Year Business Began: 1987
Franchising Since: 1991
Headquarters: Livonia, Michigan
Estimated Number of Units: 605
Franchise Description: PSP Franchising, LLC is the franchisor. The franchise offered is for the establishment and operation of retail stores offering pet food, pet supplies, pets, pet grooming and bathing services, and related products and services under the Pet Supplies Plus mark and system. Pet Supplies Plus stores offer a wide variety of pet food, pet supplies, pets (including small animals, birds, reptiles and fish, but not dogs or cats), pet grooming and bathing services, and related products and services in a clean, bright, retail environment.
Training Overview: Two trainees must attend (at the same time) and complete to the franchisor’s satisfaction the initial, tuition-free training program, which will be held at the franchisor’s corporate headquarters or any other location it may designate. Training lasts no less than 80 hours. Franchisees with no experience in retail or in the pet industry, may require up to 160 hours of training. If franchisees choose to enroll in optional training for pet grooming or other services, franchisees will be required to pay the then-current tuition fee.
Territory Granted: Franchisees will operate the store from a location that the franchisor must accept. After franchisees sign their Franchise Agreement and the franchisor subsequently agrees upon the approved location, the franchisor will grant franchisees an exclusive area within which it will not open another store under the marks and system (the territory), as identified in the Franchise Agreement. The size of the territory will depend on the number of people and the retail environment where the territory exists. While there is no minimum size for a territory, a territory generally consists of at least 60,000 people in more populous or more densely populated areas, and 30,000 people in less populous or less densely populated markets, and will be defined as either a radius around the approved location.
Obligations and Restrictions: Franchisees must devote their personal full-time attention and best efforts to the management and operation of the store, or they may delegate the day-to-day operation of their store to a manager. The store must, at all times, be staffed with at least one individual who has successfully completed the franchisor’s initial training program. Franchisees must offer and sell all of the products which the franchisor requires, and only the products which the franchisor authorizes for the system, in the manner it prescribes.
Term of Agreement and Renewal: The length of the initial franchise term is 10 years from the date the Franchise Agreement is signed. If requirements are met, franchisees can renew for two successive five-year periods.
Financial Assistance: The franchisor does not offer direct or indirect financing. The franchisor will not guarantee a franchisee’s note, lease or other obligation.
| Name of Fee | Low | High |
|---|---|---|
| Initial Franchise Fee | $49,900 | $49,900 |
| Inventory | $160,000 | $230,000 |
| Equipment | $126,700 | $275,800 |
| POS Equipment Installation | $3,150 | $4,150 |
| Full Store Preprinted Shelf Labels for Product | $120 | $150 |
| Training | $4,000 | $8,000 |
| Advertising Grand Opening | $20,000 | $30,000 |
| Insurance | $2,000 | $7,000 |
| Leasehold Improvements | $25,000 | $715,000 |
| Prepaid Rent/Security Deposits | $0 | $10,000 |
| Legal and Accounting | $4,000 | $10,000 |
| Pre-Opening Labor | $10,000 | $35,000 |
| Set Up Fee | $10,000 | $10,000 |
| Additional Funds - Initial Period (6 months) | $40,000 | $140,000 |
| ESTIMATED TOTAL | $454,870 | $1,524,200 |
| Type of Fee | Amount |
|---|---|
| Royalty | 2% of monthly gross sales for first 12 months of operation; 3% of monthly gross sales after first 12 months of operation. |
| Technology Fee | Estimated to be $800 - $1,200 per month, based on store build-out. |
| Point of Sale (POS) Leasing Payments | Estimated at $300 - $400 per month (based on capital costs of $17,250 - $22,000). |
| Grooming Scheduling Software | Currently $119 per month. Additional fees apply for text message reminders. |
| 3rd Party Courier Deliver from Store Fees | Varies by number of deliveries and distance from store. |
| Advertising | Currently 3.5% of Gross Sales (2/3 toward local spend as directed by the franchisor and 1/3 into the National Advertising Fund (NAF) with a maximum annual total contribution (local and NAF) of $100,000. |
| Late Fee and Insufficient Funds | The lesser of 1.5% per month or the highest permissible interest rate. |
| Audit Fee and Surcharge | 25% of the royalty on unreported gross sales plus the royalty and other required fees due, and applicable late fees. |
| Renewal Fee | $2,500 |
| Transfer Fee | $5,000 |
| Additional Training Fee | $300 per day. |
| Insurance | Cost of insurance; if franchisees fail to maintain insurance as required, the franchisor has the right to procure insurance on the franchisee’s behalf and charge an 18% administrative fee in addition to the cost of the insurance. |
| Supplier Network Re-Entry Fee | $500 |
| Penalty Fee | $500 |
| System Summit Meetings | Will vary under circumstances. Not to exceed $800 per person (up to two attendees per entity). Not to exceed $300 for each additional attendee (for 3 or more attendees from the same entity). Does not include actual out-of-pocket attendance costs. |
| Indemnification | Amount of claim or judgment. |
| Post-Termination and Post-Expiration Expenses | Costs and expenses associated with ceasing operations and de-identifying the franchisee from the store and the system. |
The above information has been compiled from the FDD of Pet Supplies Plus. Year of FDD: 2022.
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