“There is nothing more rewarding than to see the positive impact you and your business have had on the relationship between customers and their pet companions, and the impact in your community.”
~ Wag N' Wash founders Jef Strauss and Dan Remus
Unsurprisingly, pet services is one of the fastest growing business sectors in America considering the millions of animals that have found their home in American households. Over time, pet ownership has grown to an estimated 71% of households in the United States, which equates to approximately 94 million homes.
Over 30 years ago (in 1994), the total amount of pet industry spending in the United States only totaled $17 billion. Now, the total is well over $150 billion annually. In 2024, the total amount of expenditures on pets in the United States reached $152 billion. Here’s a breakdown from the American Pet Products Association (APPA) of how that $152 billion was allocated:
- Pet Food & Treats: $65.8 billion
- Vet Care & Product Sales: $39.8 billion
- Supplies, Live Animals & OTC Medicine: $33.3 billion
- Other Services*: $13.0 billion
*Other services include boarding, grooming, insurance, training, pet sitting and walking and all additional services outside of veterinary care.
The Rise of “Pet Parents” and its Industry Impact
Anthropomorphism is the scientific term for giving animals more human characteristics. Consider how use of the phrases “pet parents” and “fur babies” has increased over the years vs. usage of the traditional phrase of “pet owners.” The increased humanization of pets, particularly dogs, has opened the pet services industry up to growth in nearly every direction imaginable.
Going further, a large factor in the uptick of pet pampering is Americans are by-and-large holding off marriage until later in life. According to researchers, those who are delaying marriage and childrearing until later in life are likelier than average to own a pet in a trial run for parenting. “That’s how millennials are approaching pet ownership,” says Nathan Richter, an analyst with Wakefield Research.
This change has been centuries in the making. As columnist Helaine Olen wrote in a Slate editorial, it helps to think of our pet/child obsession as a slow, 200-year upgrade in the status of the animals of our lives. The growing urban middle class of Victorian times, separating into nuclear families as they gained distance from rural life, slowly ceased viewing dogs primarily as working animals and began to, instead, see them as companions.
In fact, pet retailer Zulily released a study that found that rather than getting married or having kids, needing more space for their pets, dogs specifically, is the main reason cited by a third of millennials when purchasing their first home.
You’ve heard of parents or parents-to-be buying the best for their baby. Now, pet parents are also increasingly making similar choices so that the animal members of their families are just as pampered as the human ones.
Here are a couple of examples.
Pet Food Gets an Upgrade
One of the biggest areas impacted by the increase in pet pampering has been pet food.
Have you noticed the descriptors of “fresh,” “healthy,” “holistic,” or “gourmet” when looking at dog and cat food options? It closely mirrors food trends in human diets. That’s no coincidence.
“We know that pet parents are looking for the highest-quality, nutritious food they can find for their pet, but they also are attracted to the recipes that appeal to their own dietary preferences and taste buds,” said Jillian Smith, director of communications at Merrick, a leading pet food supplier. “When it comes to our recipe names, we take cues from well-known human foods because they’re relatable to the pet parent.”
And it’s not just dogs and cats, the evolution of pet food is making its way to other pets as well. According to Pet Age, pet parents of smaller animals and birds also are seeing an increase in options that are like human food products and made with “human-grade ingredients.”
Grooming Goes Beyond Getting Clean
Another area majorly influenced by more pet pampering is pet grooming, which isn’t just for cleanliness anymore.
Nowadays, pet grooming franchises can resemble animal spas, offering a range of pet pampering services. Some of these services include:
- Acupuncture
- Aromatherapy
- Deep conditioning
- Facials
- Massage
- Mud baths
- Non-heat drying cabanas instead of traditional blow-drying
- Pedicures aka “pawdicures”
Initial Investment and Opening Costs for Pet Services Franchises
The amount necessary to open a franchise varies depending on the unique business system and execution requirements for that particular franchise. The initial investment required for a pet services franchise can range widely, mostly dependent on if a real estate purchase will be needed.
In addition, another major source of variability across the overall initial investment range is for the mobile-based opportunities in the industry. For these franchise opportunities, you will need to factor in the lease or purchase of a reliable vehicle to your initial budget estimates, as well as what it will take to properly outfit that vehicle, if necessary.
Our franchise profiles will present you with a basic range for the initial investment or minimum cash required to open a franchise. But when it comes to finding out the details of an initial investment, the FDD is the best place to look. Franchisors offer itemized estimates in their FDD based upon their experience establishing, and in some cases operating, units.
Keep in mind these estimates are just that, though—an estimate. Prospective franchisees should review the figures presented with a business advisor, taking into consideration their unique circumstances, before making the decision to enter into a franchise agreement.
Ongoing Costs for Pet Services Franchises
Don’t forget about the additional costs required for nearly all franchise businesses. This includes expenses such as royalty fees, marketing fees, software fees, training fees, and more.
The most common is the royalty fee. Royalty fees are assessed for the continued use of the franchisor’s trademarks and patented processes, along with certain types of operational support. In addition to regularly assessed fees, other fees are charged on an “as needed” basis such as audit fees, or costs for additional, non-mandatory, training.
It’s important to note that while many initial and ongoing costs are detailed in the FDD, there are some costs inherent to business ownership, like employee wages or utility costs, that aren’t.