Petland Franchise Costs, Fees & FDD

Year Business Began: 1967

Franchising Since: 1972

Headquarters: Chillicothe, Ohio

Estimated Number of Units: 320

Franchise Description: Petland Inc. is the franchisor. The franchisor operates and licenses franchisees to operate pet stores under either the brand name “Petland” or “Safari Stan's Pet Center” in a particular location. The franchisor has also licensed franchisees to operate aquarium stores called “Aquarium Adventure.” Petland franchisees operate a retail pet store offering to the general public a variety of pets, pet supplies, and pet-related items. Petland stores are generally located in outdoor shopping centers, although some Petland stores are located in enclosed malls and freestanding locations.
Training Overview: The franchisor provides an initial training program for all franchisees. At least one person must attend the initial training program; however, franchisees may have as many additional officers or employees attend the initial training program as they wish. If franchisees are establishing a new store or purchasing an existing store, the franchisor provides a management training program which includes approximately 39.5 hours of classroom work, a hands-on training program which includes approximately 16 hours of classroom work and 23.5 hours of hands on demonstration and role play at a location to be determined by the franchisor. In addition, franchisees must attend on the job training which consists of up to 77 hours of hands on, in store training at a store designated by the franchisor. If the franchisor, in its sole discretion, determines that a longer period of on-the-job training is required, it may direct the franchisee to do so. In that event, the franchisee will spend up to an additional two weeks in on-the-job training. The franchisor currently provides additional periodic training sessions and seminars. Generally, franchisees are able to attend on a voluntary basis, but they are required to attend at least one training session every year.

Territory Granted: Each Petland franchisee can operate a Petland store and use the system and the licensed marks at their franchised location. In addition, so long as franchisees are not in default under the Franchise Agreement or of any other agreement between them and the franchisor, the franchisor will not operate or grant a franchise to any other party to operate a Petland store within their territory as defined. The territory is generally determined by taking into account demographic factors, competition and other stores in the area, and may have an approximate population of 25,000 persons although some territories may have more or less. Neither the franchisee nor other franchisees are prohibited or restricted from soliciting sales or accepting orders from customers residing outside of their territory.

Obligations and Restrictions: As a matter of the franchisor’s practice, franchisees must participate personally in the direct operation of the franchised Petland store business to the extent necessary to ensure full compliance with the Franchise Agreement and to ensure that the business achieves the maximum sales possible. Franchisees must equip and supply the store only with items supplied either by the franchisor or suppliers approved by the franchisor, and throughout the term of the Franchise Agreement. Franchisees must maintain an inventory in the store approved by the franchisor. The franchisor has the right to enter the store at any time during store hours to inspect the operations and facilities for the purpose of determining compliance with its standards.

Term of Agreement and Renewal: The length of the initial franchise term is 20 years from the date the store initially opens for business. Upon meeting certain conditions, franchisees can renew for one additional 20-year term.

Financial Assistance: Financing arrangements are generally the franchisee’s responsibility, although the franchisor may assist franchisees with the development of the business plan, the store development budget, and the loan request which is submitted to third party lenders. The franchisor does not receive direct or indirect payments for the placement of financing of franchisee obligations with any lender, but reserves the right to do so in the future. The franchisor may, but is not required to, guarantee a franchisee’s obligations to third parties.

Estimated Initial Investment

Name of Fee	Low	High
Initial Franchise Fee	$50,000	$50,000
Area Development Fee	Varies
Real Property	Varies
Furniture, Fixtures, Equipment and P.O.S. System	$60,000	$350,000
Remodeling, Lease­hold Improvements and Decorating Costs	$15,000	$250,000
Inventory Required to Begin Operation	$75,000	$200,000
Utility Security Deposits	$0	$6,000
Lease Deposit	$0	$20,000
Advertising Associated with Store Opening	$5,000	$20,000
General Liability, Casualty and Other Insurance as Required	$8,000	$18,000
Additional Funds – 1 to 3 months	$45,000	$100,000
Travel, Room and Board to Attend Initial Training Program per person (depending on distance to Ohio)	$2,000	$5,000
Construction Plans and Specifications	$15,000	$15,000
Site Work, Fixture Coordination and Construction Services Fee	$12,500	$12,500
Store Merchandising and Set Up Assistance Fee (Initial Merchandise Planograms, Merchandising and P.O.S. Setup, and Detail Bar Coding)	$10,000	$10,000
On-Site Training Team and Grand Opening Assistance	$12,500	$12,500
Licenses And Fees	$500	$2,000
Uniforms	$1,000	$2,000
Professional Fees	$1,500	$5,000
ESTIMATED TOTAL (excluding real estate)	$313,000	$1,078,000

Other Fees

Type of Fee	Amount
Royalty	4.5% of total gross revenues for the first and second franchised stores.
Late Fee	10% on amounts past due.
Interest	1.5% per month on amounts past due.
Local Advertising	5% of gross revenues per month.
National Advertising Fund Contribution	Up to 2% (currently 0.5%) of gross revenues.
Additional Training Fee	Currently there is no fee, but the franchisor reserves the right to charge a fee, not to exceed $1,500 per day.
Transfer Fee	1/2 of the then-current franchise fee for a new franchise store.
Audit Fee	Actual cost of audit, plus late payment fee.
Renewal Fee	None.
Delinquent Report Fee	$25 per day for each day a report is past due, plus all of the franchisor’s expenses if it must hire accountants to prepare the reports.
Accounting Fee	$450 per month.
Point of Sale System – User Maintenance Fee	$129 per month.
Insurance	Cost of insurance. If the franchisee fails to insure, cost of insurance plus $10 administration fee per day.
Ongoing Purchases from Petland	Invoiced amount from the franchisor for goods purchased.
Attorney’s Fees and Costs	Varies.
Reimbursement of Expenses to Resolve Customer Complaint	Actual amount of the franchisor’s expenses.
Indemnification	Varies.

The above information has been compiled from the FDD of Petland. Year of FDD: 2025.
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