Pet Supplies Plus Franchise Cost & Fees
Date of Incorporation: 1987
Franchising Since: 1991
Headquarters: Livonia, Michigan
Business Description: PSP Franchising, LLC is the franchisor. Pet Supplies Plus Stores offer a wide variety of pet food, pet supplies, pets (including small animals, birds, reptiles and fish, but not dogs or cats), pet grooming and bathing services, and related products and services in a clean, bright, retail environment.
Franchise Offer: The franchise offered is for the establishment and operation of retail stores offering pet food, pet supplies, pets, pet grooming and bathing services, and related products and services under the Pet Supplies Plus mark and system.
Financial Assistance: The franchisor does not offer direct or indirect financing. The franchisor will not guarantee a franchisee’s note, lease or other obligation.
Training and Assistance: Up to two trainees must attend and complete to the franchisor’s satisfaction our initial, tuition-free training program, which will be held at the franchisor’s corporate headquarters or any other location it may designate. Training lasts at least 80 hours, which may not be consecutive. To assist franchisees in operating their store, the franchisor may offer additional management and employee training programs, which it estimates will cost $1,000 to $1,500 a year.
Territory: The size of the territory will depend on the number of people and the retail environment where the territory exists. While there is no minimum size for a territory, a territory generally consists of at least 60,000 people in urban/suburban areas and 30,000 people in rural markets, and will be defined as either a radius around the approved location or via street boundaries. However, if the franchisee purchases a small store located in a sparsely populated rural area, the size of the territory may include fewer than 30,000 people.
Term of Agreement and Renewal: The length of the initial franchise term is 10 years from the date the Franchise Agreement is signed. If requirements are met, the franchisee can renew 2 successive 5-year renewals.
Obligations and Restrictions: Franchisees must devote their personal full-time attention and best efforts to the management and operation of the store, or they may delegate the day-to-day operation of their store to a manager. Franchisees must offer and sell all of the products which the franchisor requires, and only the products which the franchisor authorizes for the system, in the manner it prescribes.
Estimated Number of Units: 330
|Name of Fee||Low||High|
|Initial Franchise Fee||$49,900||$49,900|
|Advertising Grand Opening||$30,000||$30,000|
|Prepaid Rent/Security Deposits||$0||$18,000|
|Legal and Accounting||$5,000||$7,500|
|Additional Funds - first 6 months||$100,000||$125,000|
|Type of Fee||Amount|
|Royalty||2% of monthly Gross Sales for first 12 months of operation; 3% of monthly Gross sales after first 12 months of operation.|
|Technology Fee||Currently $300 per month, estimated to increase to $1,000 per month in early 2016.|
|Advertising||Currently $3,000 per month, $1,000 of which goes to the National Advertising Fund.|
|Late Fee and Insufficient Funds||The lesser of 1.5% per month or the highest permissible interest rate.|
|Audit Fee and Surcharge||25% of the royalty on unreported Gross Sales plus the royalty and other required fees due, and applicable late fees.|
|Additional Training Fee||$500 per day.|
|Insurance||Cost of insurance; if franchisees fail to maintain insurance as required, the franchisor has the right to procure insurance on the franchisee’s behalf and charge an 18% administrative fee in addition to the cost of the insurance.|
|Supplier Network Re-Entry Fee||$500|
|Indemnification||Amount of claim or judgment.|
|Post-Termination and Post-Expiration Expenses||Costs and expenses associated with ceasing operations and de-identifying the franchisee from the Store and the System.|
The above information has been taken from the FDD of Pet Supplies Plus. Year of FDD: 2015
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