About Dogdrop Franchise
Dogdrop is a modern pet services franchise offering dog daycare alongside retail sales of dog related products and supplies.
The brand provides a safe, engaging environment for dogs while giving pet owners convenient access to premium products.
The franchise fee is $50,000, and the company has been franchising since 2021 under DogDrop, Inc.
Dogdrop Franchise Cost & Fees
Minimum Investment
$308K
Average Investment
$453K
Maximum Investment
$597K
| Fee Type | Amount | Notes |
|---|---|---|
| Initial Franchise Fee | $50,000 | One-time payment upon signing |
| Royalty Fee | 7% of Gross Sales of gross sales | Ongoing; paid monthly |
| Marketing/Ad Fund | Up to 3% of Gross Sales (Currently 2% of Gross Sales) for Brand Development Fund Contribution and the greater of (i) 2% of Gross Sales, or (ii) $2,000 per month for Local Marketing | National brand fund |
| Total Investment Range | $308,000 – $597,360 | Includes build-out, inventory, working capital |
The investment range of $308K–$597K reflects variability in build-out costs, store size, lease terms, and market. The combined royalty (7% of Gross Sales) and marketing fee (Up to 3% of Gross Sales (Currently 2% of Gross Sales) for Brand Development Fund Contribution and the greater of (i) 2% of Gross Sales, or (ii) $2,000 per month for Local Marketing) are ongoing costs paid as a percentage of gross sales.
Investment Breakdown (Item 7)
| Item | Low | High |
|---|---|---|
| Initial Franchise Fee | $50,000 | $50,000 |
| Your Training Expenses | $5,000 | $10,000 |
| Third Party Training Expense | $225 | $360 |
| Lease deposit | $6,050 | $20,000 |
| Utility Deposit | $0 | $600 |
| Rent | $18,050 | $33,750 |
| Utilities | $900 | $1,800 |
| Millwork & Fixtures | $27,000 | $55,000 |
| Leasehold Improvements, Construction and/or Remodeling | $100,000 | $280,000 |
| Architect/Design Fees | $10,000 | $15,000 |
| Appliances | $3,000 | $6,000 |
| Signage | $5,000 | $16,000 |
| Business Licenses and Permits | $750 | $1,000 |
| Technology Purchases | $4,000 | $5,500 |
| Proprietary Software License Fee | $1,500 | $1,500 |
| Internet Service (3 Months) | $375 | $450 |
| Proprietary Software Fee (3 Months) | $450 | $450 |
| Third-Party Software Fees | $900 | $1,200 |
| Initial Inventory | $3,000 | $3,000 |
| Professional Fees | $3,000 | $10,000 |
| Association Membership Fees | $300 | $750 |
| Initial Launch Marketing & Promotions | $20,000 | $20,000 |
| Insurance | $3,500 | $5,000 |
| Additional Funds / working Capital – 3 months | $45,000 | $60,000 |
Additional Fees (Item 6)
| Fee Type | Amount |
|---|---|
| Transfer Fee | For transfers to: (i) an entity or individual that is new to the System, 75% of the then-current Initial Franchise Fee; (ii) an entity or individual that is already an existing owner in the System, 50% of the then-current Initial Franchise Fee; and (iii) an entity owned and controlled by the franchisee for convenience purposes without changing the majority ownership in the franchisee entity, $1,500 |
| Renewal Fee | 25% of the then-current Initial Franchise Fee |
| Technology Fee | Up to $400 per month (Currently $200 per month) |
| Audit Fee | Actual costs (Audit and Quality Assurance Fees); Cost of the examination, plus related expenses (Examination of Books and Records) |
| Initial Training (additional personnel) | $200 per person per day |
| Remedial Training | $350 per trainer per day, plus travel and other expenses |
| Additional Training | $500 per person |
| Relocation Fee | 25% of the then-current Initial Franchise Fee |
| Proprietary Software Fee | Up to $500 per month (Currently $150 per month) |
| Product or Supplier Review | $1,000 per review |
| Late Payment Fee | $100 |
| Interest | 1.5% per month or the highest legal rate, whichever is less |
| Insufficient Funds | $100 |
| Insurance Reimbursement | Amount paid by us for your insurance obligations, plus an additional ten percent (10%) administrative fee |
| Interim Management Fee | 10% of net sales during the period of our on-site management, plus travel and other expenses |
| Taxes Reimbursement | Reimbursement of our costs |
| Indemnification | Amount of loss or damages, plus costs and expenses |
| Reimbursement of Legal Fees and Expenses | Our costs and expenses, including but not limited to attorneys’ fees |
| Liquidated Damages | Royalty Fees for balance of Term |
| Post-Termination or Post-Expiration Expenses | Costs and expenses |
| Non-Compliance Fee | Up to $500 per failure to comply |
| Communication Center Fees | Currently not assessed. As determined by the service provider and/or us. |
Training Program (Item 11)
| Detail | Information |
|---|---|
| Total Duration | 48 hours |
| Classroom Training | 32 hours |
| On-the-Job Training | 16 hours |
| Training Location | Los Angeles, CA (headquarters and/or affiliated owned or franchised outlet, or virtually) |
| Additional Training | Mandatory or optional additional training programs, including an annual business meeting or franchisee conference for up to five (5) days or less per year. Fee is currently $500 per person. Remedial on-site training available at franchisee's expense ($350 per trainer per day plus expenses). |
Territory Rights (Item 12)
| Detail | Information |
|---|---|
| Territory Type | Protected |
| Exclusive Territory | No |
| Territory Size | All or a portion of a listed town, city, or county, identified by a radius, group of contiguous zip codes, political boundaries, natural boundaries, competition, and other factors. |
