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Pet Butler Franchise Cost & Fees

Date of Incorporation: 2005

Franchising Since:  2005

Headquarters: Texas

Description: The franchisor is Pet Butler Franchise Services Corp., which sells franchises for businesses that offer and sell pet waste cleanup and removal services and related products and services under the trademark "Pet Butler."

Franchise Offer:
The franchisor gives the right to sell pet waste cleanup and removal services and related products and services in a designated geographic area. Franchises operate from 1 business location located within the territory described in the franchise agreement or located within a 20 mile radius around the boundaries of the territory under the Pet Butler business system.

Financial Assistance: The franchisor does not offer direct or indirect financing, and does not guarantee any notes, leases or other obligations

Training and Assistance: Before the franchisee opens for business, the Operations Manager and any owners whom are required must have attended and satisfactorily completed the initial orientation and training programs. The franchisor provides the initial training program at no additional charge. Initial training generally requires approximately 1 week.

Territory: The franchisee will be granted a territory delineated by specific geographic boundaries. As long as the franchisee is in good standing during the term of the Franchise Agreement the franchisor will not operate, or license anyone other than the franchisee to operate, a Pet Butler Business in the territory.

Term of Agreement and Renewal: The length of the franchise term is 10 years, with the option to renew for 2 additional 5 year terms.

Obligations and Restrictions: The operation of the Pet Butler business in the territory must be directly supervised by a person designated as the operations manager. The operations manager may be one of the franchisor’s owners, but need not be. The franchisee may offer and sell only the products and services that have been periodically specified. The franchisee may not offer or sell any products or services that have not been authorized, and must discontinue any products or services that are disapproved.

Total Number of Units: Over 120 units

Investment Tables:

Initial Investment:

Name of Fee Low High
Initial Franchise Fee $22,900 $22,900
Service Vehicle $0 $1,050
Toolbox $150 $400
Office Lease $0 $1,000
Mobile phone/e-mail device $0 $300
Furniture, Fixtures, & Equipment $0 $1,000
Computer Hardware & Software $0 $1,000
Insurance $200 $2,500
Initial Local Advertising
$12,000 $14,000
Initial Training $200 $2,000
Additional Vehicle Signage $0 $700
Professional Services $1,000 $3,000
Additional Funds (for first 3 months of operation) $3,000 $15,000
Total $39,450   $64,850

Ongoing Fees:

Name of Fee Amount
Royalties The greater of (i) 8% of Gross Sales or (ii) $25 per week
National Marketing, PR and Advertising Fund Contribution The greater of (i) 2% of Gross Sales or (ii) $10 per week
Billing and Collections Center Fees The greater of(i) $1 per current customer or (ii) $40 per week
Customer Billing fees (for paper invoices only) Cost, currently $2,75 per invoice
Delinquent account collection fee Varies
Local advertising expenditure requirement $16,000 during the first agreement year and $24,000 during each subsequent agreement year.
Customer welcome packets and one month packets Reasonable fee, currently $2,95 per welcome pack and $1.25 per one month packet
Marketing and customer relations materials Reasonable fee
Special Promotional Programs Varies
Additional Training At franchisor’s option, a reasonable fee to cover the cost of training materials
Training for Replacement Personnel At franchisor’s option, a reasonable fee based on rate of $200 per day if the training is conducted during a regularly schedule training class or $500 per day plus trainers' expenses if the training is conducted in a one-on-one session
On-Site Remedial Training At our option, a reasonable fee based on our rate of $500 per day plus our trainers' expenses
Transfer Fee $4,000, plus costs, including attorneys' fees
Securities Offering Fee Reasonable costs to review the proposed offering
Renewal Fee 25% of the then-current initial franchise fee
Supplier Approval Fee Reasonable expenses
Re-Inspection Fee Cost of re-inspection
Audit Fee Cost of audit
Insurance Fee A reasonable amount based on expenses
Interest 1.5% per month or the maximum lawful rate
Tax Adjustment The amount of the tax
Indemnification Varies
Enforcement Costs Cost to enforce the Franchise Agreement. Includes legal and court costs and reasonable attorneys' fees

 Date of FDD: 2007

The above information has been taken from the UFOC/FDD of Pet Butler
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