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Pet Depot Franchise Cost & Fees

Date of Incorporation: 1991
Franchising Since: 1997
Headquarters: Glendora, California

Business Description: Labrador Franchises Inc. (LFI) is the franchisor. The Pet Depot® franchise is an owner-developed and operated pet care business, which offers pet food, pet supplies, pets for sale, veterinary services, grooming services, and other related services to the general public.

Franchise Offer: The franchisor offer franchises for the operation of retail pet stores and animal hospitals under the trade name “Pet Depot.” It offers 6 franchise programs:

  1. Retail Pet Store Program
  2. Animal Hospital Program
  3. Combines Retail Pet Store/Animal Hospital Program
  4. Boutique Retail Pet Store Program
  5. Conversion Franchise Program
  6. Area Development Program

Financial Assistance: Neither the franchisor nor any affiliate offer direct or indirect financing to franchisees or guarantee any note, lease, or obligation of theirs in connection with the purchase or establishment of Store and/or Hospital or a Development Area. The franchisor may from time to time refer franchisees to brokers or equipment leasing agents. The franchisor will not gain any revenue or commissions from any referrals to brokers or leasing agents.

Training and Assistance: Phase I training takes place at the franchisor's corporate headquarters located in Southern California and consists of approximately 40 hours. Phase II-III training takes place at other on-site locations, and consists of approximately 45 - 91 hours. Initial training will be held at regional training locations, at company-operated Stores, at approved Pet Depot Franchised Businesses owned by other franchisees and/or at the franchisee’s Store or Hospital. At a minimum, 2 people from the franchisee’s company must successfully complete both Phase I through Phase III training to the franchisor’s satisfaction before opening the Store or it can terminate the Franchise Agreement. The franchisor intends to periodically offer advanced refresher training programs and may require all Certified Managers or other personnel that it designates to attend specific training programs.

Territory: The Franchise Agreement does not grant franchises any exclusive territory. The franchisor may open another Pet Depot business wherever it chooses regardless of its proximity to the Franchised Location Furthermore, the franchise rights granted to franchisees are non-exclusive and do not confer any preferential right to serve particular customers.

Term of Agreement and Renewal: The length of the initial franchise term is 10 years. Two successive renewal options of 10 years each are available, if requirements are met.

Obligations and Restrictions: The franchisor does not require the franchisee, or the owner with a controlling interest, to personally devote full time and attention to managing and supervising all administrative and operational activities of your Store and/or Hospital, both in terms of managing development obligations and store operations. However, if the franchisee chooses not to assume these responsibilities, he/she must assign them to a member of his/her senior management who need not hold an equity interest in the franchise and who must successfully complete the initial training program and earn the designation of Certified Trainer. Franchisees must offer for sale and sell all of the products and services, and only those products and services that the franchisor approves or specifies for the Pet Depot System.

Estimated Number of Units: 40

Investment Tables:
Initial Investment for One Pet Depot Store (See FDD for other options)
Name of Fee Low High
Initial Franchise Fee $35,000 $35,000
Training $0 $500
Real Estate Costs and Leasehold Improvements $10,000 $85,000
Lease Review Fee $0 $1,200
Furniture and Fixtures $50,250 $113,500
Equipment $26,000 $60,000
Signs $6,000 $20,000
Computer System (Includes POS system and software) $11,000 $20,000
Professional Fees $4,000 $8,000
Security Deposits and Permits $2,000 $14,000
Opening Inventory $70,000 $128,000
Insurance $3,000 $6,000
Uniforms (Depending upon Number of Employees) $300 $2,000
Travel, Lodging and Other Expenses Connected with Attending Initial Training Program $2,000 $4,000
Grand Opening Advertising $8,000 $8,000
Additional Funds - 3 months $40,000 $50,000
Estimated Total $267,550 $555,200
Other Fees
Type of Fee Amount
Royalty Fee of New Stores and Hospitals 5% of Gross Sales.
Advertising Fee for New Stores and Hospitals 2% of Gross Sales.
Royalty Fee for Conversion Franchises No Royalty Fee payable on the Base Gross Sales. Franchisees will pay 5% of Gross Sales in excess of Base Gross Sales as a Royalty Fee.
Advertising Fee for Conversion Franchises 2% of Base Gross and 2% of Gross Sales.
Gross-Up Fees Varies with circumstances.
Late Fees $200 plus interest of 1.5% per month.
Renewal Fees 25% off the then-current initial franchise fee.
Transfer Fee (Franchise Agreement) $1,000 - $25,000, plus the franchisor’s out of pocket costs associated with the transfer, including attorneys’ fees associated with the transfer.
Transfer Fee (Developer Agreement) $5,000
Remedial Training $150 per person, per day.
Additional On-Site Assistance $150 per person, per day.
Lost or Destroyed Operations Manual $1,000 per copy.
Audit LFI Costs of audit ($1,000 - $10,000).
Reimbursement of monies paid by the franchisor on the franchisee’s behalf Varies with circumstances.
Costs and Attorneys’ Fees Varies with circumstances.
Supplier Testing Fee $500 - $2,500
Interim Management Fee Not to exceed $500 per day.
Indemnification Will vary under circumstances.
Advanced and Refresher Training Courses $150 per person, per day.
Repairs Cost of labor and materials plus a 25% service charge plus reimbursement for the franchisor’s direct costs to supervise the work and other related expenses.

The above information has been taken from the FDD of Pet Depot. Year of FDD: 2015

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