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EarthWise Pet Supply Franchise Costs & Fees

Date of Incorporation: 2008
Franchising Since: 2008
Headquarters: Canby, Oregon

Business Description: NPM Franchising, LLC is the franchisor. The franchisor licenses its franchisees in specified territories to own and operate a franchise under the “Nature’s Pet Market” or “EarthWise Pet Supply” names and marks.

Franchise Offer: The franchisor offers franchises to qualified individuals to own and operate a franchise to offer pet foods and supplies and related services and products to the public.

Financial Assistance: Other than for instances where franchisees purchase multiple franchises simultaneously, the franchisor does not provide direct or indirect financing to franchisees or assist in providing financing for them. The franchisor does not guarantee any notes or financial obligations franchisees may incur in setting up and operating their franchise. For franchises purchased simultaneously via a Multiple Franchise Purchase Addendum, franchisees will pay the Initial Franchise Fees in accordance with one of the payment options described in the Franchise Disclosure Document.

Training and Assistance: At least 60 days before their planned store opening (and no later than 90 days after signing the Franchise Agreement), franchisees (and their manager, if applicable) must attend and complete the Initial Training Program to the franchisor’s satisfaction. At the franchisee’s option and upon not less than 35 days' prior written notice to the franchisor, franchisees or their managers may receive additional training at the franchisor’s training center or at other agreed upon locations. The franchisor has held and may in the future hold periodic franchisee retreats. The franchisor may deem it appropriate or necessary to provide additional training and supervision to franchisees and their managers at your franchise location. If so, franchisees will fully participate in and complete this additional training and supervision, including additional or revised training programs and processes that may be added to the Operations Manual in the future.

Territory: Franchisees will operate their Franchise from a location approved by the franchisor. The franchisor will not place or authorize anyone else to place an outlet (for either of its brands – currently Nature’s Pet Market or EarthWise Pet Supply) within a protected territory (the “Franchise Territory”). Ordinarily, the Franchise Territory will be based on a mileage radius from the Franchise Premises based on driving miles. The size of franchise territories typical ranges from 1/8 driving mile radius (for urban downtown locations) to a radius of 3 driving miles. However, franchise territories for franchisees may vary in size and dimensions based on population, growth trends, affluence of nearby population, topography, geography, density and demographics.

Term of Agreement and Renewal: The length of the initial franchise term is 10 years. If they are in good standing, franchisees may renew for periods of 10 years under the terms of the then current franchise agreement forms.

Obligations and Restrictions: The franchisor requires that franchisees, or one of their owners if a company or partnership, participate in the actual day-to-day operation of the franchise business. If franchisees hire a store manager, they must still supervise the franchise and visit the Franchise Premises as required in the Operations Manual. The franchisor requires that franchisees use, offer and sell only those products, goods and services that the franchisor approves in writing or are allowed within the parameters of the Product Quality Guidelines that may be contained within the Operations Manual (or otherwise in writing). Franchisees must offer all products, goods and services that the franchisor designates as required by its franchisees.

Estimated Number of Units: 40

Investment Tables:
Initial Investment
Name of Fee Low High
Initial Franchise Fee $39,950 $39,950
Training Fee $17,500 $17,500
Utilities Deposits and Payments $1,000 $3,000
Furnishings, Fixtures and Equipment $20,000 $60,000
Computer Hardware and Other Software $3,900 $7,500
Security System $500 $3,000
Tenant Improvements $30,000 $125,000
Signage $5,000 $20,000
Franchise Premises Rent (deposit and 3 months) $15,000 $30,000
Inventory $35,000 $70,000
Travel and Living Expenses While Training $500 $7,500
Insurance (first three months) $2,000 $3,500
Grand Opening Advertising $7,500 $25,000
Additional Funds (first 3 months) $12,000 $20,000
ESTIMATED TOTAL $211,00 $476,000
Other Fees
Type of Fee Amount
Royalty 6% of the Gross Weekly Revenue for the preceding week./td>
Weekly Marketing Contribution 1% of the Gross Weekly Revenue for the preceding week.
Fee for Unsatisfied Automatic Withdrawal $75 for each unsatisfied attempt.
Regional Marketing Program Amount not to exceed 1 percent of the Gross Revenue.
Late Payments The greater of $50 or 5% of the amount due; plus 1.5 percent of amount due per month as a late payment penalty.
Audit Cost of audit (currently estimated at $1,000 to $5,000) plus late payment charges on underpayment.
Additional Training and Assistance Currently the lesser of $100 per hour per trainer or $600 per day.
Franchise Retreats Franchisees will be required to pay their expenses as well as their employees' expenses in attending these programs.
Independent Laboratory Testing Costs Actual cost of tests (unknown at this time).
Transfer Fee $15,000
Renewal Fee Reimbursement of the franchisor’s out-of-pocket costs (currently estimated at $0 to $2,500)
Fee for Retraining Upon Renewal Reimbursement of the franchisor’s out-of-pocket costs. Currently estimated at $0 to $8,500 (plus the franchisee’s expenses).
Refurbishing Upon Renewal The franchisee’s costs.
Assistance in Site Location Reimbursement of the franchisor’s out-of-pocket costs (if applicable).

The above information has been taken from the FDD of EarthWise Pet Supply. Year of FDD: 2016

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