MANY OPPORTUNITIES FOR ANIMAL LOVERS WITH PET FRIENDLY FRANCHISES
A lot of people across the country can relate to the need for pet care. A 20192020 survey conducted by the American Pet Products Association (APPA) showed that 67 percent of all US households have at least one pet, which is approximately 84.9 million homes. That figure has steadily increased since the APPA issued its first survey in 1988, which indicated 56 percent of US households owned a pet.
In addition to the growing number of pet owners, people are also spending more money on the dogs, cats, birds and fish in their homes. The APPA reported $95.7 billion spent on pets in 2019 with an estimated $99.0 billion to be spent in 2020. Pet care is big business and there are a lot of very profitable franchise opportunities in this industry.
When people first think of a pet franchise, they may associate it with an experience with their own pet. They may have recently picked up a chew toy or water bowl at Pet Supplies Plus or a bag of food at Wild Birds Unlimited. They could have also dropped off their pooch at boarding and daycare establishments such
as Camp BowWow or Dogtopia. These are all popular franchises that specialize in pet products or services.
There is a wide range of pet friendly franchises. Some are very large brick-andmortar establishments with hundreds of pet products and supplies or spacious boarding locations with a full staff to oversee the care and attention for a pet. Depending on the size and type of franchise, these can cost less than $100,000 or more than $1 million.
Conversely, there are many other homebased franchises such as pet-grooming businesses and dog-walking or dog
training services. These are servicebased businesses with little to no physical infrastructure and are very inexpensive. Some of those operations begin with one person performing the pet service before hiring others to do it as the business grows.
The amount of money spent on pets each year reflects the love and attention people give to them. A 2019 survey from SpotOn Virtual Smart Fence showed 98 percent of dog owners considered their dogs to be a member of the family. The humanization of pets is a major trend in which people buy them clothes, take them to daycare and treat them to gourmet meals. Owners are spending more money on their pets’ appearance, activities and medical care, and business owners are benefitting from it.
Having such a large, stable and even growing customer base is a tremendous benefit for a franchise owner of a pet friendly business. It falls under the attractive recession-resistant category, knowing there will always be a demand for its products and services. As so many businesses’ sales have struggled during the pandemic, the pet industry has largely operated without change as owners continue to provide for their furry friends.
Although that is a nice benefit, I don’t think that is a primary reason most people get into the pet business. In my experience as a franchise coach, the majority of people do it because they like pets, mostly dogs. Having a love for animals seems like a prerequisite for owning a pet franchise. The entire business will be centered around animals, and customers will expect the franchisee to reciprocate their knowledge, care and interest of their pets.
Just as there is a wide variety of pet friendly franchises, the skills a franchise owner must possess to operate a business vary greatly. Owning a pet supermarket requires several hats, such as managing staff and overseeing payroll and inventory. There will obviously be a completely different skill set for smaller, homebased businesses such as grooming or dog training. There is not one specific set of skills that fits all franchises in this industry. The common trait among nearly all franchisees in this sector comes back to a love of pets.
There are a lot of great benefits of owning a pet friendly franchise, from a having large, built-in customer base to working with pets each day. However, it doesn’t mean there aren’t some challenges that come along the way.
Many people are motivated to get into the pet business by their love of animals, which is often their own pet. Much like children, people love their own kids and their own pets. But what about other people’s pets? Franchise owners will need to love everyone’s animals, and that ranges for Shih Tzus to Great Danes to cats, ferrets and snakes. They must also be patient with aggressive or disobedient animals and be comfortable in carrying a lot of insurance.
Working around animals each day can be taxing on one’s senses. There will be a lot of smells, especially with a lot of cats and dogs in one place. There can also be a lot of noise, such as the constant barking at a doggy daycare or boarding facility. Pet care franchisees must be the people who hear these sounds more as music than noise.
While people are willing to spend freely on their pets, that places a great deal of responsibility on those in the pet care industry. Customers view them more as their own children than just pets. If they bring the dog to get trimmed or for daycare, they need to know their pet will be treated perfectly. Same for a store that makes a pet sick from the food you sold them. There are heightened expectations for the care their pets will receive, and owners take it very personally if something goes wrong.
