Detailed Estimates of Wag N Wash Franchise Costs Based on Item 7 (Estimated Initial Investment) of Wag N Wash’s 2021 Franchise Disclosure Document
1. Initial Franchise Fee: $49,500
- The Initial Franchise Fee is $49,500 for the purchase of a single Wag N Wash Business.
- If you purchase a Multi-2 Franchise or Multi-3 Franchise, the only additional initial cost that you will incur over the purchase of a single franchise will be the increase in Initial Franchise Fee until you open the additional Wag N Wash Businesses. The Initial Franchise Fee for a Multi-2 Franchise is $74,250 and allows you to open up to two Wag N Wash Businesses. The Initial Franchise Fee for a Multi-3 Franchise is $103,950 and allows you to open up to three Wag N Wash Businesses.
- Once you open additional Wag N Wash Businesses, you will incur the costs listed in this Item 7 (except for the Initial Franchise Fee) at the time you open the additional Wag N Wash Businesses. These costs may increase in the future depending on when you open the additional Wag N Wash Businesses.
2. Training Expenses: $500 to $5,000
- Wag N Wash provides training at its corporate office in Denver, Colorado or at another location designated by Wag N Wash.
- You must pay for airfare, meals, transportation costs, salaries, benefits, lodging, and incidental expenses for all initial training program attendees.
- Provided they attend the same initial training program, initial training is provided at no charge for up to three people and must include you (or your managing owner, if you are an entity) and up to two of your managers, one of which must be your designated manager if you have one.
- If additional initial training is required or more people must be trained, an additional fee will be assessed. The estimate in the table above is based on standard, reasonable expenses exclusively related to attending training.
- This estimate does not include any additional fees if you are unable to complete the initial training.
- If you are required to extend your initial training, you will pay more than the high estimate listed here (approximately $500 more per day, plus expenses).
3. Initial Training for Additional Person(s)/Extended Training: $500 to $1,500
- Your Initial Franchise Fee includes tuition for up to three people to attend Wag N Wash’s initial training program (provided they attend the same initial training program). If you desire to send more than three people, you must pay Wag N Wash a fee of $1,000 per person, per trip (you are responsible for the cost of travel, lodging, meals, and personal expenses for the additional person(s)).
- Wag N Wash may extend any portion of the initial training program that you do not successfully complete and you will pay a fee of $500 plus any additional costs and expenses you or your attendees incur.
- The low estimate assumes you will not elect to send any additional person(s) to the initial training. The high estimate assumes you elect to send one additional person and you experience an extended training requirement.
4. Leasehold Improvements: $50,000 to $310,000
- Your improvements, which are covered by the Leasehold Improvements cost estimate, may include remodeling, plumbing, electrical, sheet rock, framing, painting, wall coverings, drop ceiling, HVAC, lights, fixtures, interior decoration, etc., all of which must be approved by Wag N Wash.
- The low estimate shown assumes that the space does not require additional HVAC, restrooms, or grease traps, nor extensive leasehold improvements.
- Build-out costs can fluctuate widely based on the size of your Center and local construction costs. The low end of the range is based on a Center located in a market with lower construction costs and at 2,800 square feet. The high end of the range is based on a Center with higher construction costs and at 3,500 square feet.
- You may be able to negotiate various terms with your landlord for a significant landlord contribution for these expenses known as Tenant Improvement (“TI”).
5. Architectural/Engineering Fees: $5,000 to $12,000
6. Site Opening Assistance: $30,000
- You will pay Wag N Wash a fee for site opening assistance (“SOA”). Wag N Wash’s SOA fee includes site identification, lease negotiation, site design and construction, opening support, and soft and grand opening marketing assistance.
7. Furniture, Fixtures, Equipment: $20,000 to $90,000
- Major equipment purchases need to be made through designated suppliers. You must pay all freight costs and taxes, if applicable.
- The low end assumes that used equipment that meets Wag N Wash’s standards and specs are available in your area.
8. Signage: $5,000 to $10,000
- Signs will be made locally at your cost through a designated third-party vendor. Signage includes, but is not limited to, exterior raceway signs, window clings, and interior graphics and signs. All signs must conform to Wag N Wash’s specifications and will cost between $5,000 and $10,000.
9. POS Computer Hardware: $2,000 to $4,000
- The estimated initial investment includes costs related to the purchase of specified computer hardware. The low estimate is the fee for one desktop computer and POS station standard hardware setup and the high estimate includes additional POS stations and optional back office POS system. If Wag N Wash requires, you must provide it with electronic access to certain daily information.
10. POS Set-Up Fee: $2,500
- This estimate includes the set-up fee for your POS computer system.
11. Inventory and Supplies: $30,000 to $50,000
- Opening inventory items must be purchased from Wag N Wash’s approved suppliers and include such items as pet food, pet toys, collars and leads, treats and rawhides, kennels and beds, supplements, shampoos and grooming aids, cat litter and supplies, and miscellaneous gear and supplies. Some of these items will be Wag N Wash private label products.
