About Dogtopia Franchise
Dogtopia is a premier dog daycare franchise that also offers boarding, grooming, and spa services for dogs.
The brand has been franchising since 2005 under Dogtopia Enterprises, LLC, and has grown to become one of the largest and most recognized names in the pet care franchise industry with locations across the United States and Canada.
The franchise fee is $49,500.
Dogtopia Franchise Cost & Fees
| Fee Type | Amount | Notes |
|---|---|---|
| Initial Franchise Fee | $49,500 | One-time payment upon signing |
| Royalty Fee | 7% of weekly Gross Sales of gross sales | Ongoing; paid monthly |
| Marketing/Ad Fund | 2% of weekly Gross Sales (may increase to 3% of weekly Gross Sales) | National brand fund |
| Total Investment Range | $688,312 – $1,806,803 | Includes build-out, inventory, working capital |
The investment range of $688K–$1.8M reflects variability in build-out costs, store size, lease terms, and market. The combined royalty (7% of weekly Gross Sales) and marketing fee (2% of weekly Gross Sales (may increase to 3% of weekly Gross Sales)) are ongoing costs paid as a percentage of gross sales.
Investment Breakdown (Item 7)
| Item | Low | High |
|---|---|---|
| Initial Franchise Fee | $40,095 | $49,500 |
| Initial Training Fee | $0 | $2,000 |
| Food, Lodging & Travel (3 to 4 people while training) | $1,000 | $12,000 |
| Utility & Security Deposits | $5,500 | $17,500 |
| Real Estate and Facility Coordination Fee | $35,000 | $44,500 |
| 3 Month’s Rent (3 Months after Opening) | $17,400 | $45,600 |
| Leasehold Improvements | $409,792 | $1,169,923 |
| Furniture, Furnishings & Equipment | $29,500 | $87,000 |
| Exterior Signage & Graphics | $10,000 | $45,000 |
| Interior Signage & Graphics | $15,000 | $35,000 |
| Microsite & Social Media Account Set Up Fee | $500 | $500 |
| Technology Systems | $8,550 | $27,600 |
| Technology Fees (pre-opening period) | $875 | $2,580 |
| Scent Air System | $500 | $2,000 |
| Initial Supply of Inventory and Operating Supplies | $7,900 | $10,600 |
| Grand Opening Marketing | $15,000 | $30,000 |
| Business Licenses and Permits | $2,000 | $44,000 |
| Insurance (3-months’ premium) | $1,200 | $3,000 |
| Professional Fees | $28,500 | $78,500 |
| Additional Funds (3 months after opening) | $60,000 | $100,000 |
Additional Fees (Item 6)
| Fee Type | Amount |
|---|---|
| Transfer Fee | 50% of then-current initial franchise fee |
| Renewal Fee | 50% of then-current initial franchise fee |
| Technology Fee | Varies (currently $125 to $215 per month depending on selected technology package) |
| Audit Fee | Actual cost of audit (including travel and lodging expenses for audit team) |
| Cooperative Advertising Fee | Up to 2% of weekly Gross Sales (not currently imposed) |
| Digital Marketing Fee | Varies (currently $175 per month) |
| Training Fee [Initial Training After Opening] | $2,000 per person |
| Training Fee [Ongoing Training] | Up to $400 per person per day (plus reimbursement of expenses for onsite training) |
| Conference Registration Fee | Up to $389 for first attendee and $299 for each additional attendee |
| Relocation Fee | $15,500 to $44,500 |
| Expansion Fee | $7,500 |
| Development Deadline Extension Fee (ADA Only) | $10,000 |
| Reimbursement of Reinspection Costs | All costs we incur to travel to and inspect your Center |
| Reimbursement of Insurance Costs | Amount of expenses we incur, including premiums |
| Late Fee | Lesser of 18% of amount past due or highest rate allowed by applicable law |
| Fines | Up to $500 per incident |
| Management Fee | Commercially reasonable rate |
| Indemnification | Amount of our damages, losses or expenses |
| Attorneys’ Fees and Costs | Amount of attorney’s fees and costs we incur |
| Liquidated Damages | Varies (See Note 9 for calculation) |
Training Program (Item 11)
| Detail | Information |
|---|---|
| Total Duration | The initial training program consists of a 1-day virtual Orientation and 4 phases of training, totaling 20 days of in-person training (5 days per phase) plus online self-study. |
| Classroom Training | 105.5 hours |
| On-the-Job Training | 80 hours |
