Franchising Since: 1997
Headquarters: La Verne, California
Estimated Number of Units: 30
Franchise Description: Labrador Franchises Inc. (LFI) is the franchisor. The Pet Depot franchise is an owner-developed and operated pet care business, which offers pet food, pet supplies, pets for sale, veterinary services, grooming services, and other related services to the general public. The franchisor offers four franchise programs:
- Retail Pet Store/Pet Grooming Salon Program
- Animal Hospital Program
- Boutique Retail Pet Store Program
- Multi-Unit Development Program
Training Overview: Phase I training takes place at the franchisor's corporate headquarters located in Southern California and/or at an operating Pet Depot store that the franchisor designates and consists of approximately 40 hours. Phase II-III training takes place at designated on-site locations, and consists of approximately 45 - 91 hours. Initial training will be held at regional training locations, at company-operated stores, at approved Pet Depot franchised businesses owned by other franchisees and/or at the franchisee’s store or hospital. At a minimum, two supervisorial or managerial personnel from the franchisee’s company must successfully complete both Phase I through Phase III training to the franchisor’s satisfaction before opening the store or the franchisor can terminate the Franchise Agreement. The franchisor intends to periodically offer advanced refresher training programs and may require all certified managers or other personnel that it designates to attend specific training programs.
Territory Granted: Franchisees will not receive an exclusive territory. The franchisor may open another Pet Depot business wherever it chooses regardless of its proximity to the franchised location. Furthermore, the franchise rights granted to franchisees are non-exclusive and do not confer any preferential right to serve particular customers.
Obligations and Restrictions: The franchisor does not require franchisees, or their owner with a controlling interest, to personally devote full time and attention to managing and supervising all administrative and operational activities of the store and/or hospital, both in terms of managing development obligations and store operations. However, if franchisees choose not to assume these responsibilities, they must assign them to a supervisorial of managerial person who need not hold an equity interest in the franchise and who must successfully complete the initial training program and earn the designation of certified trainer. Franchisees must offer for sale and sell all of the products and services, and only those products and services that the franchisor approves or specifies for the Pet Depot system. Franchisees must maintain a minimum inventory of approved products in their store.
Term of Agreement and Renewal: The length of the initial franchise term is 10 years. Two successive renewal options of 10 years each are available, if requirements are met.
Financial Assistance: The franchisor does not offer direct or indirect financing. The franchisor does not guarantee a franchisee’s note, lease or obligation.
Investment Tables:
<small>The estimated initial investment range is for one retail pet store/pet grooming salon. Please see the Pet Depot FDD for the other options.</small>
| Name of Fee | Low | High |
|---|---|---|
| Initial Franchise Fee | $45,000 | $40,000 |
| Training | $0 | $1,000 |
| Real Estate Costs and Leasehold Improvements | $10,000 | $125,000 |
| Engineering Fees | $5,000 | $25,000 |
| Lease Review Fee | $0 | $2,500 |
| Furniture and Fixtures | $60,000 | $150,000 |
| Equipment | $25,000 | $75,000 |
| Signage | $8,000 | $20,000 |
| Computer System (Includes POS system and software) | $12,000 | $20,000 |
| Technology Training and Setup | $0 | $12,000 |
| Professional Fees | $4,000 | $8,000 |
| Security Deposits and Permits | $2,000 | $20,000 |
| Opening Inventory | $60,000 | $150,000 |
| Insurance | $3,000 | $6,000 |
| Uniforms (depending upon number of employees) | $1,000 | $2,000 |
| Travel, Lodging and Other Expenses Connected with Attending Initial Training Program | $3,000 | $10,000 |
| Grand Opening Advertising | $15,000 | $15,000 |
| Additional Funds - 3 months | $40,000 | $60,000 |
| ESTIMATED TOTAL* | $293,000 | $821,500 |
| Type of Fee | Amount |
|---|---|
| Royalty Fee of New Stores and Hospitals | 5% of gross sales. |
| Advertising Fee for New Stores and Hospitals | 2% of gross sales. |
| Gross-Up Fees | Varies with circumstances. |
| Late Fees | $200 plus interest of 1.5% on the amount outstanding per month, not to exceed the legal rate, which is currently 10% in California. |
| Renewal Fee | 25% off the then-current initial franchise fee. |
| Transfer Application Fee (Franchise Agreement) | The franchisor’s out of pocket costs associated with processing the application for the transfer. |
| Transfer Fee (Franchise Agreement) | The then-current initial franchise fee, plus the franchisor’s out of pocket costs associated with the transfer, including attorneys’ fees associated with the transfer. |
| Transfer Fee (Developer Agreement) | $5,000 |
| Remedial Training | Currently, $500 per person, per day. |
| Additional On-Site Assistance | Currently, $300 per person, per day. |
| Lost or Destroyed Operations Manual | $1,000 per copy. |
| Audit by the Franchisor | Costs of audit ($1,000 - $10,000), plus interest at the highest rate allowed by law, which is currently 10% in California (not to exceed 18%). |
| Reimbursement of Monies Paid by the Franchisor on The Franchisee’s Behalf | Varies with circumstances. |
| Costs and Attorneys’ Fees | Will vary under the circumstances. |
| Supplier Testing Fee | $500 - $2,500 |
| Interim Management Fee | Not to exceed $500 per day. |
| Indemnification | Will vary under circumstances. |
| Advanced and Refresher Training Courses | Currently, $150 per person, per day. |
| Repairs | Cost of labor and materials plus a 25% service charge plus reimbursement for the franchisor’s direct costs to supervise the work and other related expenses. |
| Private Offering Fee | $10,000 or such greater amount as is necessary to reimburse the franchisor for its reasonable costs and expenses with reviewing the proposed offering. |
| Relocation Assessment | An amount equal to the average royalty fees and advertising fees franchisees paid for their original franchised business during the last 2 calendar quarters plus an additional 10% or if franchisees have not been in operation for the past 2 calendar quarters, the average royalty and advertising fees during the time period that franchisees have been in business plus an additional 10%. |
| Insurance | Amount of unpaid premiums and the franchisor’s out of pocket costs, plus a 25% service charge. |
| Post-Termination Gross Sales Fee | 5% of all revenue derived from the operation of a competitive business. |
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