| Description | Your Territory is located in all or a portion of a listed town, city, or county, and is identified by a radius, group of contiguous zip codes political boundaries, natural boundaries, competition and other factors that we deem pertinent. The Territory is based on various demographic data as we determine, in our discretion, which may include minimum numbers of households, average home prices and household incomes. Your Territory will be defined and attached to your Franchise Agreement as Attachment 2. |
Renewal, Termination & Transfer (Item 17)
| Detail | Information |
|---|---|
| Initial Term | 10 years |
| Renewal Term | 10 years each |
| Renewal Fee | $2,500 |
| Renewal Conditions | Be in full compliance, have no more than three (3) events of default during current term, provide written notice to us at least six months before the end of the term, execute a new franchise agreement, pay Successor Agreement Fee, continue to have the right to occupy the premises or have received approval to relocate, remodel your Franchised Business location, execute a general release, comply with then-current qualifications and training requirements, including completion of additional training. |
| Transfer Fee | For transfers to: (i) an entity or individual that is new to the System, 75% of the then-current Initial Franchise Fee; (ii) an entity or individual that is already an existing owner in the System, 50% of the then-current Initial Franchise Fee; and (iii) an entity owned and controlled by the franchisee for convenience purposes without changing the majority ownership in the franchisee entity, $1,500. |
| Transfer Conditions | Franchisor approval (not unreasonably withheld), transferee meets current standards, transferee signs new franchise agreement, transferee and General Manager successfully complete initial training, all amounts owed paid, franchisee and transferee sign general release, franchisee subordinates claims against transferee, franchisee indemnifies franchisor for 3 years, franchisor approves material terms, landlord’s consent of a lease assignment (if applicable), payment of a transfer fee. |
| Termination for Cause | Franchisor may terminate if franchisee defaults. Curable defaults (e.g., non-payment) have 5 days to cure. Non-curable defaults include insolvency, bankruptcy, falsifying reports, ceasing operations for 5+ days, losing possession of premises, failure to restore business, non-compliance with laws, default under lease, understatement of Gross Sales (2+ times), insurance/indemnification failure, unauthorized transfer, failure to transfer upon death/disability, misrepresentation in application, felony conviction, adverse judgment for fraud/racketeering, concealing revenues, public health/safety threat, refusal of inspection/audit, unauthorized use of IP/Confidential Information, non-compliance with non-compete, 3+ defaults during term or 2+ default notices in 12 months, insufficient funds (3+ times in 12 months), default under other agreements, animal abuse, or termination without cause. |
| Non-Compete Period | During the term of the franchise; 24 months after termination or expiration. |
| Non-Compete Details | During the term: Franchisee may not divert customers to competitors, participate in any competing business, or perform acts injurious to goodwill. Post-termination: Franchisee may not divert customers to competitors, participate in any competing business within 20 miles of former Dogdrop outlet location or any other Dogdrop outlet location, or perform acts injurious to goodwill. |
Operations & Supply (Items 8 & 15)
| Detail | Information |
|---|---|
| Owner-Operator Required | No |
| Participation Details | The Franchise Agreement does not require that you personally supervise the day-to-day operations of your Dogdrop outlet. If you are a business entity, you must designate and retain (subject to our approval) at all times an individual to serve as the “Operating Principal” who will be primarily responsible for your Franchised Business and exercise decision making authority on behalf of the Franchised Business. Your Operating Principal is required to have at least ten percent (10%) equity interest in the franchisee entity. If you are an individual, you must perform all obligations of the Operating Principal. You may appoint a “General Manager” to oversee the day-to-day operations of your Dogdrop outlet, but you must remain active in overseeing the Franchised Business. |
| Required Suppliers | Yes, for equipment, fixtures, furnishings, uniforms, marketing materials, supplies, services, computer systems, and certain software. Also approved commercial real estate brokers, lease negotiation firms, and architects. Franchisor is the only approved supplier for proprietary software. |
| Supply Restrictions | Franchisees must purchase all specified items from designated/approved suppliers or in accordance with franchisor specifications. An approval process for new items/suppliers exists, requiring a $1,000 evaluation fee and samples. Franchisor reserves the right to revoke approval. |
| Franchisor Revenue from Suppliers | Franchisor may derive revenue from franchisee purchases from designated or approved suppliers. In the fiscal year ending December 31, 2020, no revenue, rebates, discounts, or other material consideration was received from suppliers, but this may change in the future, and any such benefits may be kept by the franchisor. |
Financing (Item 10)
| Detail | Information |
|---|---|
| Financing Available | No |
| Description | We do not offer direct or indirect financing. We do not guarantee any note, lease, or obligation on your behalf. |
Dogdrop Franchise Earnings — Item 19
Dogdrop does not make an Item 19 financial performance representation in their FDD. This means they do not disclose revenue, profit, or earnings data for franchised locations. Before investing, ask the franchisor directly for franchisee contact information so you can speak with existing owners about their actual financial performance.