| Training Location | Phoenix, Arizona (corporate headquarters) and a Dogtopia training facility (currently Scottsdale, Arizona). Some orientation and online training are conducted virtually. |
| Additional Training | Yes. The franchisor may require managing owners and management personnel to attend periodic refresher or additional training courses, including remedial training for operational deficiencies. Franchisees may also request additional training. Fees apply for additional attendees or remedial/requested training (up to $2,000 per person for initial training, up to $400 per person per day for ongoing/remedial training). |
Territory Rights (Item 12)
| Detail | Information |
|---|---|
| Territory Type | Protected |
| Exclusive Territory | No |
| Territory Size | Determined by the number of 'Core Profile Individuals'. If fewer than 50,000 within a 3-mile radius, the territory is a 3-mile radius. If more than 50,000, the territory is a geographic area designated by the franchisor including a minimum of 50,000 Core Profile Individuals, defined by radius (less than 3 miles), area codes, municipal boundaries, streets, or polygons. |
| Description | Franchisees receive a protected geographic area surrounding their approved site. The franchisor will not develop or operate, or grant a franchise to a third party to operate, a Dogtopia Center within the franchisee's Territory during the term, except for Captive Venues, Acquisitions, or potential subdivision of the Territory. The franchisor reserves the right to subdivide a Territory if it contains 65,000 or more Core Profile Individuals and can support additional centers, offering the franchisee a first option to acquire development rights to the new 'Option Territory'. |
Renewal, Termination & Transfer (Item 17)
| Detail | Information |
|---|---|
| Initial Term | 10 years |
| Renewal Term | 10 years |
| Renewal Fee | 50% of then-current initial franchise fee |
| Renewal Conditions | Must not be in default, give timely notice (180-365 days before expiration), substantially comply with agreements, sign then-current franchise agreement and ancillary documents, sign general release, pay renewal fee, remodel/upgrade to current standards, complete refresher training (if required), and maintain possession of facility under lease. |
| Transfer Fee | 50% of then-current initial franchise fee |
| Transfer Conditions | Proposed transferee must meet qualifications, complete training, obtain licenses/permits, assume contracts/obligations. Transferor must submit application, be in compliance, assign lease (if applicable), remodel/upgrade (or transferee commits), pay transfer fee, sign general release, subordination agreement, and termination agreement (if new FA signed). Franchisor has right of first refusal. |
| Termination for Cause | Franchisor can terminate with 5 days' notice without cure for reasons like insolvency/bankruptcy, seizure of assets, failure to complete training, failure to find approved site/construct/open timely, abandonment, regulatory license suspension/revocation, breach of third-party agreements, conviction of certain crimes, acts adversely affecting brand reputation, health/safety hazards, material misrepresentation, second failure to honor System Account terms, failure to pay within 10 days of demand, second underreporting by 3%, three or more failures to submit reports in 12 months, unauthorized transfers/IP use, breach of brand protection covenants/Franchise Owner Agreement, failure to meet minimum performance, lease termination due to default, two or more default notices in 12 months (even if cured), three or more default notices in 18 months (even if cured), or termination of other agreements due to default (except ADA for development schedule failure). For other defaults, 30 days' written notice with opportunity to cure. |
| Non-Compete Period | 2 years |
