In this FDD Talk post, you’ll learn the following:

• Section I – Background information on the Pet Wants franchise opportunity, including relevant news updates

• Section II – Estimated initial investment for a Pet Wants franchise, based on Item 7 of the company’s 2019 FDD

• Section III – Initial franchise fee, royalty fee, marketing fee, and other fees for a Pet Wants franchise, based on Items 5 and 6 of the company’s 2019 FDD

• Section IV – Number of franchised and company-owned Pet Wants outlets at the start of the year and the end of the year for 2016, 2017, and 2018, based on Item 20 of the company’s 2019 FDD

• Section V – Presentation and analysis of Pet Wants’ financial performance representations, based on Item 19 of the company’s 2019 FDD, including information on the:

• 2018 average, median, highest, and lowest gross revenue for the 13 Pet Wants franchisees that were open for at least three years as of December 31, 2018 and reported gross revenue for the period from January 1, 2018 to December 31, 2018

Section I – Background Information

19 Things You Need to Know About the Pet Wants Franchise

Creates Founder’s Award and Recognizes Michele Hobbs and Amanda Broughton

1.  In early March 2019, Pet Wants operations and leadership wanted to recognize founders Michele Hobbs’ and Amanda Broughton’s vision, tenacity, and leadership and created a new award in their honor – the Founder’s Award of Excellence. Hobbs and Broughton were presented with the first annual Founder’s Award of Excellence at the Pet Wants national conference on February 19, 2019.

2.  Scott Hoots, president of Pet Wants, said, “Michele and Amanda have touched the lives of every single person who has experienced Pet Wants – our franchisees, corporate team members, franchisee team members and, most importantly, our customers and their pets. They have shed a lifetime of blood, sweat and tears in support of the Pet Wants products, brand and franchise and it’s my honor to recognize their passion and entrepreneurial spirit by creating the Founder’s Award of Excellence and presenting the first one to Michele and Amanda.”

3.  Hobbs and Broughton founded Pet Wants in 2010 and, after seeing the demand for their products and the success of the business, they sold a few franchises nearby. In 2015, they partnered with Franchise Funding Group to help jumpstart their growth and, within three years, the company was up to nearly 100 franchises.

4.  Hobbs added, “It’s nice to know the legacy of Pet Wants now has an award that others can aspire to win. We hear from franchisees repeatedly that they bought into the franchise system specifically because of our enthusiasm and passion, which is what has driven our success from the beginning. Knowing that people recognize that passion and that enthusiasm is so encouraging as we work to build Pet Wants well into the future.”

5.  Pet Wants’ specially-crafted, private label pet food formulas are made in small batches with fresh, natural ingredients enhanced with vitamins and minerals for a complete and balanced diet in every bowl. Pet Wants offers multiple blends of dog and cat food formulas as well as healing salve, calming balm, anti-itch spray, paw wax, and more.

6.  Pet Wants has a 100-percent, money-back guarantee on the freshness and quality of its food, and the company only sources the best salmon, chicken, lamb, brown rice, and other ingredients available. There’s no sugar added, no fillers, and no animal by-products, and Pet Wants never uses corn, wheat, soy, or dyes, which makes the food great for animals with allergies.

7.  Although the franchise growth has been exciting and Hobbs and Broughton are pleased to welcome new franchisees to the “pack,” the growth has also created some challenges for them locally. With local franchisees surrounding the city of Cincinnati, especially on the west side and in Northern Kentucky, their own service area and business has been reduced to mostly the urban core of Cincinnati and their stores in Over-the-Rhine.

8.  According to Hobbs, “We’ve spent the last couple years re-focusing on our core metro customers and finding new avenues into businesses and homes to increase our delivery sales. As we look at the rest of 2019, we expect to continue those rebuilding efforts as we look to book more than 200 events outside of operating our two stores, the office and delivery. We recently leased a new 5,000-square-foot logistics facility to more efficiently operate our delivery and store operations. We’re looking forward to the future.”

Announces 2019 Scholarship Winner

9.  In mid-September 2019, Pet Wants announced the winner of the company’s first national scholarship – Morgan Jackson, who attends Clemson University. The $1,000 scholarship was open to any student pursuing a 2- or 4-year degree at an accredited college or university.

10.  The essay topic for the Pet Wants scholarship was: Several colleges have begun to allow pets on campus and even in dorms, with the option to live with their owners. Is this something all colleges should institute? Why? Why not? For example: How might pets help or hinder a student’s academic/social life, health, etc.?

