In this FDD Talk 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 2018 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 2018 FDD
- Section IV – Number of franchised and company-owned Fetch! Pet Care outlets at the start of the year and the end of the year for 2015, 2016, and 2017, based on Item 20 of the company’s 2018 FDD
- Section V – Presentation and analysis of Fetch! Pet Care’s financial performance representations, based on Item 19 of the company’s 2018 FDD, including information on the:
- 2017 average, median, maximum, and minimum revenue for the top 20%, upper middle 20%, middle 20%, lower middle 20%, lowest 20%, and all 61 franchised and 2 company-owned (separately stated) Fetch! Pet Care locations open at least 2 full years (i.e. open before January 1, 2016)
- 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 the 2 company-owned locations that the company owned for the entire year
- actual year-over-year revenue change for all 16 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
10 Things You Need to Know About the Fetch! Pet Care Franchise
Expands in Houston, Texas Area
1. In early 2018, Kate Zavala, owner of Bruno Bear, Inc., expanded her Fetch! Pet Care franchise in west Houston to include Katy, Texas. Zavala started her franchise in December of 2007 and has served the western areas of Houston since then.
2. Paul Mann, founder and chief marketing officer of Fetch! Pet Care, said, “It has been a delight working with Kate over the years, and we are all proud of the outstanding level of care she and her staff of professional, loving dog walkers and pet sitters provide to pets in their community. I’m excited by Kate’s desire to make a greater impact and look forward to witnessing her continued success.”
3. Currently employing approximately 14 local dog walkers and pet sitters, Zavala’s Fetch! Pet Care franchise provides pet care services such as puppy care, dog walking, cat and small pet sitting, pet taxiing, and day care to pets in west Houston, including all neighborhoods surrounding Memorial Drive from downtown all the way west to the Energy Corridor and beyond in Katy and Cinco Ranch.
Offers Specialty Services
4. Beyond traditional pet care services such as dog walking and pet sitting, Fetch! Pet Care offers a number of specialty services, including pet taxi services and help with medications. Through Fetch!’s taxi service, clients can have their pet transported to all of their pet’s appointments without needing to personally be there. Fetch!’s taxi service is safe, comfortable, and reliable and clients can easily schedule pet transportation whenever they need it. Fetch! says that it is able to transport almost any type and size of pet.
5. Fetch! has specially-trained pet sitters that are able to administer medication, including injections, subcutaneous shots, and fluids. Fetch! pet sitters can also make sure that your pet is receiving its monthly heartworm medication. The service provides flexibility and Fetch! is able to address a pet’s varied type and frequency of medication dosage.
6. While many places offer dog boarding, Fetch! Pet Care is one of the few pet service providers that offer in-home overnight sitting. Through the in-home service, a Fetch! pet sitter will come to a client’s home in the early evening to feed, water, play, and cuddle with their pet. The sitter will spend the night at the client’s home and depart the next morning after approximately 12 hours of care. This specialty service ensures that pets can maintain their regular routine while their owners are away.
7. Fetch! Pet Care was founded in 2002 by Paul Mann in Berkeley, California as a local pet care service. According to the company, Fetch! Pet Care is a humane alternative to kennel boarding and provides loving daily and at-home care to most any kind of pet. Mann started Fetch! after he learned about dog walking services after he moved to Berkeley from New York. Mann discovered that there was a need for reliable dog walking services in the area and launched Fetch! Pet Care to meet this demand.
8. Mann’s new business was an immediate success and for a while, he struggled to keep up with demand. Within a year, Fetch! Pet Care had 75 pet sitters on staff and over 1,000 clients. The first franchised Fetch! Pet Care location opened in 2004 in San Diego, California.
9. Over the next few years, Fetch! Pet Care grew across the United States and at its peak in the late 2000s, the company had over 200 locations. In recent years, Fetch! Pet Care has seen its number of units decline but the company is still seeking franchisees across the country.
Entrepreneur’s Franchise 500
10. Fetch! Pet Care did not rank on Entrepreneur’s 2019 Franchise 500 list.
Section II – Estimated Costs
- Please click here for detailed estimates of Fetch! Pet Care franchise costs, based on Item 7 of the company’s 2018 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 2018 FDD.
Section IV – Number of Franchised and Company-Owned Outlets
- Outlets at the Start of the Year: 106
- Outlets at the End of the Year: 98
- Net Change: -8
- Outlets at the Start of the Year: 98
- Outlets at the End of the Year: 86
- Net Change: -12
- Outlets at the Start of the Year: 86
- Outlets at the End of the Year: 75
- Net Change: -11
- Outlets at the Start of the Year: 5
- Outlets at the End of the Year: 5
- Net Change: 0
- Outlets at the Start of the Year: 5
- Outlets at the End of the Year: 8
- Net Change: +3
- Outlets at the Start of the Year: 8
- Outlets at the End of the Year: 2
- Net Change: -6
Section V – Financial Performance Representations (Item 19, 2018 FDD) and Analysis
Part 1 – 2017 Revenue for Locations Open at Least 2 Full Years (Open Before 01/01/2016)
- Actual results vary from business to business and the franchisor cannot estimate the results of any particular franchisee. The financial performance representations below are historic representations about the system’s franchised outlets (Table 1) and its franchisor-owned outlets (Table 2).
- Fetch! 2.0 was implemented in August 2018. Fetch! 2.0 changes certain aspects of the franchisee’s relationship with the franchisor, which includes a change in the term of the Franchise Agreement from 10 years to 5 years, a decrease in the total initial fees due to the franchisor from $19,000 to $12,000, and an increase in the level of services delivered by the franchisor to franchisees.
- All franchisees that signed a Franchise Agreement under Fetch! 1.0 will remain under Fetch! 1.0 unless they elect to operate under Fetch! 2.0. All new franchisees will operate under Fetch! 2.0.
- It is important to note that the financial data provided in this Item 19 is collected from franchisees who operate under Fetch! 1.0, and the results from operation under Fetch! 2.0 may be different. At this time, there is no financial data available that reflects a franchisee’s operation under Fetch! 2.0.
- 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 to it by its franchisees.
- The data set is comprised of 63 reporting units including 61 franchisees (Table 1) and 2 company-owned locations (Table 2).
- Of the 75 Franchise Agreements reported active at the end of 2017, 2 were associated with new locations open less than two full years, 9 were associated with multi-agreement locations, and 3 did not have two full years of operating data to compare, resulting in 61 franchisees included in the numbers.
- The 63 franchisee and company-owned reporting units were divided evenly into quintiles by annual sales volume. The arithmetic operations presented were applied consistently on each quintile of quantitative data.
Table 1 – Franchisees Open at Least 2 Full Years (Open Before 01/01/2016)