Pet Butler Franchise Costs Examined on Top Franchise Blog (2020 FDD)

Detailed Estimates of Pet Butler Franchise Costs Based on Item 7 (Estimated Initial Investment) of Pet Butler’s 2020 Franchise Disclosure Document

1. Initial Franchise Fee: $12,500

You must pay Pet Butler an initial franchise fee of $12,500 for a Territory containing up to 50,000 single family dwelling units (SFDUs).

If you wish to obtain a Territory of more than 50,000 SFDUs, and Pet Butler approves, you must pay Pet Butler an additional fee of $0.25 for each SFDU over 50,000 SFDUs.

50% of the initial franchise fee is due when you sign the Franchise Agreement, and the remainder is due before training. The initial franchise fee is non-refundable, unless you attend training but do not complete it to Pet Butler’s satisfaction.

2. Vehicles and Decals: $1,001 to $1,101

A production vehicle can be purchased from a third party with $0 down and payments over 5 years, depending on your creditworthiness. If you were to purchase the production vehicle outright, the total cost would be approximately $23,800. Your initial costs will increase based on the amount of money you decide to put down when purchasing the production vehicle.

The production vehicle must meet Pet Butler’s standards and specifications and must be purchased from an approved supplier. Currently, production vehicles must be a two-wheel drive, extended-cab pickup truck equipped with single wheels on the rear axle.

You must purchase a basic decal package for your truck, which Pet Butler estimates will cost $501, and have a third-party professional apply it for you, which Pet Butler estimates will cost between $500 to $600 depending on factors like the going rate for your local market and the complexity of the application on the vehicle you have chosen.

3. Technology Equipment: $1,850

This amount includes the purchase of a smartphone, which Pet Butler anticipates to be $350; a tablet device and hard cover, which Pet Butler anticipates to be $500; and a computer hardware and software system, which Pet Butler anticipates to be $1,000.

You will also have to purchase a data plan for your smartphone and tablet device from a service provider, which will require you to enter into a service contract with the service provider. The cost of the data plan varies by service provider, but Pet Butler estimates that it will cost approximately $60 per month for the smartphone and tablet device.

You must also acquire and maintain Microsoft Office 365, which is $99 per year per user.

The amount disclosed above includes the smartphone and tablet device and a computer.

The costs for the first year for one Microsoft Office 365 license and a monthly data plan are accounted for in the “Additional Funds” category described below.

4. Opening Inventory and Supplies (Supply Package): $3,012

5. Initial Marketing Campaign Fee: $15,000

6. Initial Property Data Fee: $2,135

You must pay Pet Butler or its affiliate a fee for SGE to collect property data relevant for marketing within your Territory. Based on a Territory size of 50,000 SFDUs, Pet Butler estimates the fee to be $2,135 for a new Territory. The initial property data fee is non-refundable.

7. Training Expenses: $1,345

8. Insurance: $1,000 to $1,500

You must, at all times during the term of the franchise, maintain in force, at your sole expense, comprehensive public, product, and motor vehicle liability insurance against claims for bodily and personal injury, death, and property damage caused by or occurring in conjunction with the operation of the Franchised Business or otherwise in conjunction with the conduct of business by you under the Franchise Agreement.

9. 3 Months’ Rent: not applicable

You may operate a Franchised Business from a personal residence or, with Pet Butler’s approval, from an existing commercial facility.

This initial investment table does not reflect the potential cost of renting office or warehouse space, or the costs for any deposits for various utilities such as gas, electricity, sewer, water, telephone, and garbage disposal that you may need to make if you elect to rent office or warehouse space.

If you participate in the Pet Industry Professional Program, you may already be renting office or warehouse space in connection with your existing Pet Industry business and any lease payments and costs associated with the renting of that office are not reflected in this initial investment table.

10. Business Licenses and Permits: $0 to $100

11. Professional Fees (Lawyer, Accountant, Etc.): $0 to $1,500

12. Miscellaneous Opening Costs: $195

Miscellaneous opening costs include items such as paper towels, bleach, garbage bags, and trash totes.

13. Additional Funds for 3 Months: $3,500 to $4,000

During the initial phase of your operation, which Pet Butler estimates to be 3 months, you will need capital to support ongoing expenses such as payroll (excluding your salary and draws), supplies, insurance, monthly third-party software fees (including QuickBooks Online), monthly data plan, the license fee for the first year of one license for Microsoft Office 365, royalties, and advertising to the extent these costs are not covered by the gross sales of the Franchised Business.

It is expected that new businesses will usually generate negative cash flow. There is no assurance that you will not need additional working capital.

The estimated figures shown are based primarily on the costs incurred by Pet Butler’s affiliate, Chicagoland Scoopers, LLC, an Illinois limited liability company, which operates a Pet Butler Business.

14. Total Estimated Initial Investment: $41,538 to $44,238