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Wag N’ Wash Franchise Cost & Fees

Date of Incorporation: 2005
Franchising Since: 2006
Headquarters: Colorado Springs, Colorado

Business Description: Healthy Pet Partners, LLC (HPP) is the franchisor. Wag N Wash (WNW) businesses provide self-service pet bathing, professional bathing services and the retail sale of pet supplies, pet accessories, pet bakery items, and pet deli items.

Franchise Offer: The franchisor offers franchises for the use of our “Wag N Wash” trademarks, trade names, service marks and logos for the operation of WNW Businesses.

Financial Assistance: Neither the franchisor, nor any agent of its, offers direct or indirect financing or guarantees franchisees’ note, lease or obligation.

Training and Assistance: No later than 2 weeks before the opening of the WNW Business, franchisees and up to 2 of their managers must attend and successfully complete a management training program, which is held at HPP headquarters in Colorado Springs, Colorado or any other location it may designate. The length of training shall be a minimum of 8 days at headquarters. In addition, the franchisor will train franchisees and their staff at their Center before their grand opening. The length of the training at their Center will be a minimum of 5 days. From time to time, the franchisor may require that franchisees, designated managers, and other employees attend system-wide refresher or additional training courses. The franchisor may hold periodic national or regional conferences to discuss business and operational issues affecting WNW franchisees. Also, HPP may hold a mandatory annual conference to discuss sales techniques, new service and product developments, training, bookkeeping, accounting, performance standards, advertising programs, merchandising procedures, and other topics.

Territory: Franchisees will be granted an exclusive territory in which to establish their WNW Business and sell the products and services. The franchisor will not establish another franchise or company or affiliate owned Center using the Marks within the Protected Territory. The franchisor will negotiate the specific size of the Protected Territory based upon the population density, and we will use commercially reasonable efforts to grant only one (1) license to a franchisee for every 100,000 people (or corresponding incremental portions) in a designated geographical area, but the actual size of the Protected Territory will depend upon the population density in your area. The Protected Territory may include less than 100,000 people if the WNW Business is located in an area with high non-residential traffic.

Term of Agreement and Renewal: The length of the initial franchise term is 10 years. If franchisees are in good standing and they meet other requirements, they may add one successor term of 10 years.

Obligations and Restrictions: The WNW Franchise shall be managed by the franchisee, or if an entity, by one of the owners who is a natural person with at least a 33% ownership interest and voting power in the entity. Franchisees are required to offer for sale only products and services that have been approved and specified by the franchisor in the Manual and any updates that are incorporated in the Manual from time to time.

Estimated Number of Units: 10

Investment Tables:
Initial Investment
Name of Fee Low High
Initial Franchise Fee $40,000 $40,000
Training Expenses $1,000 $3,000
Real Estate Leasing for 3 Months $14,000 $33,750
Leasehold Improvements $207,489 $271,080
Furniture, Fixtures and Equipment $50,000 $60,000
Signage $5,000 $15,000
Computer Hardware and Software $7,600 $7,600
Inventory and Supplies $30,000 $40,000
Utility Deposits $0 $1,000
Initial Advertising $3,000 $5,000
Insurance Premiums $1,500 $3,000
Licenses and Permits $250 $1,000
Professional Expenses $1,500 $3,000
Miscellaneous Opening Costs $3,000 $5,000
Additional Funds - 3 months $15,000 $30,000
Estimated Total $383,539 $522,630
Other Fees
Type of Fee Amount
Royalty fee 5% of Gross Revenue per month.
Brand Building Fund Contribution 1% of Gross Revenue per month.
Local and Regional Advertising Cooperatives Established by cooperative members.
Payment Services Fee Up to 4% of total charge.
Local Advertising Payment The difference between the amount the franchisee spent on local advertising each month and the required local advertising expenditure (minimum of 3% of your Gross Revenues).
Customer VIP Program Varies.
Initial Training for Additional People The current fee (currently $500 per person, plus the cost of travel, lodging, meals, and personal expenses).
Training for New managing Owner or Designated Manager $2,000 plus $400 per day for training at Franchisee’s Center.
Transfer Fee 50% of our then-current Initial Franchise Fee.
Customer VIP Program Varies.
Convention Fee Then-current fee (currently estimated to be $500-$2,500 per person).
Successor Franchise Fee 25% of our then-current Initial Franchise Fee.
Insurance Reimbursement of our costs plus a 20% administration charge.
Indemnification Varies under circumstances.
Professional Fees and Expenses Varies under circumstances.
Audit Expenses Cost of audit and inspection, any understated amounts, interest equal to the lesser of 1.5% per month or the highest rate allowed by law and any related accounting and legal expenses (the franchisor estimates this cost to be between $1,000 and $12,000)
Software License and Maintenance Fee $4,200
Customer Issue Resolution Reasonable costs the franchisor incurs for responding to a customer complaint, which varies.
Supplier and Product Evaluation Costs of inspection (estimated to be approximately $100 to $500)
Non-Sufficient Funds Fee $100 per occurrence.
Liquidated Damages Varies under circumstances.

The above information has been taken from the FDD of Wag N’ Wash. Year of FDD: 2015

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