Hounds Town USA Franchise Costs, Fees & FDD

Year Business Began: 2001

Franchising Since: 2015

Headquarters: Orlando, Florida

Estimated Number of Units: 75

Franchise Description: The franchisor is Hounds Town USA, LLC. Hounds Town USA businesses operate interactive dog care facilities offering daycare services, dog boarding services, grooming, and other related services and products.
Training Overview: Before franchisees open their Hounds Town USA business, franchisees (or their managing owner, if they are an entity) and their designated manager must attend and successfully complete to the franchisor’s satisfaction the initial training program and the immersion training program. The franchisor reserves the right to vary the length and content of the initial training program based upon the experience and skill level of the individual attending the initial training program. Franchisees must also obtain any necessary state-required certifications for franchisees and their employees. In addition, the franchisor will provide up to 20 hours of virtual training approximately three to four weeks prior to the projected opening date to familiarize franchisees with the tools they will use to train their Hounds Town team. The franchisor will also provide up to 60 hours of on-site grand opening training beginning two days before and ending five to seven days after the Hounds Town USA Business opens to the public. Between one and six months after the opening of the Hounds Town USA Business, the franchisor will provide up to 8 hours of on-site Phase 2 Training. From time to time, the franchisor may require that franchisees, managers and other employees attend system-wide refresher or additional training courses. Some of these courses may be optional, while others may be required. The franchisor may present national, regional or local seminars, conventions or continuing development programs for the benefit of its franchisees. The franchisee’s attendance at most of these seminars is voluntary. However, franchisees (or their managing owner, if they are an entity) or their designated manager must attend any mandatory seminar, convention, or program the franchisor may offer.

Territory Granted: Franchisees will receive an exclusive territory after they select and the franchisor approves a suitable site. During the term of the Franchise Agreement, neither the franchisor nor any affiliate will establish a company-owned or franchised Hounds Town USA business selling the same or similar products or services under the same or similar trademarks or service marks within the territory. The territory will generally comprise an area that includes a population of approximately 100,000 people and/or a drive time around the location of 12 minutes. Drive times may vary depending on density and/or the urbanization around the location. The population statistics used in determining the territory will be based on numbers derived from the current United States Census report and supplemented with other information available and other population statistical sources of the franchisor’s choosing to determine populations. In certain densely populated metropolitan areas, a territory may be smaller, while Hounds Town USA franchisees operating in less densely populated urban areas may have significantly larger areas.

Obligations and Restrictions: The Hounds Town USA franchise shall be managed by franchisees or, if they are an entity, by one of the owners who is a natural person with at least a 25% ownership interest and voting power in the entity. Under certain circumstances, the franchisor may allow franchisees to appoint a designated manager to run the day-to-day operations of the Hounds Town USA franchise. Franchisees must sell or offer for sale only those services and products authorized by the franchisor and which meet its standards and specifications. Franchisees must follow the franchisor’s policies, procedures, methods, and techniques. Franchisees must sell or offer for sale all types of services and products specified by the franchisor.

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 enter into two successor terms of 10 years.

Financial Assistance: The franchisor does not offer direct or indirect financing to franchisees. The franchisor does not guarantee a franchisee’s note, lease, or other obligation. Active-duty military and honorably discharged veterans of the United States armed forces receive a 10% discount on the initial franchise fee for the first Hounds Town USA business.

Estimated Initial Investment

Name of Fee	Low	High
Initial Franchise Fee	$49,000	$49,000
Launch Fee	$30,000	$30,000
Pre-Opening Marketing Package	$15,000	$15,000
Annual Reunion Fee	$1,500	$1,500
Microsite and Social Media Setup	$300	$300
Financial Training Access	$300	$300
Travel Expenses Related to Training	$3,000	$10,000
Pre-Opening Lease Payments	$0	$50,000
Furniture, Fixtures and Equipment	$30,500	$50,000
Leasehold Improvements	$258,265	$880,961
Architect Fees	$6,500	$15,000
Site Survey	$1,500	$1,500
Concept Design	$2,500	$2,500
Security and Utility Deposits	$7,000	$10,000
Opening Inventory	$500	$2,000
Post-Opening Marketing	$15,000	$25,000
Business Licenses & Permits	$200	$2,500
Logo Gear and Uniforms	$1,000	$3,000
Signage	$3,000	$12,000
Insurance	$2,100	$4,000
Computer Hardware	$2,500	$3,000
POS Setup Fee	$299	$299
POS Fee - 3 months	$930	$930
Pre-Opening Technology Fees	$1,206	$2,424
Closed Circuit Camera Systems	$10,000	$20,000
Professional Fees	$2,500	$6,000
Vehicle Lease, Signage, Insurance	$0	$5,000
Bookkeeping Services	$900	$900
Additional Funds – 3 Months	$30,375	$75,375
ESTIMATED TOTAL	$475,875	$1,278,489

 
Other Fees

Type of Fee	Amount
Royalty	6% of gross sales.
Brand Fund Contribution	2% of gross sales.
Local Advertising Requirement	The difference between the amount franchisees spent on local advertising each month and their required local advertising expenditure, which is based on number of months they have operated.
Advertising Cooperatives	Established by cooperative members, between 1% and 2% of gross sales.
Unauthorized Advertising Fee	$500 per occurrence.
Additional Training or Assistance Fees	Then-current fee (currently $1,500 per additional person for initial training and approximately $750 per attendee per day for additional training).
Additional Opening Assistance	$500 per day, plus travel and lodging expenses.
Technology Fee	Varies based on number of users and license type (currently $95 to $333 per month).
Local Advertising Management Fee	Varies (currently $125 per month).
Annual Reunion Fee	Then-current fee (currently $125 per month plus remaining balance).
Customer Resolution Fee	Varies; reasonable costs the franchisor incurs for responding to a customer complaint, which typically will be between $20 and $100.
Supplier and Product Evaluation Fee	Costs of inspection (estimated to be approximately $100 to $500).
Payment Service Fee	Up to 4% of total charge.
Late Payment Fee	$100 per occurrence, plus the lesser of the daily equivalent of 12% per year simple interest or the highest rate allowed by law.
Insufficient Funds Fee	The greater of $100 per occurrence, or the highest amount allowed by law.
Failure to Submit Required Report Fee	$100 per occurrence and $100 per week.
Audit Expenses	Cost of audit and inspection, any understated amounts, and any related accounting and legal fees and expenses.
Indemnification	Will vary under circumstances.
Management Fee	Commercially reasonable amount – currently $750 per day, plus costs and expenses.
Professional Fees and Expenses	Will vary under circumstances.
Insurance	Reimbursement of the franchisor’s costs, plus a $2,500 administration charge.
Relocation Fee	The franchisor’s costs.
Transfer Fee	50% of the then-current initial franchise fee, plus the costs of training.
Successor Franchise Fee	50% of the then-current initial franchise fee.
Successor Launch Fee	Reimbursement of our actual costs incurred in providing renovation and updating support, if required at renewal, plus 10% of costs as an administration charge, up to a maximum of $30,000.
Liquidated Damages	Will vary under circumstances.
Broker Fees	The franchisor’s actual cost of the brokerage commissions, finder’s fees, or similar charges.
Multi-Franchise Development Agreement Extension Fee	$1,000 per extension.

The above information has been compiled from the FDD of Hounds Town USA. Year of FDD: 2025.
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