Risk Score
Pending analysis
Investment Range
$397,600 - $745,800
Franchise Fee
$30,000
Total US Locations
25
Business Summary
petbar Boutique operates upscale, personalized pet grooming and bathing boutiques. These locations offer services specifically for dogs, including washing, grooming, teeth brushing, nail services, gland care, and facial care. They also provide related products and services to the public, such as high-quality pet food and treats, a pet pickup and drop-off taxi service, and a monthly unlimited 'Bath & Brush' subscription.
Corporate History
PB Franchise, LLC was organized in Texas on August 31, 2017. Before that, an affiliate company called Pet Bar, Inc. was formed in Texas on April 9, 2015. Pet Bar, Inc. has been operating petbar Boutiques since 2015, with a second location opening in 2020.
Financial Overview
Investment Range
$397,600 - $745,800
Franchise Fee (Low)
$30,000
Franchise Fee (High)
$45,000
Royalty %
6%
Marketing %
2%
Equipment Costs (Low)
$294,000
Equipment Costs (High)
$491,000
Working Capital
$62,500
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
The FDD highlights a special risk regarding petbar Boutique's financial condition. The franchisor's financial statements, found in Item 21, raise questions about its ability to provide service and support to franchisees.
Financing Details
petbar Boutique does not offer any direct or indirect financing to its franchisees. Franchisees are responsible for securing their own funding and the franchisor does not guarantee any notes, leases, or other obligations.
Performance Metrics
Total US Locations
25
Franchised Units
23
Corporate Units
2
Avg Square Footage
2,450
Franchising Since
2017
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Summary
petbar Boutique has no litigation to report. Item 3 of the FDD states that no litigation is required to be disclosed.
Bankruptcy History
petbar Boutique has no bankruptcy history to report. Item 4 of the FDD explicitly states that no bankruptcy information is required to be disclosed.
Agreement Terms
Initial Term
10 years
Renewal Term
10 years
Renewal Conditions
To renew their franchise agreement, petbar Boutique franchisees must meet several conditions. They need to be in full compliance with their current agreement, have no more than three instances of default, and provide written notice at least ten months before the term ends. Franchisees must also sign a new franchise agreement, pay a Successor Agreement Fee equal to 25% of the then-current initial franchise fee, upgrade their boutique and equipment to meet current brand standards, sign a general release of claims, and fulfill any current qualification and additional training requirements. The new agreement may have terms and conditions different from the original.
Training & Support Program
Franchisor Assistance
petbar Boutique provides several types of support to its franchisees. Before opening, the franchisor offers initial training for the franchisee or operating principal and the general manager at no cost, with additional attendees incurring a daily fee. They also assist with location approval, construction and renovation guidance, and provide a list of approved suppliers. After opening, petbar Boutique offers ongoing services such as notifying franchisees of product and service changes, offering additional training for managers (for a fee), conducting mandatory meetings and seminars, inspecting boutiques for quality, providing advice and materials on management and operations, suggesting retail prices, and supporting gift card and loyalty programs. The franchisor also offers local advertising plans and continuing advisory assistance.
Initial Training Hours
40
Training Location
Dallas, TX
Ongoing Support
After opening, petbar Boutique franchisees receive ongoing support including notifications about changes to products and services. The franchisor provides additional training programs for managers, conducts mandatory meetings and seminars for franchisees, and inspects boutiques to maintain quality standards. Franchisees also receive advice and written materials on managing and operating their boutiques, including new developments in equipment and operational systems. The franchisor provides suggested retail prices, may establish gift card and loyalty programs, and can offer local advertising and promotional materials. Additionally, petbar Boutique provides other continuing advisory assistance as deemed appropriate for the operation of the franchisee's business.
Franchise Requirements
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
exclusive
Territory Size Requirements
Each petbar Boutique territory is typically defined as a 3-mile radius around the location or an area with a minimum population of 50,000, whichever is smaller. The precise size of the designated area is determined by petbar Boutique based on various factors such as population density, demographics, traffic patterns, and other geographical features.
Staffing Notes
A petbar Boutique requires either the franchisee, their Operating Principal, or one fully trained General Manager to dedicate full-time effort to managing the business. If the franchisee or Operating Principal is not the General Manager, they are not required to be full-time. The General Manager must be qualified, experienced in managing a petbar Boutique, and must successfully complete the initial training program, though they do not need an equity interest. All petbar Boutique employees are expected to be engaging, outgoing, qualified, and trained to uphold the brand's standards, maintain a neat appearance, and provide competent, courteous service. Employees performing licensed services must hold current licenses. Additionally, any employees with access to confidential information, including managers, assistant managers, and directors of operations, must sign confidentiality and non-competition agreements. The franchisor does not assist in hiring but expects all employees to meet job responsibilities.