11.  Scott Hoot, president of Pet Wants, said, “Morgan’s submission stood out immediately to our team because it was clear she has a passion for animals, combined with a tremendous drive to be an exemplary student. Morgan showed great honesty and vulnerability in her submission. It was clear that she recognizes the bond between people and their pets.”

12.  The Pet Wants scholarship was one of five scholarships offered by Strategic Franchising Systems, Inc. last year. Strategic Franchising Systems, the overarching company for Pet Wants, Caring Transitions, Fresh Coat Painters, TruBlue Total House Care, and The Growth Coach, has been creating and providing franchise business models to help people make their dreams come true for more than 30 years. The scholarship program was created to help the dreams of the next generation come true.

13.  Hoots added, “At Pet Wants, we embrace those who dream big and work hard to follow those
dreams. That’s why we created the Pet Wants college scholarship program. We are what I call a
mission-centric franchise – our owners enhance people’s lives every day by enhancing the lives of their pets. The Pet Wants college scholarship program allows us to enhance the lives of college students by supporting their dream of a strong education.”

Company History

14.  Pet Wants was founded in 2010 by Michele Hobbs and her wife Amanda Broughton after they
discovered that their dog, Jackson, had allergies and a host of other health problems that included painful skin rashes. Unfortunately, the pet food that Hobbs’ vet recommended made Jackson’s health problems worse.

15.  “We spent a lot of money at the veterinarian, and he just never got better,” said Hobbs. Like many other pet lovers, Hobbs turned to the Internet and began researching his symptoms. Something quickly jumped out. “I was reading about celiac disease, and the skin irritation is where it starts.”

16.  After extensive research, Hobbs and Broughton found that no commercially available food would address Jackson’s health problems. So, they decided to open a pet food store. Hobbs and Broughton found a manufacturer in upstate Ohio who would make limited runs of formulas and started making their own food. As the food they ordered kept selling out, Hobbs quickly realized that there was a huge demand for fresh, healthy dog food.

17.  After a few years of success, Hobbs decided to partner with Gary Green and Strategic Franchising Systems, Inc. Hobbs and her new business partners started franchising Pet Wants in 2015. There are now locations in over 24 states.

18.  Pet Wants offers two types of franchise models: a mobile model and a retail store model, with both offering delivery services.

Entrepreneur’s Franchise 500

19.  Pet Wants ranked No. 376 on Entrepreneur’s 2020 Franchise 500 list.

Section II – Estimated Costs

• Please click here for detailed estimates of Pet Wants franchise costs, based on Item 7 of the company’s 2019 FDD.

Section III – Initial Franchise Fee, Royalty Fee, Marketing Fee, and Other Fees

• Please click here for detailed information on Pet Wants’ initial franchise fee, royalty fee, marketing fee, and other fees, based on Items 5 and 6 of the company’s 2019 FDD.

Section IV – Number of Franchised and Company-Owned Outlets

Franchised

2016

• Outlets at the Start of the Year:  18
• Outlets at the End of the Year:  55
• Net Change:  +37

2017

• Outlets at the Start of the Year:  55
• Outlets at the End of the Year:  69
• Net Change:  +14

2018

• Outlets at the Start of the Year:  69
• Outlets at the End of the Year:  84
• Net Change:  +15

Company-Owned

2016

• Outlets at the Start of the Year:  0
• Outlets at the End of the Year:  0
• Net Change:  0

2017

• Outlets at the Start of the Year:  0
• Outlets at the End of the Year:  0
• Net Change:  0

2018

• Outlets at the Start of the Year:  0
• Outlets at the End of the Year:  0
• Net Change:  0

Section V – Financial Performance Representations (Item 19, 2019 FDD) and Analysis

• Presented below are historic Gross Revenue figures for certain franchised Pet Wants business owners for the one-year period from January 1, 2018 through December 31, 2018.

• Only data from franchisees who were open for at least three years as of December 31, 2018 and who reported Gross Revenue from January 1, 2018 through December 31, 2018 were included in the table.

• The information has been extracted from financial reports submitted to Pet Wants by its franchisees. The financial reports submitted to Pet Wants were prepared by the franchisee in most cases, not reviewed or audited by an independent accountant. Pet Wants has not audited or independently verified any of this information.

• There were 84 Pet Wants franchises (each franchise consists of a single franchise territory) in operation as of December 31, 2018, which were owned by 76 franchisees. Of those, 13 franchisees were open for at least three years as of that date and reported Gross Revenue for the period from January 1, 2018 to December 31, 2018.