Even with some of these challenges, the positive is that many people who look to get into the pet care business love animals and embrace all aspects of the operation. Those people have a lot of great franchise opportunities in a stable and profitable industry.
Rick Bisio is one of the countries most respected franchise coaches and author of the Amazon best seller, The Educated Franchise - 3rd Edition. Since becoming a franchise coach in 2002, Bisio has assisted thousands of aspiring entrepreneurs nationwide explore the dream of business ownership.
www.afranchisecoach.com/the-coach
When doing your research, don’t pigeonhole yourself to large national brands. Many small, emerging chains offer unique opportunities and great return on investment for franchisees, and there are some advantages to being an early adopter in a brand that you can’t find in a large, mature chain.
You have a chance to connect directly with the brand’s leadership Smaller franchisors have smaller corporate teams, which means it is easier to connect directly with the company’s top leadership. Often times, this even includes the brand’s founders, like in Rascal House’s case, who are connected to the history and values of the brand and are spearheading its growth with special care and tremendous passion. Huge chains also have layers of management and company politics that you can avoid with a smaller franchisor.
Choosing a franchise to invest in is similar to buying a house. It’s a long-term decision with big financial impact that you should research thoroughly.
You are less likely to be just another cog in the wheel with a smaller brand. When you are an early franchisee, you aren’t
one of dozens or more new franchisees that year; you are a foundational player. Because of this, it’s often easier to get more attention in a small franchise, so you can be as successful as possible as quickly as possible.
There is likely no market saturation yet Typically, smaller chains don’t have saturation in many—or any—markets, which means you can choose where you grow. This gives you the opportunity to build out as many locations as possible and own an entire market, which is often impossible in a well-established chain with hundreds or thousands of locations. For a multi-unit franchisee that is willing to be a pioneer, the opportunity to get exclusive rights to your first choice of a market is unique. Multi-concept franchisees who already have industry expertise, operational knowledge, a strong team in place and real estate connections in an existing market can capitalize on all of those things with an aggressive growth strategy.
While there is sometimes a slightly higher risk, the potential upside of developing an entire market is unmatched compared to a huge national chain that already has locations in every state and no attractive empty markets left. To mitigate the potential risk, look for a brand with longevity that is just starting to grow. Some emerging franchises, like Rascal House, are small in size but have decades of history showing success and proving the concept. This allows franchisees to be part of the brand’s early growth without worrying if the concept will survive long term.
You can lay your own foundation Buying a franchise is different than becoming an entrepreneur. There are systems to follow, and you should follow them because they are part of the value you get when investing in a franchise. That said, if you are more entrepreneurial in nature—or just interested in an option that is fresh and new—choosing an emerging brand gives you a greater ability to work with the founders and influence the direction of the brand.
You should always choose a franchise with strong foundational values—accepting every random idea a franchisee has is not the secret to success—but smaller chains will allow you to have a seat at the table and provide input from your outside expertise about how to strengthen the brand as it grows. In short, your voice is more likely to be heard and your input is more likely to be valued in an emerging concept.
Investing in a smaller franchise allows you to build your infrastructure knowing that your numbers should only improve. As a brand scales, new economies of scale will be created. Choose a brand that will pass those savings down to the operators and you’ll see increased profits as the franchisor grows. Before investing in a franchise, talk to franchisors about their core values to see if they are likely to take supplier rebates as franchisor profit or pass it down to their franchisees. Some brands are focused on franchisee success, so when buying power increases, they will lower the cost of goods for franchisees. Look for a brand that has low costs to start—you need to be profitable while the company is still growing—but know that with the right brand, those numbers should improve over time.
Big, national chains have grown to their size for a reason, and they have a lot of benefits to offer. That said, there are unique opportunities to grow with smaller chains. If you choose a small franchisor with strong core values and brand longevity, you can mitigate most of the potential risks and take advantage of the huge upsides of investing in an emerging franchise.
Niko Frangos is president of Clevelandbased Rascal House, a five-unit elevated quick-serve restaurant franchise serving pizza, burgers, wings and more.