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Dogtopia Franchise Cost & Fees

Date of Incorporation: 2002
Franchising Since: 2005
Headquarters: Phoenix, Arizona

Business Description: HTBH, LLC is the franchisor. Dogtopia Businesses are modem dog daycare centers that allow dogs to play and interact with other dogs in a fun, non-caged, supervised environment. In addition to daycare, other dog services offered include boarding, grooming, training and self-service washing. Dogtopia Businesses also offer dog products, such as leashes, collars, toys, dog food and dog treats, for retail sale.

Franchise Offer: Doptopia franchisees operate a business that offers services for dogs such as daycare, boarding and training, and that offers related products for retail sale.

Financial Assistance: The franchisor does not offer direct or indirect financing. The franchisor does not guarantee a franchisee’s note, lease or obligation. The franchisor has guaranteed a lease for a franchised location that was formerly a company location, because the guarantee was required by the landlord.

Training and Assistance: Initial training will take place at the franchisor’s operations and training center in North Bethesda, Maryland, or at another location it designates. Before initial training, the franchisor will provide franchisees with the required reading materials and videos that franchisees must complete before franchisees attend initial training. Initial training will consist of about 4 consecutive business days (Operations 1) and about 6 consecutive business days (Operations 2) of training. Franchisees must complete initial training to the franchisor’s satisfaction before they begin operation of the franchised business. In addition to initial training, the franchisor will provide franchisees with about 4 days of on-site operational assistance by 1 franchisor representative before and immediately after the opening of the franchised business. The franchisor may periodically require franchisees and their managers to attend additional training that it considers necessary, subject to a per-person limit of 2 days of in-person training per calendar year and 4 webinars per calendar year. Or, franchisees may request additional training from the franchisor.

Territory: Franchisees will be granted a protected territory for a single Dogtopia business that will generally contain a population of at least 100,000 and up to 150,000 individuals (based on the latest census statistical data provided by the U.S. Department of Commerce Bureau of the Census).

Term of Agreement and Renewal: The length of the initial franchise term is 10 years, plus the period of time from execution of the franchise agreement until the franchised business is first opened for business to the public. If requirements are met, the franchisee may renew the franchise for successive terms of 5 years each.

Obligations and Restrictions: The franchised business must always he under the direct full-time supervision of a Designated Manager, which is either the franchisee or an individual the franchisee selects. Franchisees may only use the Approved Location for the operation of the franchised business and you must not use, or permit the use of the premises for any other purpose without the franchisor’s written consent. Franchisees must offer the services and products the franchisor specifies from time to time, in strict accordance with its standards and specifications. Franchisees may not sell any services or products that the franchisor has not authorized and franchisees must discontinue offering any services or products that the franchisor may, in its sole discretion, disapprove in writing at any time.

Estimated Number of Units: 40

Investment Tables:
Initial Investment
Name of Fee Low High
Initial Franchise Fee $38,250 $42,500
Real Estate/Rent $16,290 $32,000
Utilities $2,392 $5,700
Leasehold Improvements $191,400 $467,040
Insurance $600 $1,200
Computer Hardware, Software, Office Equipment and Supplies $12,000 $16,500
Expenses during Initial Training $1,700 $6,000
Signage $3,800 $4,800
Furniture, Fixtures and Equipment $20,000 $22,000
Initial Inventory $4,200 $8,000
New Store Marketing (including New Store Local Marketing Fee) $10,000 $14,000
Site Evaluation $3,750 $3,750
Licenses and Permits $1,000 $12,179
Legal and Accounting $2,500 $3,500
Additional Funds - 3 months $30,000 $40,000
Estimated Total $337,882 $680,069
Other Fees
Type of Fee Amount
Royalty Fee 7% of Gross Sales.
Marketing Fund Contribution Currently, 1% of Gross Sales.
Advertising Cooperative Designated portion of Local Advertising or Marketing Fund Contribution.
Real Estate or Zoning Consulting Fee Currently $50-$100 per hour, plus our travel and living expenses.
On-Site Training Currently $400 per day, plus the franchisor’s expenses.
Additional Operational Assistance Fee Currently $400 per person, per day, plus the franchisor’s expenses.
Transfer Fee $7,500
Renewal Fee $5,000
Late Fees 18% per year or the highest rate allowed by law, whichever is less.
Approval of Products or Suppliers $200, plus all reasonable costs of evaluation.
Insurance Policies Amount of unpaid premiums, plus the franchisor’s reasonable expenses in obtaining the policies.
Audit Expenses All costs and expenses associated with audit.
Relocation Assistance Currently up to $400 per day, plus our expenses.
Customer Service All costs incurred in assisting the franchisee’s customers.
Custom Design Fee Reasonable fee currently, $75 per hour ,plus actual costs incurred).
Special Elective Marketing Fee Will vary.
Manual Replacement Fee $500
Cost of Enforcement All costs including attorneys’ fees.
Indemnification All costs including attorneys’ fees.

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

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