Risk Score
Pending analysis
Investment Range
$543,095 - $1,399,180
Franchise Fee
$40,095
Total US Locations
263
Business Summary
Dogtopia offers franchises for modern dog daycare, boarding, training, and spa facilities. Dogtopia Centers feature open play environments where dogs can socialize under the supervision of professionally trained coaches. Dogs are separated by size and temperament, and pet parents can monitor their dogs through webcams via the Dogtopia App. The Centers also provide various dog-related products and operate under the DOGTOPIA® name and a distinct business format and operating procedures.
Corporate History
Dogtopia, under the legal entity Better Together, LLC, was originally incorporated on September 10, 2005, in Virginia as Happy To Be Here, Incorporated. On December 7, 2015, the company changed its name to Better Together, LLC and re-domiciled to Delaware. Dogtopia began offering franchises for its Centers in September 2005. The first Dogtopia Company Store opened earlier, in 2002. From December 2012 to April 2016, Dogtopia offered area representative franchises, selling 5, though none remain operational. In February 2020, Dogtopia started offering master franchises, selling one covering Canada. Dogtopia has never directly operated a Dogtopia Center, but its affiliates have operated multiple company-owned Centers.
Financial Overview
Investment Range
$543,095 - $1,399,180
Franchise Fee (Low)
$40,095
Franchise Fee (High)
$49,500
Royalty %
7%
Marketing %
2%
Equipment Costs (Low)
$687,400
Equipment Costs (High)
$1,015,550
Working Capital
$45,000
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
Dogtopia has reported significant operating losses and negative cash flows from its operations for the fiscal years ending December 28, 2024, and December 30, 2023. These financial conditions raise substantial doubt about Dogtopia's ability to continue as a going concern. To address these concerns, Dogtopia plans to grow revenue through new franchise openings and increased royalties from existing locations, reduce operating costs, and secure additional funding via debt or equity if necessary.
Financing Details
Dogtopia does not offer any direct or indirect financing to franchisees and does not guarantee any notes, leases, or other obligations. Although Dogtopia may receive a fee from third-party lenders who provide financing to its franchisees (typically 1% of the loan amount), any such fees are contributed to the Dogtopia Foundation, a charitable organization.
Performance Metrics
Total US Locations
263
Franchised Units
222
Corporate Units
41
Avg Square Footage
5,000
Franchising Since
2005
Legal & Compliance Analysis
Recent Litigation
Yes
Bankruptcy
No
Litigation Count
2
Litigation Summary
Dogtopia has two significant litigation cases. The first case, HotBox Enterprises, LLC v. Jamie Weeks, et al., filed in June 2020, involved Dogtopia's Chief Growth Officer, Alex Samios, in a dispute concerning an area developer for a different brand. The developer was accused of breaching contractual obligations, refusing to sign franchise agreements, and starting a competing brand. The developer counter-sued for breach of contract and misrepresentation. This case was settled in February 2022, with the developer agreeing to a $2.7 million promissory note in exchange for the transfer of all assets and rights of HotBox. The second case, Kimberly Hamm v. Dogtopia Enterprises, LLC and Neil Gill, was filed in May 2024. This ongoing lawsuit is against Dogtopia and its President/CEO by a former Vice President of Operations. The dispute centers on her eligibility for an Executive Long-Term Incentive Plan after a corporate restructuring led to her outstanding participation units being deemed surrendered. Dogtopia denies liability, asserting that her continuous service eligibility ended, and has filed a motion to dismiss, which is currently awaiting a court decision.
Bankruptcy History
Dogtopia has no bankruptcy information to disclose.
Agreement Terms
Initial Term
10 years
Renewal Term
10 years
Renewal Conditions
To renew their Dogtopia franchise, franchisees must not be in default of any agreement with Dogtopia, provide written notice of their intent to renew between 270 days and one year before the current term expires, and have substantially and timely complied with all obligations. They must also sign Dogtopia's then-current franchise agreement and any ancillary documents, execute a general release, pay a renewal fee equal to 50% of the then-current non-discounted initial franchise fee, remodel and upgrade their Center's furniture, fixtures, and equipment to current standards, extend their lease for the new term, and complete any required refresher training while paying the associated fee. Dogtopia reserves the right to modify the territory upon renewal.
Training & Support Program
Franchisor Assistance
Dogtopia provides extensive assistance to its franchisees both before and after a center opens. Prior to opening, franchisees receive access to Dogtopia's operational manual, specifications for required goods and services, and guidance for site selection including demographic analysis, real estate company referrals, and lease review assistance. Dogtopia also sets up the franchisee's microsite and social media accounts and provides an initial training program. After opening, Dogtopia offers ongoing guidance and recommendations for improving operations, provides periodic training, maintains a corporate website listing all Dogtopia Centers, and manages the franchisee's microsite and social media for digital marketing. Dogtopia also administers the Brand Fund to support system-wide marketing and may conduct periodic field visits, offer products through Dogtopia Marketplace, facilitate participation in an optional Contact Center program, develop new merchandise, negotiate supplier agreements for discounts, and host periodic conferences.
Initial Training Hours
192
Training Location
Remote/online, corporate headquarters in Phoenix, Arizona, and a training facility in Scottsdale, Arizona.
Ongoing Support
After opening, Dogtopia franchisees receive ongoing guidance and recommendations to improve their center's operations, along with periodic training programs. Dogtopia manages and updates the franchisee's microsite and social media accounts, offering related digital marketing assistance. It also administers the Brand Fund, which promotes public awareness of the Dogtopia brand. Dogtopia may conduct periodic field visits for onsite consultation, offer and sell various items through the Dogtopia Marketplace, establish and administer an optional Contact Center program, develop new merchandise, negotiate purchase agreements with suppliers, and hold periodic conferences for franchisees to discuss business issues.
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
Hands-On
Territory Type
Protected
Territory Size Requirements
Dogtopia defines its franchise territories based on the number of 'Core Profile Individuals' (individuals likely to become Dogtopia customers) residing and/or working in an area. If there are fewer than 25,000 such individuals within a 3-mile radius of the approved site, the territory will be that 3-mile radius. If there are more than 25,000, Dogtopia will designate a geographic area that includes a minimum of 25,000 Core Profile Individuals, defining the boundaries by methods such as radius (potentially less than 3 miles), area codes, municipal boundaries, or polygons. The specific criteria for a 'Core Profile Individual' are considered a trade secret.
Staffing Notes
Dogtopia franchisees are responsible for determining appropriate staffing levels for their business to comply with system standards. Employees are hired, trained, and supervised by the franchisee, not Dogtopia, and the franchisee holds sole authority for all employment-related decisions and legal compliance. Dogtopia recommends that franchisees hire an employment attorney or human resources professional to develop their policies. Employees must sign an acknowledgment form explaining the franchise relationship and that the franchisee is their sole employer. A conspicuous notice explaining this relationship must also be posted for employees.