Wag N Wash Franchise

$49,900.00

Popular

Pet Care

Year Business Began: 2005

Franchising Since: 2006

Headquarters: Livonia, Michigan

Estimated Number of Units: 15

Franchise Description: WNW Franchising, LLC is the franchisor. The franchise offered is for the establishment, development, and operation of retail businesses that provide self-service pet bathing, professional pet grooming, and retail sale of select pet supplies, pet accessories, pet bakery, and pet food items in a small format store environment under the “Wag N Wash” mark and system.

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 a location that the franchisor designates. 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. Additionally, if franchisees choose to enroll in optional training for pet grooming or other services through the Paragon School of Pet Grooming, they will be required to pay the then-current tuition fee. The franchisor will train any additional or replacement personnel, at the franchisee’s request, subject to the availability of training personnel at any location the franchisor may select.

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 franchisor will not locate another store operating under the marks and system physically within the territory, whether company-owned, affiliate-owned, or otherwise. The size of the territory will depend on the number of people where the territory exists. While there is no minimum size for a territory, a territory generally consists of approximately 60,000 people in more populous or more densely populated areas, and approximately 30,000 people in less populous or less densely populated markets, and will generally be defined as a radius around the approved location.

Obligations and Restrictions: Franchisees must devote your personal full-time attention and best efforts to the management and operation of the Store, or you may delegate the day-to-day operation of your Store to a “key manager.” The key manager must successfully complete the initial training program before assuming any managerial responsibility. The store must, at all times, be staffed with at least one individual who has successfully completed the initial training program. Franchisees must offer and sell all of the products which the franchisor requires, and only the products which it authorizes for the system, in the manner it prescribes. Franchisees may not use nor sell pet food, pet supplies, pets, fixtures, furnishings, signs, or equipment which do not meet the franchisor’s standards and specifications, unless approved in writing.

Term of Agreement and Renewal: The length of the initial franchise term is 10 years. Two successive five-year renewals are available, if requirements are met.

Financial Assistance: The franchisor does not offer direct or indirect financing. The franchisor will not guarantee a franchisee’s note, lease or other obligations.

Investment Tables:

Estimated Initial Investment
Name of Fee	Low	High
Initial Franchise Fee	$49,900	$49,900
Inventory	$80,000	$140,000
Equipment	$26,000	$101,000
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	$20,000
Insurance	$2,000	$7,000
Leasehold Improvements	$50,000	$435,000
Prepaid Rent/ Security Deposit	$0	$15,000
Legal & Accounting	$1,500	$5,000
Pre-Opening Labor	$10,000	$10,000
Additional Funds – Initial Period (6 months)	$40,000	$130,000
ESTIMATED TOTAL	$296,670	$960,200

Other Fees
Type of Fee	Amount
Royalty	3% of monthly Gross sales for first 12 months of operation; 4% of monthly gross sales after first 12 months of operation.
Technology Fee	Estimated to be $800 per month based on store build out.
Point of Sale (POS) Leasing Payments	Estimated at $400 - $600 per month.
Grooming Scheduling Software	Currently $1,428 per year charged at $119 per month. Additional fees apply for text message reminders sent to pet parents and will vary by number of texts sent.
3rd Party Courier Deliver from Store Fees	Varies by number of deliveries and distance from store.
Advertising	3% of gross sales (2/3 toward local spend as directed by WNW and 1/3 into the National Advertising Fund (NAF) with a maximum annual total contribution (local and NAF) of $100,000. Because the media buy is typically for several months, the monthly percent of sales requirement will be calculated based on the trailing three months prior to each quarter.
Late Fee and Insufficient Funds	The lesser of 1.5% per month or the highest permissible interest rate.
Audit Fee & 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 from the store and the system.