Pet boarding
Growth in field spurs The Ark to build franchise
The Ark Pet Spa and Hotel has seen double-digit percent sales growth every year since it began in 2006, according to the Chattanooga-based business.
Now, the venture with four locations is offering franchises in the Southeast, with its operators already fielding about 20 “feelers” within the first few days of doing so.
“We’ll show you how to be in it and make a very good living,” said Jay Floyd, founder and chief executive officer of The Ark.
Floyd said he’d been planning the franchise move for years. While there are three sites in Chattanooga, opening a facility in Doraville, Ga., outside Atlanta, pushed his team to learn how to help a location succeed outside of the Scenic City, he said.
“It was designed as a franchise vision. We didn’t know how long it would take,” Floyd said about The Ark, which offers such pet services as boarding, daycare, grooming and training as well as retail products.
The Ark estimates a startup investment of between $400,000 and $1 million. Floyd said the difference involves the size of facilities and doing a tenant build-out versus a new construction.
Properties are required to be from 6,000 square feet to 10,000 square feet. The Ark recommends 50 to 75 dog kennels and nine to 12 cat condos per location.
The Ark estimates average EBITDA, or earnings before interest, tax, depreciation and amortization as a measure of operating performance, of $224,295.
“It’s a positive cash flow business,” Floyd said.
He said it took The Ark’s franchise crew, working with National Franchise Associates out of the Atlanta area, about 12 months to create franchise documents and manuals.
Adam Harbin, The Ark’s vice president of development, said the business’ personnel know what the industry is like, as well as the competition on a national level.
“We’ve got a support system on the back end,” he said.
Harbin said there’s an initial fee of $35,000. Also, there a 7 percent royalty fee on gross sales, Floyd said.
He said The Ark will help in site selection, facility design, construction, crew and owner training, management, accounting, advertising and marketing.
The businessman, who moved to Chattanooga from Los Angeles about a decade-and-a half ago, was initially into real estate. But, he couldn’t find a place where he was satisfied about boarding a dog so he opened the first Ark Pet Spa & Hotel.
Then, Floyd said, the Great Recession hit in 2007 and he decided to make the move full-time into the business.
“Through the recession, The Ark continued to grow,” he said, noting that while many people cut back, they still spent money on their pets.
Floyd termed The Ark “one of those businesses which are enjoyable.”
“It’s a happy business,” he said.