contribution goes towards national and regional marketing initiatives to enhance brand awareness.
- Potential Additional Fees Be prepared for other potential costs such as technology upgrades or training fees, depending on franchise requirements.
These fees are essential to maintaining your franchise’s growth and brand presence while receiving ongoing support from the franchisor.
Splash and Dash Franchise Earnings
Based on the most recent data, the franchise’s median gross sales reached $646,573. For an owner-operator, this translates to estimated earnings of around $116,000 after accounting for operating costs, such as staffing, rent, inventory, and utilities. This suggests a healthy return, especially for those who manage the business hands-on and carefully monitor expenses.
Owner-operators can achieve strong profitability by maintaining operational efficiency, optimizing customer flow, and delivering quality services consistently. These earnings reflect a promising potential in the pet services industry, which continues to see high demand.
How to Open a Splash and Dash Franchise
Becoming a Splash and Dash franchisee is a rigorous process that involves financial scrutiny, extensive training, and thorough evaluation.
The full process for how to open a Splash and Dash franchise is outlined below:
- 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).
- Introductory Call After your inquiry is reviewed, a franchise development representative will contact you to discuss the brand, business model, and investment details. This call allows both parties to determine if there’s a good fit and answer preliminary questions.
- Franchise Application If you’re interested in moving forward, you’ll complete a formal franchise application. This includes information about your financial status, business experience, and goals. The franchisor uses this to ensure you meet their qualifications.
- Discovery Day Attend Discovery Day at the company’s headquarters or a designated location. You’ll meet the leadership team, tour the facilities, and learn in-depth details about operations, support, and expectations.
- Franchise Agreement Signing If both parties decide to proceed, you’ll sign the franchise agreement and pay the initial franchise fee. This step officially grants you the rights to operate under the brand.
- Site Selection & Lease Negotiation With assistance from the franchisor, you’ll identify a suitable location for your business. They may also provide support in negotiating lease terms and ensuring compliance with brand standards.
- Training Program Participate in the franchisor’s comprehensive training program, covering operations, customer service, marketing, and financial management. This often includes both classroom instruction and hands-on experience.
- Store Build-Out & Setup Oversee the construction, design, and setup of your location, guided by the franchisor’s specifications. This step includes installing equipment, signage, and necessary technology.
- Pre-Opening Marketing & Hiring Launch marketing campaigns to generate buzz in your community and hire qualified staff. The franchisor may offer guidance in recruitment and training to ensure a smooth launch.
- Grand Opening Host your grand opening with the support of the franchisor. This marks the start of operations, with the franchisor providing ongoing support to help you succeed and grow your business.
Pros & Cons
Pros
Established Brand Recognition: This franchise has a strong presence in the pet care industry, giving you immediate credibility and customer trust.
Recurring Revenue Model: Subscription-based services for regular grooming appointments help ensure consistent cash flow and client retention.
Booming Pet Industry: The U.S. pet industry is expected to surpass $150 billion by 2025, providing a growing market for pet-related services.
Diverse Service Offerings: Services like grooming, pet supplies, and add-on treatments create multiple revenue streams for increased profitability.
Cons
High Competition: The pet care market is competitive, with established local groomers and national brands vying for customers.
Labor-Intensive Operations: Hiring and retaining skilled groomers can be challenging, especially in areas with high employee turnover.
Operational Costs: Ongoing expenses for supplies, maintenance, and employee wages can impact profit margins if not managed effectively.
Location Sensitivity: Success is often tied to securing a prime location with sufficient demand for pet services, which may affect your investment return.
