Risk Score
Pending analysis
Investment Range
$137,850 - $219,000
Franchise Fee
$35,550
Total US Locations
159
Business Summary
A Pet Wants franchise sells pet food and supplies along with pet grooming services. Pet Wants operates from a permanent retail store location and also offers home delivery services. Franchisees may start by offering only delivery and shipping services but must open a Pet Wants store within 12 months. The business targets dog and cat owners and markets its services through advertising, personal solicitations to referral sources like veterinarians and groomers, and by setting up displays and offering samples at public events.
Corporate History
Pet Wants Franchise System, LLC was founded in Ohio on March 1, 2015, specifically to offer and support Pet Wants franchises. The company began offering franchises in April 2015. Although Pet Wants Franchise System, LLC itself has never operated a Pet Wants franchise, an entity called LAC143 LLC, whose owner has a non-controlling interest in PWFS, operated a similar dog and cat food delivery service and two retail locations in Cincinnati, Ohio, starting in 2010 and 2012. LAC143 LLC later became Pet Wants' first franchise owner in April 2015. Pet Wants' parent company is Franchise Funding Group, LLC, and it has several affiliates in other franchise systems, including The Growth Coach, Fresh Coat, Caring Transitions, and TruBlue.
Financial Overview
Investment Range
$137,850 - $219,000
Franchise Fee (Low)
$35,550
Franchise Fee (High)
$48,500
Royalty %
7%
Marketing %
2%
Equipment Costs (Low)
$60,000
Equipment Costs (High)
$130,000
Working Capital
$15,000
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
Pet Wants Franchise System, LLC presents audited financial statements. The company experienced a decrease in cash from $824,608 in 2023 to $508,115 in 2024, while accounts receivable significantly increased from $322,685 to $982,018 in the same period. Inventory also saw a substantial rise in 2024. The company issued notable distributions to its members, totaling $195,000 in 2024 and $285,000 in 2023. A significant event in October 2024 was receiving a $374,189 refund credit for damaged and unsellable pet food inventory, which will be applied to future purchases in 2025. In January 2024, Pet Wants sold its wholly-owned pet grooming store to a franchise owner for $20,000.
Financing Details
Pet Wants Franchise System, LLC does not offer any direct or indirect financing to its franchisees. The franchisor also does not guarantee any notes, leases, or other obligations of the franchisee.
Performance Metrics
Total US Locations
159
Franchised Units
159
Corporate Units
0
Avg Square Footage
1,000
Franchising Since
2015
Legal & Compliance Analysis
Recent Litigation
Yes
Bankruptcy
Yes
Litigation Count
4
Litigation Summary
Pet Wants Franchise System, LLC and its affiliates have been involved in four litigation cases. In 2021, an affiliate called F.C. Franchising Systems, Inc. (Fresh Coat) settled with Virginia over an undisclosed personal bankruptcy of an officer, offering refunds to three franchise purchasers and paying $8,000 in penalties. In 2022, another affiliate, G.C. Franchising Systems, Inc. (Growth Coach), settled with Virginia over an undisclosed personal bankruptcy of a director, offering rescission to one franchisee (who declined) and paying $3,500 in penalties. Pet Wants Franchise System, LLC and its affiliates entered into two Consent Orders with the California Commissioner of Financial Protection and Innovation in 2021. The first, in July 2021, was due to an officer/director's 2012 personal bankruptcy not being disclosed in certain FDDs between 2012 and 2016. The second, in December 2021, was because their CPA firm was not registered in Ohio, resulting in a $5,000 penalty, which was reimbursed by the CPA.
Bankruptcy History
Pet Wants Franchise System, LLC has had an officer/director with a personal bankruptcy filing in 2012. This bankruptcy was not disclosed in certain Franchise Disclosure Documents issued between 2012 and October 2016. This issue led to Pet Wants and its affiliates entering into a Consent Order with the California Commissioner of Financial Protection and Innovation in July 2021. The franchisor acknowledged the non-disclosure and agreed to comply with the Corporations Code. Additionally, two of Pet Wants' affiliates, F.C. Franchising Systems, Inc. (Fresh Coat) and G.C. Franchising Systems, Inc. (Growth Coach), had similar issues regarding undisclosed personal bankruptcies of their officers or directors in 2021 and 2022 respectively, resulting in settlements and penalties with the Virginia State Corporation Commission.
