Risk Score
Pending analysis
Investment Range
$360,800 - $650,160
Franchise Fee
$12,000
Min Cash Required
$45,000
Total US Locations
3
Business Summary
Dogdrop operates businesses that provide daycare services for dogs and sell dog-related products and supplies. The business uses specific operating procedures, designs, and brand standards for its outlets, which are typically located in high-traffic commercial areas such as central city, suburban strip centers, or high-rise buildings.
Corporate History
Dogdrop Franchise Group, LLC was formed as a limited liability company in California on October 9, 2020. Its parent company, DogDrop, Inc., a Delaware corporation, was formed on December 15, 2019. Dogdrop began offering franchises in May 2021. The company has been operating Dogdrop outlets through affiliates since 2019.
Financial Overview
Investment Range
$360,800 - $650,160
Franchise Fee (Low)
$12,000
Franchise Fee (High)
$12,000
Minimum Cash Required
$45,000
Royalty %
2%
Marketing %
3%
Equipment Costs (Low)
$179,000
Equipment Costs (High)
$402,500
Working Capital
$52,500
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
Dogdrop's financial condition, as shown in its financial statements, raises questions about its ability to provide services and support to franchisees. The company has consistently reported net losses and a members' deficit for 2022, 2023, and 2024. As of December 31, 2024, Dogdrop had only $10 in cash and a members' deficit of $116,562, alongside current liabilities including $25,572 due to affiliates and $91,000 in deferred revenue. The company has relied on member contributions and loans from affiliates to fund operations, which may indicate a reliance on future franchise fees.
Financing Details
Dogdrop does not offer any direct or indirect financing to its franchisees. Additionally, Dogdrop does not guarantee any notes, leases, or other obligations on behalf of franchisees. Franchisees are responsible for arranging their own funding through external sources.
Performance Metrics
Total US Locations
3
Franchised Units
0
Corporate Units
3
Avg Square Footage
2,400
Franchising Since
2021
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Summary
Dogdrop has no litigation cases to report in Item 3 of its Franchise Disclosure Document. This means Dogdrop or its key management have not been involved in any material litigation proceedings that are required to be disclosed.
Bankruptcy History
Dogdrop has no bankruptcy information to report in Item 4 of its Franchise Disclosure Document.
Agreement Terms
Initial Term
10 years
Renewal Term
10 years
Renewal Conditions
To renew their franchise agreement, Dogdrop franchisees must meet several conditions. These include being in full compliance with the agreement, having no more than three instances of default during the current term (regardless of whether they were cured), providing written notice six months before the term ends, signing a new franchise agreement, and paying a Successor Agreement Fee of $2,500. Franchisees must also continue to have the right to occupy their current premises or have approval to relocate, remodel their business to meet current standards, and execute a general release of claims against Dogdrop and its affiliates. Additionally, they must comply with Dogdrop's then-current qualifications and training requirements, including completing any additional training.
Training & Support Program
Franchisor Assistance
Dogdrop provides comprehensive assistance to its franchisees, starting with pre-opening support. This includes site selection guidelines and approval, criteria for the Dogdrop outlet's layout and design, and access to a confidential Brand Standards Manual. Dogdrop also provides a list of required equipment, fixtures, and supplies, along with initial training for up to three individuals at its headquarters or an affiliate location. During the opening phase, Dogdrop offers two days of on-site assistance. For ongoing support, Dogdrop conducts inspections to ensure quality, provides updated lists of approved suppliers, and offers samples of advertising and promotional materials. Franchisees can also receive individualized assistance by phone, video conference, email, or postal service, and are subject to mandatory additional training programs or annual business meetings.
Initial Training Hours
48
Training Location
Los Angeles, CA
Ongoing Support
After opening, Dogdrop franchisees receive ongoing support through various channels. This includes mandatory or optional additional training programs and annual business meetings, which may last up to five days per year at a designated location. Dogdrop also offers remedial on-site training and assistance at the franchisee's premises upon request or as deemed appropriate, with the franchisee covering the trainer's per diem fee and expenses. Franchisees can also receive individualized assistance and counseling via telephone, video conference, electronic mail, or postal service. Dogdrop conducts inspections of the franchised business to ensure compliance with standards, provides written specifications for required equipment and updated lists of approved suppliers, and offers samples of advertising and promotional materials from time to time.
Franchise Requirements
Industry Experience Required
No
Management Experience Required
No
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
retail
Owner Participation
supervisory
Territory Type
limited
Territory Size Requirements
Dogdrop territories are defined after a specific location for the Dogdrop outlet is identified and approved. Each territory is located within a portion of a town, city, or county. Dogdrop territories are identified by factors such as a radius, a group of contiguous zip codes, political boundaries, natural boundaries, and competition. The size of the territory is based on various demographic data, which may include minimum numbers of households, average home prices, and household incomes, all determined at Dog Franchise Group, LLC's discretion.
Staffing Notes
Dogdrop provides standards for qualifications and training for its employees. The Operating Principal, who must have at least a 10% equity interest if the franchisee is a business entity, and the General Manager must complete Dogdrop's Initial Management Training Program. For multi-unit developers, a General Manager is required for any franchised business the owner is not directly supervising. All personnel with access to confidential information must sign a Non-Disclosure/Non-Competition Agreement. Dogdrop's Brand Standards Manual includes a profile of the ideal employees, recruitment guidelines, job descriptions (including Daycare Facility Manager and Droperator), orientation procedures, detailed training topics (such as health, emergencies, sales, technology, and customer service), personnel policies, scheduling, payroll, and uniform requirements.