There are few things more universally loved than Dogs, and for good reason. "Magical, brilliant, amazing and beautiful souls," as Ricky Gervais describes them.
Franchise opportunities in the dog care space have been blowing up in the last few years. Such businesses (whether boarding, day care, training, grooming, etc.) are attractive because (i) they 𝙣𝙚𝙚𝙙 to be local neighborhood businesses (somewhat immune from annhiliation by chewy.com or Amazon), (ii) folks will always prioritize spending money on the health and happiness of their kids and pets, and (iii) there seems to be an opportunity for consolidation (no huge national players in this space). Plus, who doesn't want to meet more dogs?
In the chart below, I've summarized Item 19 data from 5 leading dog care franchises:
Camp Bow Wow
Dogtopia
Woof Gang Bakery & Grooming
Scenthound
Central Bark USA
From looking at this data, the two conclusions I draw are:
1. Much longer "payback period" for businesses that offer doggy day-care and boarding, given the considerably larger up front capital investment.
2. Focusing somewhat more narrowly on dog GROOMING seems to offer the best ROI, with Woof Gang Bakery & Grooming particularly strong in that respect.
Looking at summary data like this highlights how misleading Gross Sales alone can be, with both Initial Investment and expected EBITDA essential for any real analysis.
*****
Note: Historical franchisee financial performance data in Item 19 of the FDD (to the extent available) is incredibly valuable, as its the only such system-wide data you are going to get. 𝗕𝘂𝘁.... such comparisons are most useful from a 30,000 foot directional view and shouldn't be viewed as precise. Franchisors have leeway in determining exactly what and who they measure, and some do more sales-oriented "massaging" of the data than others (legally). Closely review Item 19 of the FDD for any franchise opportunity that you are interested in.
And shout out to Dogtopia in the Domain (Austin, TX) for the amazing birthday cake we picked up for our beloved black lab, Sadie, recently! We loved it there!
#franchising #dogs #item19
Titus Chair for Franchise Leadership at Palm Beach Atlantic University’s Titus Center for Franchising. I connect people in franchising and oversee a 90+ member Advisory Board of franchise professionals.
2wAmazing growth and so well deserved.