GROOMBAR Franchise
Audited FinancialsRisk Score
Pending analysis
Investment Range
$283,000 - $828,000
Franchise Fee
$19,750
Min Cash Required
$50,000
Total US Locations
169
Business Summary
NPM Franchising, LLC offers franchises under two main brands: GROOMBAR and EarthWise Pet. GROOMBAR locations primarily provide in-store pet grooming and self-wash services. EarthWise Pet stores expand on this by offering retail pet food and supplies along with in-store pet grooming and self-wash services. Franchisees also have the option to add mobile pet grooming services to either of these two franchise concepts. The businesses aim to serve pet owners who are looking for friendly and clean facilities, high-quality holistic and natural pet products, and professional grooming and self-wash services.
Corporate History
NPM Franchising, LLC was initially formed as Nature's Pet Franchising, LLC in Oregon on February 26, 2008. The company underwent name changes, becoming Nature's Pet Market Franchising, LLC in March 2011, and then NPM Franchising, LLC in January 2013. In March 2017, it re-domiciled to Washington State. NPM Franchising, LLC began offering franchises in March 2008. The company has expanded through acquisitions, including PET STUFF FRANCHISING, LLC in 2021, which brought in the Dee-O-Gee by EarthWise Pet concept and other brands like Bentley's and Pet Pros. In March 2023, NPM Franchising, LLC acquired The Pet Depot Companies, adding the Pet Depot franchise system. It is expected that most of these acquired outlets will eventually be converted to one of NPM Franchising, LLC's primary brands.
Financial Overview
Investment Range
$283,000 - $828,000
Franchise Fee (Low)
$19,750
Franchise Fee (High)
$39,500
Minimum Cash Required
$50,000
Royalty %
5%
Marketing %
1.5%
Equipment Costs (Low)
$145,000
Equipment Costs (High)
$505,000
Working Capital
$85,000
Audited Financials
Yes
Offers Financing
Yes
Audit Opinion
Unqualified opinion
Financial Health Notes
The audited financial statements for NPM Franchising, LLC as of September 30, 2023, 2022, and 2021 received an unqualified opinion from the independent auditor, indicating that they present the financial position fairly in all material respects. There are no specific notes or qualifications from the auditor about the company's ability to continue as a going concern or other significant financial health concerns identified in the auditor's report. The unaudited financial statements for November 30, 2023, are provided but do not come with an audit opinion.
Financing Details
NPM Franchising, LLC offers financing exclusively for initial franchise fees when a franchisee purchases multiple franchises simultaneously. Under this arrangement, if a franchisee meets the franchisor's credit standards, they can pay 70% of the total initial franchise fees upon signing the agreements and finance the remaining 30%. This balance is paid in equal monthly installments with a 10% annual interest rate. The repayment period is amortized from the signing date until the deadline for opening the last franchise according to the development schedule. The only security required is personal signatures on a promissory note from the franchisee and their spouse, or all owners of the business entity. Apart from this specific multi-unit initial fee financing, NPM Franchising, LLC does not provide any other direct or indirect financing.
Performance Metrics
Total US Locations
169
Franchised Units
123
Corporate Units
46
Avg Square Footage
1,675
Franchising Since
2008
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Summary
NPM Franchising, LLC has no litigation to disclose in this Item.
Bankruptcy History
NPM Franchising, LLC has no bankruptcy history to disclose in this Item.
Agreement Terms
Initial Term
10 years
Renewal Term
10 years
Renewal Conditions
To renew their franchise agreement, NPM Franchising, LLC franchisees must provide written notice between 6 and 9 months before the initial term expires. They must have faithfully performed all obligations under the original agreement and be in good standing. Renewal also requires the franchisee to refurbish, remodel, or replace the Franchise Premises and any obsolete equipment to conform to current brand standards. They will also need to sign a new franchise agreement, which may have materially different terms, and undergo any prescribed retraining programs at their own expense. Finally, franchisees must execute a general release of claims against the franchisor, as permitted by applicable law.
Training & Support Program
Franchisor Assistance
NPM Franchising, LLC provides significant assistance to its franchisees both before and after opening. Before a franchisee opens, the franchisor helps designate a Franchise Territory, approves the selected site and lease (with potential charges for travel expenses), and approves the store's site-plan to maintain a uniform image. The franchisor provides a mandatory initial training program for the franchisee and manager, lends a confidential Operations Manual, and supplies lists of approved vendors. For GROOMBAR franchisees, this training is remote, and on-site opening assistance is optional. For EarthWise Pet, 3 to 5 days of on-site assistance at the Franchise Premises is provided, with the franchisor covering the trainer's expenses. After opening, NPM Franchising, LLC administers the marketing fund, provides access to approved local advertising materials, and offers general ongoing supervision and support. The franchisor may also offer additional ongoing assistance, such as product training, management training, marketing training, and IT and systems training. They can formulate and conduct national and regional promotion programs and offer refresher training programs and franchisee retreats, which may be optional or required. Additionally, NPM Franchising, LLC may inspect the Franchise Premises and supplier facilities to ensure compliance with standards and may offer pricing guidance.
Initial Training Hours
344
Training Location
Seattle, Washington (in-person) and remote via webcast/technology (hybrid)
Ongoing Support
After opening, NPM Franchising, LLC administers the marketing fund and provides general ongoing supervision and support for the franchise system, including access to local advertising materials. The franchisor may also offer additional ongoing assistance, such as product training, management training, marketing training, and IT and systems training. They can formulate and conduct national and regional promotion programs and offer refresher training programs and franchisee retreats, which may be optional or required. Additionally, NPM Franchising, LLC may inspect the Franchise Premises and supplier facilities to ensure compliance with standards and may offer pricing recommendations regarding pricing for products and services.
Franchise Requirements
Ideal Candidate Profile
NPM Franchising, LLC requires the franchisee, or one of their owners if the franchisee is an entity, to participate in the actual day-to-day operation of the franchise business. If a store manager is hired, the franchisee is still expected to supervise the franchise and visit the premises as required by the Operations Manual. Any designated manager must successfully complete the initial training program. The franchisor emphasizes that the franchisee will need business management skills to successfully hire and oversee a general manager if they choose to delegate day-to-day operations.
Industry Experience Required
No
Management Experience Required
Yes
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
Retail
Owner Participation
Supervisory
Territory Type
Protected
Territory Size Requirements
NPM Franchising, LLC defines its franchise territories based on a mileage radius from the Franchise Premises. The minimum territory size is typically a 1/8 driving mile radius. Franchise territories usually range from a 1/8 driving mile radius for urban downtown locations up to a 3 driving mile radius. The exact size and dimensions can vary, taking into account factors like population, growth trends, local affluence, topography, geography, density, and demographics.
Staffing Notes
NPM Franchising, LLC requires that each franchisee's employees complete a training program directed by the franchisee or their designated manager. The franchisor emphasizes that franchisees are responsible for controlling their own employees and contractors, including hiring, firing, directing, supervising, and setting work schedules. Franchisees must maintain employee records to clearly show that employees are not employed by the franchisor and must comply with all federal and state labor laws regarding wages, compensation, payroll taxes, withholding, workers' compensation, and benefits. The training curriculum provided by NPM Franchising, LLC for franchisees covers product knowledge, pet nutrition, point-of-sale system usage, merchandising, customer service, and service delivery, indicating these areas are crucial for employee competency.