Franchising Since: 2015
Headquarters: Cincinnati, Ohio
Estimated Number of Units: 160
Franchise Description: Pet Wants Franchise System, LLC is the franchisor. The franchisor offers Pet Wants store franchises to operate a business that offers pet food and supplies and pet grooming services under the business name “Pet Wants” and uses the franchisor’s other related trademarks and logos. Pet Wants franchises operate from a permanent retail location in addition to offering delivery and shipping services. Pet Wants franchisees may initially operate by providing only delivery and shipping services but must open a Pet Wants store within 12 months of opening for business.
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Territory Granted: The franchisor will grant franchisees an exclusive territory delineated by Postal Codes. A map of the territory that the franchisor approves of and a list of the Postal Codes comprising the territory will be attached to the Franchise Agreement. The Postal Codes that comprise the territory franchisees will receive for the base initial franchise fee will contain a population of up to 100,000 people. If the population within the Postal Codes exceeds 100,000 people, franchisees must pay an additional $500 for all or part of every 1,000 people over 100,000. There is no minimum population for the territory, but the franchisor recommends that it not be less than 75,000; there is no maximum limit on the population of the territory. Franchisees may not operate their franchise in another franchisee’s territory, except for shared referral sources, special accounts, and under other limited circumstances.
Obligations and Restrictions: Franchisees are required to form a limited liability business entity to operate the Pet Wants franchise and designate an individual to personally manage the franchised business on a full-time basis. The manager must be approved by the franchisor and must have successfully completed the training program. Franchisees may not use the premises on which the franchised business is located for any purpose other than the operation of the franchised business and the sale of authorized products and services (this restriction does not apply if franchisees operate the franchised business from a home office). Franchisees are required to offer and sell only those products and services that the franchisor has authorized.
Term of Agreement and Renewal: The length of the initial franchise term is 10 years. If franchisees satisfy the requirements for renewal, they have the right to extend the term of the franchise for an additional 10-year period after the initial term and the first renewal term.
Financial Assistance: The franchisor does not offer direct or indirect financing. The franchisor does not guarantee a franchisee’s note, lease, or obligation.
Estimated Initial Investment
Name of Fee | Low | High |
Initial Franchise Fee | $48,500 | $48,500 |
Real Estate | $3,200 | $8,000 |
Leasehold Improvements | $5,000 | $20,000 |
Signage | $3,000 | $10,000 |
Furniture, Fixtures, and Equipment | $32,000 | $50,000 |
Vehicle | $1,800 | $8,000 |
Initial Inventory | $15,000 | $25,000 |
Retail E-commerce and Website System | $1,500 | $3,000 |
Travel and Living Expenses while Training | $1,250 | $4,000 |
Initial Telephone, Bank and Other Deposits | $500 | $1,000 |
Pre-Opening Promotion | $10,000 | $10,000 |
Licenses | $100 | $500 |
Vehicle Wrap | $2,500 | $4,500 |
Retail E-commerce and Website System Setup | $1,500 | $1,500 |
Limited Liability Entity | $500 | $1,000 |
Insurance | $1,500 | $4,000 |
Additional Funds – 3 months | $10,000 | $20,000 |
ESTIMATED TOTAL | $137,850 | $219,000 |
Other Fees
Type of Fee | Amount |
Royalty | Greater of 7% of gross revenues or $350 monthly minimum for 12 months; $1,000 monthly minimum thereafter. |
National Branding Contribution | 2% of gross revenues; $250 monthly minimum for 12 months; $350 monthly minimum thereafter. |
Local Cooperative Advertising | Up to 3% of gross revenues unless a majority of the cooperative members agree on a higher contribution. |
Transfer Fee | Greater of $15,000 or 10% of purchase price, plus the franchisor’s legal and administrative costs. |
Lead Referral Fee | $10,000 |
Technology Fee | $50 monthly. |
Right of First Refusal Fee | $10,000 |
Local Advertising | The greater of 2% of gross revenues or $1,500. |
Late Fee | Greater of $100 or 10% of payment; $50 for ACH payments returned for insufficient funds; $100 and for late sales reports. |
Interest | 18% or the highest interest rate allowed by applicable law. |
Customer Refunds | Amount of expense advanced plus 18% interest or the highest interest rate allowed by applicable law. |
Audit Fee | Cost of audit plus 18% interest (or the highest interest rate allowed by applicable law) on underpayment. |
Territory Amendment Fee | $1,500 |
Sales/Use Taxes | Variable. |
Reimbursement | Amount of expense advanced plus 18% interest or the highest interest rate allowed by applicable law. |
Legal Expenses | Amount of expense advanced plus 18% interest or the highest interest rate allowed by applicable law. |
Trailer | $7,500 |
Indemnification | Amount of expense advanced plus 18% interest or the highest interest rate allowed by applicable law. |
Step-In Fees | $500 per day if incurred. |
Liquidated Damages | The average monthly royalty and branding fees from the prior 12 months. |
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