The Dog Stop
The Dog Stop offers comprehensive dog care services including daycare, boarding, grooming, and training in indoor/outdoor facilities. Known for all-inclusive pet care solutions, it operates across multiple locations as both standalone businesses and area developer networks.
The Dog Stop franchise FAQ
How much does it cost to open one — the total initial investment?
The total initial investment to begin operation of a single TDS Business is between $493,850 and $1,373,500. This includes an Initial Franchise Fee of $60,000 [p.12] and other costs as specified in the excerpts.
What is the initial franchise fee?
The initial franchise fee is $60,000 for a single TDS Business, which is payable in a lump sum upon execution of the Franchise Agreement. This fee is nonrefundable and covers pre-opening assistance provided by the franchisor [p.12, p.98].
What are the ongoing royalty and advertising fees?
The ongoing royalty fee is six percent (6%) of gross sales, paid each week on Mondays for the previous week's sales [p.98]. For advertising, during the first year of operation, a franchisee must spend at least five percent (5%) of gross sales each quarter on local advertising, and after the first year, this amount decreases to three percent (3%) per quarter [p.114]. Additionally, there is a non-refundable contribution of two percent (2%) of gross sales paid weekly as part of the royalty fee [p.98, p.99].
How long is the initial franchise agreement, and can I renew it?
The duration of the initial franchise agreement isn't specified in the excerpts. Regarding renewal, if the franchisor declines renewal, it might still be required under certain laws, but the terms would follow either the current form of franchise agreement for new franchises or those indicated by the franchisor. The franchisor can also refuse renewal based on various conditions such as lease status and compliance with the agreement [p.126].
Can I sell or transfer my franchise, and what does that require?
According to the FDD, a franchisor can refuse to permit the transfer of ownership of a franchise except for good cause. Good cause includes but is not limited to unspecified factors [p.5]. This means you would need your franchisor's consent to sell or transfer your franchise, and they may have specific criteria or reasons for denying such a request [p.218].
On what grounds can the franchisor terminate the agreement?
The franchisor can terminate the agreement on any grounds available by law, as stated on [p.196]. However, under Virginia Retail Franchising Act (Section 13.1-564) and certain laws of Virginia, terminating a franchise without reasonable cause is unlawful, and provisions for termination must comply with these definitions to be enforceable ([p.198]).
What financial requirements — net worth and liquid capital — do I need to qualify?
This isn't specified in the excerpts.
Do I get an exclusive or protected territory?
You do not receive an exclusive territory. However, during the term of the Franchise Agreement, neither the franchisor nor its affiliates will operate or grant a franchise for the operation of TDS Businesses within your Development Area, except as specified under certain conditions [p.38]. Your protected territory may be described in Attachment C and is generally not to be infringed upon by other franchises or company-owned businesses during the term of the Agreement [p.94].
What training and ongoing support does the franchisor provide?
The franchisor provides an initial mandatory training course at no additional fee for you and a minimum of two managers. This training includes both on-site and remote components, lasting approximately ten days initially and up to five days at your business location before opening. Ongoing support may include additional training sessions if requested, though these would incur the current training fee. The franchisor also requires all upper management personnel to complete their initial training program to their satisfaction. Additionally, other employees must complete online training courses and pass corresponding exams prior to starting work [p.35, p.101].
How many franchised outlets are there, and how many have closed or been terminated?
This isn't specified in the excerpts.
Does the franchisor share any financial performance or earnings information?
The franchisor shares historical financial performance information for both affiliate and franchised locations based on unaudited profit and loss statements and reports submitted by franchisees. However, this information is not a projection of future performance and may differ for new outlets due to various factors [p.52, p.53]. The franchisor does not make any financial performance representations about future earnings or past performance of company-owned or franchised outlets, nor do they authorize such representations from their employees or representatives [p.53].
What am I restricted to selling, and where must I buy supplies?
You are required to offer all products and services mandated by the franchisor and cannot sell any unauthorized items. You must purchase or lease all necessary products, services, supplies, fixtures, equipment, inventory, computer hardware and software from approved suppliers, designees of the franchisor, or directly from the franchisor or its affiliates [p.24, p.43]. This includes maintaining sufficient inventory levels as specified in the Franchise Operations Manual [p.24].