Dogdrop does not include an Item 19 financial performance representation in their FDD. Contact information for current and former franchisees is listed in Item 20 of the FDD.
Dogdrop Litigation & Risk Flags
Clean Litigation RecordDogdrop has no pending litigation actions listed in their FDD. There is also no bankruptcy history disclosed.
Litigation and bankruptcy data is sourced from Items 3 and 4 of the FDD. Always verify current status directly from the most recent FDD.
Dogdrop System Growth
Total Units
1
Franchised
0
Company-Owned
1
Dogdrop currently operates 0 franchised locations and 1 company-owned units. Unit count data is sourced from Item 20 of the FDD.
Unit History (Item 20)
| Year | Opened | Closed | Total |
|---|---|---|---|
| 2020 | 0 | 0 | 1 |
| 2021 | 0 | 0 | 1 |
| 2022 | 0 | 0 | 1 |
Transfers: 0 | Closures: 0
State Registrations
Registered in 16 states: CA, CT, HI, IL, IN, MD, MI, MN, NY, ND, OR, RI, SD, VA, WA, WI
Franchisor Financials (Item 21)
0
Net Income
$-128,071
Total Assets
$73K
Audited by Independent Auditor (St. George, Utah) for year ending December 31.
Dogdrop Franchise — FAQ
The total investment to open a Dogdrop franchise ranges from $308,000 to $597,360, per their Franchise Disclosure Document. This includes the initial franchise fee of $50,000. The investment covers build-out, inventory, equipment, signage, working capital, and other startup costs.
Dogdrop charges a royalty fee of 7% of Gross Sales of gross sales, plus a Up to 3% of Gross Sales (Currently 2% of Gross Sales) for Brand Development Fund Contribution and the greater of (i) 2% of Gross Sales, or (ii) $2,000 per month for Local Marketing contribution to the marketing/advertising fund. These fees are paid on an ongoing basis.
You can download the Dogdrop Franchise Disclosure Document free on this page. The FDD is a public document filed with state franchise registries. Always also request the current FDD directly from Dogdrop to ensure you have the most up-to-date version.
Dogdrop does not provide an Item 19 financial performance representation in their FDD, which means they do not disclose franchisee revenue or earnings data. Prospective investors should contact existing franchisees directly (listed in Item 20 of the FDD) to gather real-world financial performance information.
Dogdrop has been franchising since 2021. The FDD shows an investment range of $308,000-$597,360, a 7% of Gross Sales royalty, and no Item 19 earnings disclosure. There is no pending litigation. Review the full FDD and contact current franchisees listed in Item 20 before making any investment decision.
The franchise fee is $50,000 and the total investment ranges from $308,000 to $597,360 depending on location size and market. A minimum of $45,000 in liquid capital is required. Contact the franchisor directly for current net worth and liquid capital requirements, territory availability, and application details.
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Data Source & Disclaimer: This website is for informational purposes only. It is not an offer to sell or buy a franchise. This profile is based on publicly available FDD data sourced from state franchise registry filings. All information is for research purposes only and does not constitute legal, financial, or investment advice. Data may be outdated or contain errors. Always obtain the current FDD directly from Dogdrop and consult a qualified franchise attorney before making any investment decision. FranchiseOverview.com is operated by Franchising Compliance, LLC and is not affiliated with Dogdrop or any of its subsidiaries. To report an inaccuracy: info@franchiseoverview.com