Risk Score
Pending analysis
Investment Range
$475,875 - $1,278,489
Franchise Fee
$44,100
Total US Locations
76
Business Summary
Hounds Town USA operates interactive dog care facilities that provide daycare services, dog boarding, grooming, and various other related products and services for the general public.
Corporate History
Hounds Town USA, LLC was originally organized as Hounds Town, Inc., a New York corporation, on October 30, 2007. The company later merged into its fully-owned subsidiary, Hounds Town USA, LLC, a Florida limited liability company, on March 28, 2022. Hounds Town USA has been offering franchises for its dog care businesses since August 2008. The company does not conduct business under any other names or offer franchises in other lines of business.
Financial Overview
Investment Range
$475,875 - $1,278,489
Franchise Fee (Low)
$44,100
Franchise Fee (High)
$125,000
Royalty %
6%
Marketing %
2%
Equipment Costs (Low)
$304,265
Equipment Costs (High)
$965,961
Working Capital
$52,875
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Going concern qualification
Financial Health Notes
Hounds Town USA's financial condition, as shown in its financial statements, raises questions about its ability to provide services and support to franchisees. The company experienced significant net losses of $7,842,670 in 2024 and $7,750,000 in 2023, along with negative cash flows from operations of $5,432,159 and $5,650,323 for those respective years. As of December 31, 2024, Hounds Town USA also had negative working capital of $1,617,166. These circumstances indicate substantial doubt about the company's ability to continue operating as a going concern.
Financing Details
Hounds Town USA does not provide any direct or indirect financing to its franchisees. This means the franchisor does not offer loans, lease guarantees, or other financial assistance. Franchisees are responsible for securing their own funding from third-party lenders.
Performance Metrics
Total US Locations
76
Franchised Units
75
Corporate Units
1
Avg Square Footage
5,000
Franchising Since
2008
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Summary
Hounds Town USA has no litigation history that is required to be disclosed in Item 3 of its Franchise Disclosure Document. This means Hounds Town USA has not been involved in any material litigation, including administrative, criminal, or civil actions, that would require disclosure.
Bankruptcy History
Hounds Town USA has no bankruptcy history to report.
Agreement Terms
Initial Term
10 years
Renewal Term
10 years
Renewal Conditions
To renew their franchise, Hounds Town USA franchisees must provide advance notice of intent to renew, be in good standing, sign a new franchise agreement (which may have different terms and fees, but the exclusive territory boundary will remain the same, and renewal fees will not be higher than those for similarly situated franchisees), and pay a successor franchise fee equal to 50% of the then-current initial franchise fee plus training costs. Franchisees are also required to upgrade their facility, vehicle, computer system, furniture, fixtures, and other items to Hounds Town USA's then-current standards. Additionally, they must provide proof of current licenses, insurance, and permits, and execute a general release of claims.
Training & Support Program
Franchisor Assistance
Before a Hounds Town USA business opens, the franchisor provides initial and immersion training programs, lends a copy of the confidential Franchise Brand Standards Manual, offers advice for identifying a suitable facility, approves the chosen site and lease, provides basic specifications for design and layout, and furnishes specifications for furniture, fixtures, equipment, inventory, and supplies along with a list of approved suppliers. The franchisor also offers materials and consultation for grand opening marketing and can provide additional opening assistance for a fee. After opening, Hounds Town USA informs franchisees of mandatory operating procedures, provides advice on business operations based on reports or inspections, and offers guidance on advertising and marketing. Additional training for new hires, refresher courses, or special assistance may be provided, often for an additional fee. Franchisees are also permitted to continue using confidential materials and trademarks.
Initial Training Hours
167
Training Location
Corporate headquarters in Orlando, Florida, or Denver, Colorado, an affiliate's location in New York, through a Learning Management System, or on-site at the franchisee's business.
Ongoing Support
After a Hounds Town USA business opens, franchisees receive ongoing assistance including mandatory specifications for operations, advice based on reports or inspections, and guidance on advertising and marketing. The franchisor may also provide additional training for newly hired staff, refresher courses, or advanced training, which may incur additional fees. Franchisees are also required to attend an annual meeting of all franchisees for which an annual reunion fee is charged.
Franchise Requirements
Ideal Candidate Profile
Hounds Town USA seeks franchisees who are either individuals or entities with a managing owner who is a natural person and holds at least a 25% ownership interest and voting power. If the franchisee is an entity, one of its owners must attend initial training and work in the facility for the first 90 days of operation. If a designated manager is appointed, the managing owner is still required to work in the Hounds Town USA Business at least five days per week for the first 90 days after opening. All managing owners or designated managers must successfully complete the Initial Training Program and Immersion Training Program, and any continuing training. They must also possess sufficient computer skills to operate the Computer System, required software, email, and the internet. Hounds Town USA prefers candidates who do not own or have an interest in a competitive business.
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
Exclusive
Territory Size Requirements
Hounds Town USA provides an exclusive territory that generally includes a population of approximately 100,000 people and/or a 12-minute drive time around the approved location. The exact drive time may vary based on the area's population density and urbanization. Population statistics for determining territories are derived from current United States Census reports and other chosen population data sources.
Staffing Notes
Hounds Town USA franchisees are responsible for hiring and maintaining a competent, trained staff to provide courteous, knowledgeable service and meet brand standards. The franchisee is solely responsible for all employment decisions, including hiring, firing, and training, and must inform employees that they are solely the employer, not Hounds Town USA. The entire staff must attend up to 60 hours of on-site Grand Opening Training and up to 8 hours of Phase 2 on-site training within six months of opening. The franchisee, or a managing owner (for entities), must work in the Hounds Town USA Business at least five days per week for the first 90 days after opening. Designated managers, if appointed, must be approved by Hounds Town USA and successfully complete the Initial Training Program and Immersion Training Program. All personnel with access to confidential information must sign a confidentiality agreement.