In this FDD Talk 2017 post, you’ll learn the following:
- Section I – Background information on the Fetch! Pet Care franchise opportunity, including relevant news updates
- Section II – Estimated initial investment for a Fetch! Pet Care franchise, based on Item 7 of the company’s 2017 FDD
- Section III – Initial franchise fee, royalty fee, marketing fee, and other fees for a Fetch! Pet Care franchise, based on Items 5 and 6 of the company’s 2017 FDD
- Section IV – Presentation and analysis of Fetch! Pet Care’s financial performance representations, based on Item 19 of the company’s 2017 FDD, including information on the:
- 2016 average, maximum, and minimum revenue (and year-over-year average percentage change) for the top 20%, upper middle 20%, middle 20%, lower middle 20%, lowest 20%, and all Fetch! Pet Care locations open at least 2 full years (i.e. open before January 1, 2015)
- aggregate location sales revenue; location cost of goods sold; gross profit; recruiting, training, and education; location marketing; general and administrative expenses; taxes, fees, licenses, permits; and net operating contribution for all 5 company-owned locations purchased from a franchisee that joined the company as an officer, for the entire two years of company ownership
- actual year-over-year revenue change for all 14 Fetch! Pet Care locations transferred since 2012 that have at least the full twelve months under the new franchisee’s management needed to calculate the “Following Months 1 to 12 Sales” figures
Section I – Background Information
11 Things You Need to Know About the Fetch! Pet Care Franchise
New Company President
1. At the end of February, Fetch! Pet Care appointed James Mowery as its president. Prior to joining Fetch! in 2014, Mowery served as president of a nationwide tax franchise. In his new role, Mowery will assume responsibility for system-wide growth and maximizing franchisee performance throughout the franchise system.
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2. Fetch! Pet Care’s Chairman Harry Loyle said, “James has been a key part of our success and we are thrilled to promote him to president. His accomplishments in strategic planning, integrating teams, implementing innovative technology as well as a keen eye toward process improvement align perfectly with what is needed to fuel the next stage of growth for Fetch! Pet Care.”
3. In addition to Mowery’s appointment, Fetch! announced that its founder, Paul Mann, was appointed Chief Marketing Officer and will assume responsibility for developing marketing strategy, assisting franchisees to implement local territory marketing initiatives, developing national campaigns and partnerships, as well as franchise development activities to drive brand and unit growth.
Expands Franchise Offering in Virginia and Maryland
4. In early September, Fetch! Pet Care announced that it is expanding its franchise development efforts in the Maryland and Virginia regions. According to James Mowery, the company’s president, these markets have “proven to be financially strong, virtually recession-resistant, and still have many available territories that are filled with hundreds of thousands of dogs and cats that need daily pet care services while their owners are away.”
5. The company says that it has also identified another 170 geographical territories to expand into and that it has been investing heavily in sophisticated technology, advanced processes and procedures, and world-class support that are producing outstanding service reviews from Fetch! Pet Care’s clients nationwide.
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One of the Oldest Locations Celebrates Its 10th Anniversary
6. Fetch! Pet Care has been franchising for over 13 years, but there have been many closures over that period of time. One of the system’s oldest locations, Fetch! Pet Care of Silver Springs, Maryland, had its 10-year anniversary celebration toward the end of June.
7. The owner, Jaime Deason, invited the location’s loyal clients and walkers to have drinks and snacks at a downtown Silver Springs restaurant – pets on leashes were invited to celebrate as well. The location also announced that it was going to hold a fundraising silent auction of pet care products and services for Your Dog’s Friend, a nonprofit organization whose goal is to help keep adopted dogs from being returned to shelters by educating and supporting their humans.
8. Fetch! Pet Care was founded in 2002 by Paul Mann in Berkeley, California. After Mann moved to California in 2001, he met the dog walker for the previous owners of the house he had just purchased and immediately became interested in this service.
9. After speaking with the dog walker, Mann did more research and realized that dog walking could be a lucrative opportunity. He also learned that there was a need for more reliable dog walkers and felt he could provide a high-quality dog walking service.
10. Mann’s service was immediately successful and within a year he had more than 75 employees and 1,000 clients. Fetch! Pet Care began franchising in 2004 and at the company’s peak there were more than 200 locations across the U.S. Since around 2012, the company has been in decline and there are currently less than 90 Fetch! Pet Care locations in the country.
Entrepreneur’s Franchise 500
11. Fetch! Pet Care has only ranked on Entrepreneur’s annual Franchise 500 list a few times in the last decade. The company’s highest rank was No. 166 in 2011, while its lowest rank was No. 498 in 2007.
Section II – Estimated Costs
- Please click here for detailed estimates of Fetch! Pet Care franchise costs, based on Item 7 of the company’s 2017 FDD.
Section III – Initial Franchise Fee, Royalty Fee, Marketing Fee, and Other Fees
- Please click here for detailed information on Fetch! Pet Care’s initial franchise fee, royalty fee, marketing fee, and other fees, based on Items 5 and 6 of the company’s 2017 FDD.
Section IV – Financial Performance Representations (Item 19, 2017 FDD) and Analysis
Part 1 – Sales Revenue for Locations Open at Least 2 Full Years
- Actual results vary from business to business and the franchisor cannot estimate the results of any particular franchisee. The financial performance representation below is a historic representation about the franchise system’s outlets.
- Gross sales are defined as gross revenues, less discounts, coupons, and refunds, from the sale of pet sitting, dog walking, boarding, and miscellaneous pet care services or any other services or products offered or sold from each location.
- The data was collected as reported by each location through PPS, the franchise system point-of-sale software. The franchisor has not audited these amounts but it has no reason to doubt the accuracy of the information provided by its franchisees.
- The data set is comprised of 80 reporting units including 75 franchise-owned locations and 5 company-owned locations.
- Of the 86 Franchise Agreements reported active at the end of 2016, 2 were associated with new locations open less than two full years, 5 were associated with multi-agreement locations, and 4 did not have two full years of operating data to compare, leaving 75 franchise-owned locations included in the numbers.
- The 80 locations were divided evenly into quintiles by annual sales volume. The arithmetic operations presented were applied consistently on each quintile of quantitative data.
2016 Sales Revenue for Fetch! Pet Care Locations Open at Least 2 Full Years (Open Before 01/01/2015)