Risk Score
Pending analysis
Investment Range
$71,150 - $448,900
Franchise Fee
$55,000
Total US Locations
16
Business Summary
Pet Passages Franchising, Inc. grants franchises to operate businesses that provide pet cremation and memorialization products and services. These services are offered at wholesale and retail to veterinarians, pet hospitals, humane societies, and individual families mourning the loss of their pets. The business model utilizes a proprietary pet tracking software, an online pet obituary system called Pet Tales, and includes training on operating a pet crematorium and memorialization business. Franchisees can integrate the Pet Passages system into existing funeral homes, veterinary hospitals, or humane societies, or establish a new business.
Corporate History
Pet Passages Franchising, Inc. was formed on November 23, 2015, in New York and began offering Pet Passages franchises on January 25, 2016. The company's sole business is offering these franchises. Its affiliate, Pet Passages, Inc., was formed in July 2011 by Michael Harris, who is the sole shareholder of both entities. Pet Passages, Inc. owns the trademarks and, from 2011 to 2015, licensed its proprietary software, websites, and coaching to pet funeral homes. It has since granted Pet Passages Franchising, Inc. an exclusive license to sublicense the trademarks and utilize them within the system. Other affiliates, MindyAnn, Inc. and Ellis Wallace Enterprises, Inc., operate company-owned Pet Passages outlets that also serve as training facilities for franchisees.
Financial Overview
Investment Range
$71,150 - $448,900
Franchise Fee (Low)
$55,000
Franchise Fee (High)
$75,000
Royalty %
6%
Marketing %
1%
Equipment Costs (High)
$163,000
Working Capital
$13,400
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
The Franchise Disclosure Document highlights a special risk concerning Pet Passages Franchising, Inc.'s financial condition. It states that the franchisor's financial standing, as presented in its financial statements, calls into question its ability to provide services and support to franchisees. However, the independent auditor's report for the financial statements as of December 31, 2023, issues an unqualified opinion, indicating that the financial statements are presented fairly in all material respects.
Financing Details
Pet Passages Franchising, Inc. does not offer any direct or indirect financing options to its franchisees. The company also does not guarantee any of the franchisee's notes, leases, or other obligations. The franchisor does, however, reserve the right to offer financing in the future.
Performance Metrics
Total US Locations
16
Franchised Units
12
Corporate Units
4
Avg Square Footage
2,750
Franchising Since
2016
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Summary
Pet Passages Franchising, Inc. has no litigation to report, as no litigation is required to be disclosed in this item.
Bankruptcy History
Pet Passages Franchising, Inc. has no bankruptcy history to report, as no bankruptcy information is required to be disclosed in this item.
Agreement Terms
Initial Term
10 years
Renewal Term
10 years
Renewal Conditions
To renew their Pet Passages franchise agreement, franchisees must provide written notice of their intent to renew at least 9 months before the current term expires. Six months prior to expiration, Pet Passages Franchising, Inc. will review the business and require the franchisee to complete any necessary modifications or renovations to meet current brand standards, at the franchisee's expense. The franchisee must be in good standing, having substantially complied with all terms of the agreement and timely paid all monetary obligations. They will also be required to sign the franchisor's then-current franchise agreement (which may have different terms), execute a general release of claims against the franchisor, attend required training, and provide proof of their right to remain in the location. A renewal fee equal to half of the then-current initial franchise fee is also required.
Training & Support Program
Franchisor Assistance
Before opening, Pet Passages Franchising, Inc. grants a sublicense for the brand trademarks, provides written specifications and a list of approved suppliers for necessary goods and services, and lends a copy of the confidential Operations Manual. The franchisor offers prototype layout specifications and requires approval of construction plans. It provides initial training for two principals or managers for approximately 10.5 days at its Rochester, NY facility and 3 days of on-site opening assistance at the franchisee's location. The franchisor also advises on suggested product and service prices. During operation, Pet Passages Franchising, Inc. holds optional periodic conferences, notifies franchisees of changes to standards and suppliers, and maintains the main Pet Passages websites as well as a specific website for each franchisee. It provides access to advertising materials developed by the Advertising and Promotion Fund and offers consultation for administrative and operational questions. The franchisor also offers advanced and refresher training for a fee and reviews requests for approval of new non-proprietary goods, services, or suppliers. Field representatives periodically visit and inspect franchised businesses to ensure compliance.
Initial Training Hours
83
Training Location
Ontario, NY
Ongoing Support
After opening, Pet Passages Franchising, Inc. holds optional periodic conferences to discuss system changes and issues affecting franchisees. It notifies franchisees of changes to standards, specifications, and approved suppliers. The franchisor maintains the main Pet Passages websites and creates and maintains a website for each franchisee. Franchisees receive access to advertising and promotional materials developed by the Advertising and Promotion Fund. Pet Passages Franchising, Inc. provides periodic consultation in response to franchisee inquiries about administrative and operational questions, advertising, specifications, bookkeeping, purchasing, inventory control, inspections, and new system developments. Goods and services are made available directly or through approved suppliers. The franchisor also offers advanced and refresher training for an additional fee and reviews requests for approval of new non-proprietary goods, services, or suppliers. Field representatives periodically visit and inspect franchised businesses to observe operations, interview employees, and review records for compliance.
Franchise Requirements
Ideal Candidate Profile
Pet Passages Franchising, Inc. seeks franchisees who may already operate funeral homes, veterinary hospitals, or humane societies. However, the franchisor also welcomes candidates who have no prior experience in operating a funeral or crematorium business.
Industry Experience Required
No
Management Experience Required
No
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
Commercial
Owner Participation
Hands-On
Territory Type
exclusive
Territory Size Requirements
Pet Passages Franchising, Inc. offers a standard exclusive territory defined by county lines, encompassing approximately 300,000 households around the business location. Franchisees have the option to purchase additional extra territories, each comprised of additional counties with an estimated 50,000 households, up to a general maximum of 500,000 households. In rare circumstances where a territory exceeds 500,000 households, an additional fee of $5,000 will be charged for every 10,000 households above this threshold.
Staffing Notes
Pet Passages Franchising, Inc. requires franchisees to hire and train all employees at their own expense, maintaining sole responsibility for employment terms, compensation, and all HR functions including hiring, firing, discipline, and scheduling. Franchisees must ensure a sufficient number of trained employees are maintained to meet customer service and operational quality standards. The Operations Manual includes job descriptions for roles such as Owner/Manager, Pet Care Specialist, and Pet Care Coordinator.