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PetLand Franchise Cost & Fees

Date Incorporation: 1967

Franchising Since:  1972

Headquarters: Chillicothe, Ohio

 

Business Description: Petland franchisees operate a retail pet store offering to the general public a variety of pets, pet supplies, and pet-related items. Petland stores are generally located in outdoor shopping centers, although some Petland stores are located in enclosed malls and freestanding locations.

 

Franchise Offer: Petland operates and licenses franchisees to operate pet stores under either the brand name “Petland” or “Safari Stan's Pet Center” in a particular location. These stores sell a variety of pets, pet supplies, pet services and pet-related items to the general public.

 

Financial Assistance: Financing arrangements are generally the franchisee’s responsibility, although Petland assists the franchisee with the development of the business plan, the store development budget, and the loan request which is submitted to third party lenders. Franchisees of Petland may be eligible for expedited SBA loan processing through SBA's Franchise Registry Program. In Petland’s sole discretion, it may provide financing for a portion of the franchisee’s initial franchise fee, equipment and fixtures, and leasehold improvements. Petland does not receive direct or indirect payments for the placement of financing of franchisee obligations with any lender, but reserves its right to do so in the future. Petland may, but is not required to, guarantee the franchisee’s obligations to third parties.

 

Training and Assistance: Petland provides an initial training program for all franchisees, if the franchisee is establishing a new store or purchasing an existing store, Petland provides a Management Training program which includes approximately 39.5 hours of classroom work, a Hands-on Training program which includes approximately 16 hours of classroom work and 23.5 hours of hands on demonstration and role play. In addition, the franchisee must attend On the Job Training which consists of up to 77 hours of hands on, in store training at a store designated by Petland. If Petland, in its sole discretion, determines that a longer period of on-the-job training is required, it may so direct the franchisee. In that event, the franchisee will spend up to an additional two weeks in on-the-job training. Petland currently provides additional periodic training sessions and seminars. Generally, the franchise is able to attend on a voluntary basis, but the franchisee is required to attend at least one training session every year.

 

Territory: Each Petland franchisee can operate a Petland store and use the System and the Licensed Marks at their Franchised Location. The Territory is determined by taking into account demographic factors, competition and other stores in the area, and may have an approximate population of 25,000 persons although some territories may have more or less. Neither the franchisee nor other franchisees are prohibited or restricted from soliciting sales or accepting orders from customers residing outside of their Territory.

 

Term of Agreement and Renewal: The length of the initial franchise term is 20 years from the date the store initially opens for business. Upon meeting certain conditions, the franchisee can renew for one additional 20-year term.

 

Obligations and Restrictions: As a matter of our practice, the franchisee must participate personally in the direct operation of the franchised Petland store business to the extent necessary to insure full compliance with the Franchise Agreement and to insure that the business achieves the maximum sales possible. Franchisees must equip and supply the store only with items supplied either by Petland or suppliers approved by Petland, and, throughout the term of the Franchise Agreement, franchisees must maintain an inventory in the store approved by Petland. Petland has the right to enter the store at any time during store hours to inspect the operations and facilities for the purpose of determining compliance with standards.

 

Estimated Number of Units: 145

 

Investment Tables:

Initial Investment

Name of Fee Low High
Initial Franchise Fee $35,000 $35,000
Area Development Fee Varies
Real Property Varies
Furniture, Fixtures, Equipment And P.O.S. System $60,000 $275,000
Remodeling, Lease-hold Improvements And Decorating Costs $15,000 $250,000
Inventory Required to Begin Operation $75,000 $250,000
Utility Security Deposits $0 $6,000
Lease Deposit $0 $20,000
Advertising Associated with Store Opening $5,000 $20,000
General Liability, Casualty And Other Insurance As Required $5,000 $15,000
Additional Funds - 1 to 3 months $35,000 $100,000
Travel, Room And Board To Attend Initial Training Program per Person (Depending On Distance To Ohio) $2,000 $5,000
Construction Plans and Specifications $12,500 $12,500
Fixture Coordination, And Construction Services Fee $10,000 $10,000
Store Merchandising And Set Up Assistance Fee (Initial Merchandise Planograms, Merchandising And P.O.S. Setup, And Detail Bar Coding) $7,000 $10,000
On-Site Training Team And Grand Opening Assistance $10,500 $12,000
Licenses And Fees $500 $2,000
Uniforms $1,000 $3,000
Estimated Total (Excluding Real Estate) $273,500 $1,024,000

 

Other Fees

Type of Fee Amount
Royalty 4.5% of total Gross Revenues.
Late Fee 10% on amounts past due.
Interest 1.5% per month on amounts past due.
Local Advertising $5,000-$20,000
Advertising Associated with Store Opening 1.5% per month on amounts past due.
National or Regional Advertising Currently there is no fee, but if implemented it will be 1% to 2% of Gross Revenues.
Additional Training Fee Currently there is no fee, but Petland reserves the right to charge a fee, not to exceed $1,500 per program.
Transfer Fee 1/2 of the then-current franchise foe for a new franchise store.
Audit Fee Actual cost of audit, plus late payment fee.
Delinquent Report Fee $25.00 per day for each day a report is past due, plus all of Petland's expenses if the franchisor must hire accountants to prepare the reports.
Accounting Fee $450 per month.
Point of Sale System - User Maintenance Fee $129 per month.
Insurance Cost of Insurance. If the franchisee fails to Insure, cost of insurance plus $10.00 administration fee per day.
Supplier Approval Reimbursement of Petland’s expenses to evaluate suppliers.
Ongoing Purchases from Petland Invoiced amount from Petland for goods purchased.
Attorney’s Fees and Costs Varies.
Reimbursement of Expenses to Resolve Customer Complaint Actual amount of Petland’s expenses.
Indemnification Varies.

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

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