| Non-Compete Details | During the term, franchisees and owners cannot have an interest in a Competitive Business (except <5% in publicly traded company), divert business, induce customer transfers, or misuse supplier relationships. After term, for 2 years, cannot engage in Prohibited Activities within the Restricted Territory (Territory + 15-mile radius of other Dogtopia Centers). If a court finds 2 years too long, it defaults to 1 year. If 15 miles is too broad, it defaults to 10 miles, then 5 miles, then just the Territory. |
Operations & Supply (Items 8 & 15)
| Detail | Information |
|---|---|
| Owner-Operator Required | Yes |
| Participation Details | A 'Managing Owner' must be designated, approved by the franchisor, successfully complete training, have authority to bind the franchisee, and hold at least a 5% ownership interest (unless waived). A 'Designated Manager' must provide daily on-site management and supervision for a minimum of 40 hours per week (50 weeks per year), be approved by the franchisor, complete training, and sign a Brand Protection Agreement. Either the Managing Owner or a Designated Manager must be present during normal business hours. |
| Required Suppliers | Yes. Franchisees must purchase or lease certain 'source restricted' goods and services from approved or designated suppliers, which may include the franchisor or its affiliates. Items include the lease for the facility, real estate, design and construction services, construction materials (e.g., rubber flooring, HVAC), furniture, fixtures and equipment, signage, Technology Systems, operating supplies, inventory, marketing materials and services, and insurance policies. Uniform shirts and certain branded inventory items must be purchased through Dogtopia Marketplace. |
| Supply Restrictions | Franchisees must purchase or lease certain goods and services that meet the franchisor's specifications and/or are from approved or designated suppliers. The franchisor maintains a confidential Brand Standards Manual with specifications and supplier lists. For non-approved suppliers, franchisees must submit a written request for approval, including samples for testing and facility inspection. The franchisor has 60 days to approve or disapprove. Approximately 60% to 80% of initial purchases and 20% to 35% of ongoing operating expenses are source restricted. |
| Franchisor Revenue from Suppliers | The franchisor and its parent company receive rebates from certain suppliers, ranging from 0.5% to 10% of the cost of the item. The Real Estate Company pays a rebate of 0.5% of commissionable payments (after a $300,000 threshold in the first year). The franchisor is the exclusive supplier for Consultation Services, certain digital marketing services, Project Manager services, employee shirts, and certain inventory items through Dogtopia Marketplace, charging a markup of 0% to 18%. In fiscal year 2021, the franchisor received $2,836 (0.03% of total revenues) from franchisee purchases from designated/approved suppliers, and its parent company, Dogtopia Enterprises, LLC, received $422,212. |
Financing (Item 10)
| Detail | Information |
|---|---|
| Financing Available | No |
| Description | The franchisor does not offer direct or indirect financing and does not guarantee any notes, leases, or obligations. Lenders providing financing to franchisees may occasionally pay the franchisor a fee (1% of the loan amount), which is contributed to the Dogtopia Foundation, a 501(c)(3) charitable organization. This has occurred only twice to date. |
Dogtopia Franchise Earnings — Item 19
Past financial performance does not guarantee future results. Individual results will vary.
Dogtopia Litigation & Risk Flags
Litigation and bankruptcy data is sourced from Items 3 and 4 of the FDD. Always verify current status directly from the most recent FDD.
Dogtopia System Growth
Dogtopia currently operates 143 franchised locations and 23 company-owned units. Unit count data is sourced from Item 20 of the FDD.
Unit History (Item 20)
| Year | Opened | Closed | Total |
|---|---|---|---|
| 2019 | 40 | 2 | 112 |
| 2020 | 25 | 1 | 136 |
| 2021 | 33 | 3 | 166 |
Transfers: 3 | Closures: 3
State Registrations
Registered in 14 states: CA, HI, IL, IN, MD, MI, MN, NY, ND, RI, SD, VA, WA, WI
Franchisor Financials (Item 21)
Dogtopia Franchise — FAQ
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