Franchising Since: 2009
Headquarters: Las Vegas, Nevada
Estimated Number of Units: 165
Franchise Description: Sit Means Sit Franchise, Inc. is the franchisor. The franchise offered is for the operation of a business offering dog training, behavior modification and consulting services to dog owners using the “Sit Means Sit” system and standards. Franchisees must purchase, lease, or own one or more trucks, sport-utility vehicles or other automobiles to sell and perform authorized products and services within their trade area. Franchisees may conduct training classes in public parks, gyms, pet stores, or other public locations. Or franchisees may operate from a formal training facility in which they have their own space to conduct dog training classes.
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Territory Granted: Franchisees will receive an exclusive territory (the “trade area”) in which to operate a single Sit Means Sit business. The trade area will be a specific geographic region mutually agreed upon by franchisees and the franchisor before they sign the Franchise Agreement. It will be described in the Franchise Agreement and may be defined by reference to streets, natural boundaries, ZIP codes, cities, counties, states, or other geographic markers as they exist on the effective date of the Franchise Agreement. Once established, the trade area may not be relocated. If a boundary of the trade area is defined by a street (including where a ZIP code boundary is defined by a street), the centerline of that street will serve as the boundary. The trade area will include a minimum estimated “dog population” of 50,000. The franchisor calculates dog population using U.S. Census data for humans, applying a formula found in the FDD. With limited exceptions, during the term of the Franchise Agreement, neither the franchisor nor its affiliates will operate or license others to operate a Sit Means Sit business or conduct dog training classes within the trade area.
Obligations and Restrictions: Franchisees are not obligated to participate personally in the business. However, franchisees must designate an individual acceptable to the franchisor who will be principally responsible for communicating with the franchisor about business, operational and other ongoing matters concerning the business. Franchisees may sell and offer only those products and services that the franchisor approves. Franchisees may not offer for sale any products or services not specifically approved by the franchisor in writing, and they may not use their business vehicle(s) or premises (if franchisees have a training facility) for any other purpose than the operation of a Sit Means Sit business and the sale of products or services approved by the franchisor.
Term of Agreement and Renewal: The length of the initial franchise term is 10 years from the effective date of the Franchise Agreement. If franchisees are in good standing, they can enter into one successor Franchise Agreement with a 10-year term.
Financial Assistance: The franchisor does not offer direct or indirect financing. The franchisor does not guarantee a franchisee’s note, lease or other obligations.
Estimated Initial Investment
Name of Fee | Low | High |
Initial Fee | $59,900 | $59,900 |
Real Property and Leasehold Improvements | $0 | $39,000 |
Equipment and Signs | $300 | $1,000 |
Sit Means Sit Vehicle(s) | $400 | $23,500 |
Computer Hardware and Software | $0 | $3,000 |
Initial Training Fee | $0 | $2,500 |
Wages, Travel and Living Expenses During Training | $2,620 | $6,680 |
Opening Inventory Collars | $630 | $1,570 |
Pre-opening Advertising (includes brochures, business cards, magnets) | $200 | $700 |
Insurance Deposits and Premiums | $150 | $3,300 |
Licenses and Permits | $25 | $700 |
Professional Fees | $0 | $3,000 |
Demonstration Dog | $50 | $7,500 |
Additional Funds – 3 months | $2,400 | $11,400 |
ESTIMATED TOTAL | $66,675 | $163,750 |
Other Fees
Type of Fee | Amount |
Continuing Royalty (for new franchisees) | The greater of 9% of gross sales or $800 per month. |
Franchise Financial Database | Cost of a monthly license for the program, currently $14.95/month. |
Background Checks | The franchisor’s costs to perform background checks, which are presently between $165 and $300 per background check. |
Initial Training Fee | After the first trainee, $2,500 per person for each person that attends the initial training program. |
Apprentice Program | $1,000 per person that attends the apprentice program. |
Optional Training Courses | As established by the franchisor. Fees will be uniform for all franchisees. Currently $150 per person per day. Franchisees must pay for their own travel, food, and incidental expenses. |
Further Individualized Training | As established by the franchisor. Fees will be uniform for all franchisees. Currently $150 per person per day. Franchisees must pay for their own travel, food, and incidental expenses. |
Continuing Education Fee | $150 - $350 |
Toll-Free Telephone Number Fee Charges | Franchisees must reimburse the franchisor for any telephone charges that it incurs to receive and forward to franchisees telephone calls that it receives at its toll free number. |
Supplier Approvals | The franchisor’s costs of inspecting the franchisee’s proposed supplier facility and/or product and equipment and all product testing costs paid by the franchisor to third parties (including travel expenses), which the franchisor estimates to be between $3,000 and $4,000. |
Transfer/Assignment | The greater of (i) the franchisor’s out of pocket expenses associated with evaluating and documenting the proposed assignment, (ii) $5,000, or (iii) 10% of the consideration paid for the business. |
Non-Compliance Assessment | $100 per occurrence, per week that the franchisee is not in compliance. |
Failure to Attend Re-Certification Training | $2,500 plus our reasonable attorneys’ fees. |
Late Fee | Interest of 10% per annum, or the highest interest rate allowable by law, whichever is less, on any unpaid amounts (with a minimum fee of $25). Interest begins from date of nonpayment or underpayment. |
Charges for Unpaid Checks, Drafts or Electronic Payments | The franchisor’s costs and expenses arising from the non-payment, including bank fees in the amount of at least $50 and other related fees incurred by the franchisor. |
Default Reimbursement and Legal Fees | Franchisees must reimburse the franchisor’s costs and expenses arising from the franchisee’s default under the License Agreement, including reasonable legal fees. The franchisor estimates that these fees will be between $500 and $100,000. |
Inspections | Franchisees must reimburse the franchisor for all of its costs and expenses (including travel expenses) incurred in connection with its inspection of the franchisee’s business location(s), which the franchisor estimates to be between $3,000 and $4,000. |
Indemnification | Will vary under circumstances. |
Under-Reporting of Gross Sales | Amount determined to be owed plus interest on the underpayment at the highest rate allowable by law (not to exceed 18%). |
Liquidated Damages | See FDD. |
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