Pet Supplies Plus Franchise Is Costly But PAYBACK’S FAST (2022)



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.

This video was based on an exclusive Vetted Biz analysis, click here for the full report:
https://www.vettedbiz.com/pet-supplies-plus-franchise/

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00:00 Introduction
00:29 About Pet Supplies Plus Products
00:40 Franchise Group Incorporated
00:53 Pet Supplies Plus Contenders
01:11 Initial Investment Cost
01:42 Cash on Cash Return
02:04 Franchise Royalties & Fees
02:26 Pet Supplies Plus EBITDA
02:49 Pet Supplies Plus Locations
03:16 Selling a Pet Supplies Plus Franchise
03:46 Return on Investment
04:08 Conclusion

#PetSuppliesPlusFranchise #VettedBiz

Three of the biggest contenders in this market are Aussie Pet Mobile Inc., Camp Bow Wow, and Best Friends Pet Care Inc, but none of them own more than 5% of the market share, resulting in a highly fragmented market. The industry brings in $8.4billion in revenue annually, with profits of $952 million. It is expected to have an annual growth rate of 2.7% between 2022 and 2027. It also competes in the pet supplies market against big brand companies such as Walmart, Home Depot, etc.

The Initial Franchise Fee is $49,900. You have to pay this upfront fee when opening the franchise.

The estimated total investment necessary to begin the operation of a Pet Supplies Plus Franchise ranges from $454,870 to $1,524,200. The following costs are part of the upfront costs included in the initial investment. Many of these are one-time fees that are needed to launch the franchise. Review the chart below to see how much it costs to buy a Pet Supplies Plus franchise in (year)

The standard investment in the industry is $271,000 which puts Pet Supplies Plus at a very high startup cost.

Royalty: 2% of Gross sales for the first year. 3% after that

Marketing Fee: 3.5% of Gross sales

POS leasing fee: $300 – $400 per month

Technology Fee: $800 – $1,200 monthly

The royalty fee is half of the Pet Care industry standard and the marketing fee is comparable.

Based on the average sales provided by Pet Supplies Plus’s franchise locations, at an average of a 10% profit margin it will take around 5 years to recoup your investment. This is longer than other franchise opportunities. You may not get a 10% profit margin which would elongate getting a return on your investment.

Many factors affect the sales, costs, and expenses of your Franchised Store. Such as the Franchised Store’s size, geographic location, menu mix, and competition in the marketplace. The presence of other Pet stores and the quality of management and service at your Franchised Store are also factors.

To assign a valuation multiple for Pet Supplies Plus franchises, we leverage estimates from DealStats, a database of acquired private company transactions sourced from U.S. business brokers and SEC filings. We reviewed the larger franchise industry as well as selling price multiples for pet retail businesses where more transaction data is available.

Under $1 Million Net Sales
Estimated Selling Price = Net Sales * 0.55
$1 Million – $5 Million Net Sales
Estimated Selling Price = Net Sales * 0.90
When you go to sell a Pet Supplies Plus franchise in year 5, based on the median multiple of .90 and net sales averaging between 2020 and 2021 of $2,765,127, it would sell for about $2.5 million. This is significantly higher than the midpoint investment of $989,535. On a well-executed store, you could expect a 2-3X return on your franchise investment.

Pet Supplies Plus is a very profitable business for the franchisor with retained earnings of $12.1 million in 2021. Compared to $5.66 million in 2019, they saw an increase of almost 200% from 2019 to 2021. This is a good indication of high growth as a company overall.

Over the last three years, the company has been rapidly expanding. Both franchising units and company-operated stores have increased. Over the last three years, franchises have opened at an average rate of about 47 stores a year which is one almost every week. This is a sign that the business is doing well.

This video was based on an exclusive Vetted Biz analysis, click here for the full report:
https://www.vettedbiz.com/pet-supplies-plus-franchise/

Want to have a franchise specialist support you day-to-day in your franchise search/ analysis? Click here for more information:
https://www.vettedbiz.com/franchise-search/

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