Risk Score
Pending analysis
Investment Range
$74,250 - $121,500
Franchise Fee
$65,000
Total US Locations
5
Business Summary
Pets Are Inn operates a pet boarding system that arranges for household pets, primarily dogs and cats, to be boarded with pre-selected host families in their homes. This system eliminates the need for traditional kennel facilities by matching pets with host families who provide individual care in a home environment. Franchise owners are responsible for managing the network of host families and the pet boarding services.
Corporate History
Pets Are Inn, Inc. was incorporated in Minnesota in July 1992. An affiliate, V.I.P. Touch, Inc., has been operating a Pets Are Inn business in Minnesota since October 1987. Pets Are Inn, Inc. began offering franchises in July 1993, paused during the Covid pandemic, and restarted franchise sales in Fall 2023.
Financial Overview
Investment Range
$74,250 - $121,500
Franchise Fee (Low)
$65,000
Franchise Fee (High)
$65,000
Royalty %
10%
Marketing %
1%
Equipment Costs (Low)
$6,250
Equipment Costs (High)
$40,500
Working Capital
$3,000
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
Pets Are Inn LLC, the guarantor, is a newly organized Minnesota limited liability company formed in January 2024. As of February 29, 2024, it is a startup with no financial activity, reporting only $1,000 in cash and $1,000 in owner's equity, with no liabilities or revenue for the year.
Financing Details
Pets Are Inn does not offer any direct or indirect financing to its franchisees. This means that franchisees will need to secure their own funding for initial investments and ongoing operations, as Pets Are Inn also does not guarantee any notes, leases, or other obligations.
Performance Metrics
Total US Locations
5
Franchised Units
4
Corporate Units
1
Franchising Since
1993
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Summary
Pets Are Inn has no litigation to report in Item 3 of its Franchise Disclosure Document.
Bankruptcy History
Pets Are Inn has no bankruptcy history to report in Item 4 of its Franchise Disclosure Document.
Agreement Terms
Initial Term
10 years
Renewal Term
5 years
Renewal Conditions
To renew, Pets Are Inn franchisees must provide written notice 180 days before their franchise agreement expires. They must have fully complied with all material terms and conditions of the current Franchise Agreement, including operating and quality standards, and ensured all monetary obligations to Pets Are Inn were paid on time. Franchisees must also sign the then-current franchise agreement, which may have different terms, conditions, fees, and territory definitions. Additionally, franchisees are required to make any upgrades and updates that Pets Are Inn requires and pay a renewal fee equal to 10% of the then-current initial franchise fee, due 30 days before the renewal date.
Training & Support Program
Franchisor Assistance
Pets Are Inn provides several forms of assistance to its franchisees. Before opening, Pets Are Inn discloses its standard operating procedures and furnishes an Operations Manual, provides a list of necessary equipment and supplies, offers access to its proprietary software, conducts an initial training program, and sells products and supplies bearing the PETS ARE INN logo. During the operation of the business, Pets Are Inn provides ongoing consultation and training, updates to the Operations Manual, and offers to sell various branded products and supplies.
Initial Training Hours
27.5
Training Location
Corporate headquarters in the Minneapolis, Minnesota metropolitan area
Ongoing Support
Pets Are Inn provides ongoing support through consultation and training for the duration of the Franchise Agreement. Pets Are Inn also provides updates to the Operations Manual and offers franchisees the opportunity to purchase various branded products and supplies. Additionally, Pets Are Inn may offer ongoing training and refresher programs such as regional training, annual meetings, regional meetings, study groups, and conventions. Franchisees are required to attend all annual conventions and at least 75% of all scheduled meetings annually.
Franchise Requirements
Industry Experience Required
No
Management Experience Required
No
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
Hybrid
Owner Participation
Hands-On
Territory Type
Protected
Territory Size Requirements
Each Pets Are Inn franchise territory is typically defined by city boundaries or highways and must contain at least 10,000 "Eligible Households." An Eligible Household is defined as one with an income at least 40% higher than the median income for the zip codes within that territory.
Staffing Notes
Pets Are Inn franchisees must personally supervise and participate in the business for at least the first two years. After this initial period, the business can be supervised by a full-time manager approved by Pets Are Inn who has completed the initial training. Employees are required to adhere to Pets Are Inn's dress code and must be trained by the franchisee in the methods and techniques developed by Pets Are Inn. The business model utilizes "Host Families" who are independent contractors for pet boarding services, not employees of the franchisee.