Agreement Terms
Initial Term
10 years
Renewal Term
10 years
Renewal Conditions
To renew a Pet Wants franchise, franchisees must submit a written request between six months and one year before their agreement expires. They must be in good standing, having substantially complied with all terms of their agreements. Franchisees also need to meet Pet Wants' current qualification standards for new franchisees, including having a good business reputation, credit rating, and adequate financial resources. If operating a store, they must have the right to remain in possession of the store (or a suitable substitute) for the entire renewal term and, at their own expense, renovate and refurbish the store to meet current brand standards. Finally, franchisees must sign Pet Wants' then-current franchise agreement (which may have different terms and fees, but no initial franchise fee), execute a general release (if allowed by law), and complete any current training requirements.
Training & Support Program
Franchisor Assistance
Before opening, Pet Wants helps with approving territory boundaries and store locations for retail franchises. They provide written specifications and supplier lists for necessary equipment, products, services, and supplies. Franchisees receive access to digital advertising, marketing templates, and a loan of the Operations Manual. Pet Wants also provides digital forms for sales reporting and business operations, and conducts an initial training program for up to two individuals. After opening, Pet Wants provides ongoing assistance via telephone, email, and web-based programs as needed, along with other materials and information. They may hold regional and national meetings, which franchisees might be required to attend, and conduct occasional office visits for operational support. Pet Wants maintains a website that promotes franchisees and offers marketing materials through a National Branding Fund.
Initial Training Hours
40
Training Location
Corporate headquarters in Cincinnati, Ohio
Ongoing Support
After opening, Pet Wants franchisees receive ongoing assistance through telephone, electronic mail, and web-based programs as deemed necessary by the franchisor. Pet Wants may also provide other materials and information as needed. The franchisor may hold regional and national meetings and conferences to discuss sales, service procedures, personnel, and marketing; attendance at these meetings may become mandatory, with reasonable registration fees. Pet Wants representatives may visit the franchisee's office for additional operational support. The franchisor maintains a website to promote franchisees' services and includes their contact information on a dedicated page. The National Branding Fund also makes certain marketing materials and promotional services available to franchisees.
Franchise Requirements
Ideal Candidate Profile
Pet Wants seeks business-minded individuals who can commit to full-time management of the franchised business, either personally or by designating an approved principal to serve as a full-time manager who successfully completes the training program. While previous experience in retailing or the pet food industry is not required, candidates must be capable of forming a limited liability company or corporation and ensuring its compliance with franchise requirements. The designated manager is responsible for general oversight and management of operations.
Industry Experience Required
No
Management Experience Required
Yes
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
Hybrid
Owner Participation
Supervisory
Territory Type
Limited
Staff Count
2
Territory Size Requirements
Pet Wants defines its franchise territories by postal codes. The base initial franchise fee covers a territory with a population of up to 100,000 people. If the population exceeds 100,000, franchisees must pay an additional $500 for every increment or part of 1,000 people over that baseline. While there is no maximum population limit, Pet Wants recommends a minimum population of 75,000 for a territory. Population figures are determined using extrapolated Census data, demographic information, and the franchisor's designated mapping software.
Staffing Notes
Pet Wants franchisees are responsible for hiring, training, and supervising the necessary personnel to operate the business. All employees are considered employees of the franchisee, not the franchisor, and the franchisee retains ultimate control over employment terms, including hiring, compensation, and discipline. Franchisees must establish their own employee training programs that meet franchisor standards and guidelines. Before hiring any prospective employee who will enter customer residences, the franchisee must conduct a background review of their criminal history and other relevant histories, and must not hire individuals with a propensity for violence, dishonesty, negligence, or a felony conviction within the past seven years. Management employees are required to sign confidentiality and non-competition agreements. Each franchised business must have a full-time manager or marketing employee, who must be a principal of the franchisee and successfully complete the franchisor's training program.