- The minimum amount of initial inventory necessary for the opening of your Wag N Wash Business is approximately $30,000 to $50,000. This amount may vary depending on the size of your Center. These estimates are based on a 2,800 to 3,500 square foot Center.
- The estimates for inventory are for the minimum needed to open the Center. You will want to increase the inventory once your Wag N Wash Business is fully operational.
- It is not necessary to be fully stocked for the initial store opening if you have the minimum number of specific inventory items that Wag N Wash recommends.
- Items necessary for operating your Wag N Wash franchise may be purchased directly from a vendor of your choice or from designated suppliers.
12. Store Use Equipment and Supplies, Office Supplies, Bakery Supplies: $2,000 to $4,000
- You must purchase store use equipment such as smallwares, office supplies, bakery smallwares, and bakery ingredients either from an approved supplier or from designated suppliers. All items must be purchased prior to opening.
13. Logo Gear and Uniforms: $500 to $1,000
- You must purchase logo gear and uniforms from Wag N Wash’s designated suppliers. You are required to have at least one clean apron per employee per shift in the bakery and grooming areas. You are also required to have two shirts for each part-time employee and four shirts per each full-time employee.
14. Utility, Lease, and Security Deposits: $1,000 to $15,000
- This estimate anticipates that your rent commencement date will start approximately 90 days after you take possession of the Wag N Wash Business and provides for rent payment for one month, an initial security deposit, and a utility deposit. If you are required to pay rent prior to this date, your expenses may be greater than what is indicated in the chart.
- Wag N Wash estimates that a typical Wag N Wash Business will need between 2,800 and 3,500 square feet of space.
- There are a variety of factors that can affect lease rates, the most prominent being location and market conditions.
- In addition, most leases are triple net leases which require the tenant to pay rent plus all taxes, insurance, and maintenance expenses, while other leases my charge a variable rent based on a percentage of your income, with no fixed minimum rental charge. This estimate does not account for triple net expenses or other amounts beyond the base rental rate.
- You will generally incur certain deposits with local utilities such as electric, telephone, gas, water, and others if you are a new customer.
15. Initial Advertising: $0 to $7,000
- The high estimate includes the recommended initial advertising expenditure and reflects the costs of promotional materials used for local advertising such as placards, posters, brochures, etc., as well as the expense involved for media advertising that may be desired outside the funds from the Site Opening Assistance Fee.
- The low estimate assumes you do not make any additional initial advertising expenditures.
16. Licenses and Permits: $500 to $2,500
- This estimate includes costs such as pre-construction and operating licenses and permits. Licenses may include those for operation of a pet grooming business, tax licenses, and any other licenses required by the local authorities where your Center is located. Your actual costs may vary from the estimates based on the requirements of local government agencies.
17. Alarm/Surveillance System: $0 to $500
18. Internet/Phone Lines: $200 to $1,000
19. In-Store Signage: $1,000 to $2,000
- This estimate includes in-store signage for the wash, grooming, bakery, and retail areas, and must be purchased through Wag N Wash’s approved supplier.
20. Music Source Start-Up Equipment: $1,350
21. Professional Expenses: $1,500 to $5,000
- Wag N Wash strongly recommends that you hire a lawyer, accountant, or other professional to advise you on this franchise offering. Rates for professionals can vary significantly based on area and experience.
22. Miscellaneous Opening Costs: $3,000 to $5,000
- This estimate is for budgeting purposes to account for unanticipated expenses that you may incur during the operation of your Wag N Wash Business. This amount includes estimated operating expenses you should expect to incur during the first three months of operation, not including any revenue generated by your Wag N Wash Business. It includes Royalties, advertising, payroll costs, and other operational expenses. These figures do not include any taxes that you may pay.
- You should check with your local and state governmental agencies for any taxes that may be assessed.
- Most new franchisees hire part-time or weekend employees during the initial period.
23. Additional Funds for 3 Months: $20,000 to $65,000
- These amounts represent Wag N Wash’s estimate of the amount needed to cover your expenses for the initial three-month start-up phase of your Wag N Wash Business. They include general expenses you may encounter during the start-up phase, such as employees’ salaries, Technology Fee payments, and three months of the $300 POS Software License and Maintenance Fee.
- They also include estimated insurance premiums of $1,500 to $3,000 for your first three months of operation. You must obtain and maintain, at your own expense, the insurance coverage Wag N Wash requires, and satisfy other insurance-related obligations.
- These amounts also include estimated real estate lease payments of $25,000 to $45,000 for the first three months of operation. Your space will vary depending on your needs, but Wag N Wash estimates you will need between 2,800 and 3,500 square feet to start with.
- Wag N Wash relied on its experience in the sale of Wag N Wash franchises as well as the experiences of its officers who have operated Wag N Wash Businesses since 1999. These figures are estimates, and Wag N Wash cannot guarantee that you will not have additional expenses starting your Wag N Wash Business.
24. Total Estimated Initial Investment: $226,050 to $673,850