Salty Dawg Pet Salon Franchise
Audited FinancialsRisk Score
Pending analysis
Investment Range
$132,350 - $392,900
Franchise Fee
$112,500
Min Cash Required
$3,000
Total US Locations
1
Business Summary
Salty Dawg Pet Salon offers an area representative franchise opportunity where individuals or entities, known as Area Representatives, recruit and support Salty Dawg Pet Salon unit franchisees within a specified territory. The unit franchises provide pet grooming services and related products. As an Area Representative, Salty Dawg Pet Salon Area Representatives find, solicit, and recruit prospective franchisees to purchase and operate unit businesses, and then provide ongoing marketing and operational support to these unit franchisees within their designated Area Representative Territory. Salty Dawg Pet Salon Area Representatives earn compensation through a percentage of the initial franchise fees and ongoing royalty fees paid by the unit franchisees they recruit and support.
Corporate History
Salty Dawg Pet Salon, operating as Purely Pet LLC, was formed in Virginia on May 20, 2024. The company acquired substantially all assets of its predecessor, Salty Dawg, LLC, on July 26, 2024. Salty Dawg, LLC was a Delaware limited liability company formed on August 13, 2018, and had been offering unit franchises under the same trademarks since 2019. Purely Pet LLC began offering Area Representative franchises in August 2024 and Unit Franchises in August 2024. Salty Dawg Pet Salon is a part of the Loyalty, LLC family of brands, which was formed in 2017 and is its parent company. Other affiliates under Loyalty, LLC, like ATAX LLC and Zoomin Groomin USA, LLC, also offer franchises.
Financial Overview
Investment Range
$132,350 - $392,900
Franchise Fee (Low)
$112,500
Franchise Fee (High)
$375,000
Minimum Cash Required
$3,000
Equipment Costs (Low)
$750
Equipment Costs (High)
$1,500
Working Capital
$4,000
Audited Financials
Yes
Offers Financing
Yes
Audit Opinion
Unqualified opinion
Financial Health Notes
Salty Dawg Pet Salon has significant financial health concerns. The company's financial statements show a negative retained earnings of $(230,448) and a net loss of $(260,448) for the year ended December 31, 2024, with total liabilities far exceeding total assets. This financial condition has led to specific warnings in the FDD, stating that it calls into question Salty Dawg Pet Salon's ability to provide services and support to its franchisees. Regulatory bodies in several states, including California, Illinois, Maryland, Minnesota, North Dakota, and Washington, have mandated that Salty Dawg Pet Salon defer the collection of initial franchise fees until pre-opening obligations are met due to these financial concerns. Additionally, the estimated initial investment required from a franchisee exceeds the franchisor's shareholder's equity.
Financing Details
Salty Dawg Pet Salon may, at its discretion, offer financing for up to 50% of the Initial Area Representative Fee. This financing comes with an interest rate of 12% per annum and a repayment period ranging from 90 days to three years. A personal guarantee is required as security for the debt, and if the Area Representative is an entity, its owners must personally guarantee the debt.
Performance Metrics
Total US Locations
1
Franchised Units
1
Corporate Units
0
Franchising Since
2024
Legal & Compliance Analysis
Recent Litigation
Yes
Bankruptcy
No
Litigation Count
9
Litigation Summary
Salty Dawg Pet Salon's Chairman, John T. Hewitt, has been named in several lawsuits and governmental actions, though Salty Dawg Pet Salon itself has no direct litigation. One lawsuit from 2021 involved JTH Tax LLC (Liberty Tax Service) accusing Mr. Hewitt and ATAX LLC of tortious interference, breach of employment agreement, and unfair competition. This case settled in late 2021 for $545,000, with agreements to refrain from certain competitive practices. Earlier cases from 2017-2018 against Mr. Hewitt and Liberty Tax, Inc. included claims for breach of contract and defamation from a former employee and a related company, both settled for $50,000 in 2019. Multiple shareholder derivative actions against Mr. Hewitt on behalf of Liberty Tax, Inc. from 2017-2018 alleged breaches of fiduciary duty due to misconduct. These were consolidated and settled in 2019, leading to Liberty Tax implementing anti-harassment policies and corporate governance changes, with no finding of liability for the defendants. Another case from 2018 involved a plaintiff suing JTH Tax, Siempre Tax, and Mr. Hewitt for unpaid monies under purchase agreements and fraud. This settled in 2018 with JTH Tax paying $775,000 and a portion of future revenue to the plaintiff. Governmental actions include a 2019 consent order from California's Commissioner of Financial Protection and Innovation against Mr. Hewitt, requiring disclosure of a federal court final order related to Liberty Tax Service. This federal action from 2019 by the Department of Justice alleged that Liberty Tax failed to control its franchisees, leading to false tax returns. Liberty Tax settled, agreeing to compliance program enhancements and not to rehire Mr. Hewitt, who was referenced in the order but not a named party. In summary, Salty Dawg Pet Salon's Chairman has a history of legal disputes, including a recent settlement in 2021 and several others from 2017-2019, primarily stemming from his previous roles with Liberty Tax entities. These cases involved allegations ranging from breach of contract and fiduciary duty to unfair competition and governmental scrutiny over franchise compliance.
Bankruptcy History
Salty Dawg Pet Salon has no bankruptcy history to disclose.
Agreement Terms
Initial Term
10 years
Renewal Term
10 years
Renewal Conditions
To renew their Area Representative Agreement, Salty Dawg Pet Salon franchisees must notify Salty Dawg Pet Salon in writing at least 120 days before the agreement expires. They must also sign a new Area Representative Agreement, which may not have materially different terms and conditions, and execute a general release of claims. Currently, Salty Dawg Pet Salon does not charge a renewal fee.
Training & Support Program
Franchisor Assistance
Salty Dawg Pet Salon provides initial training for Area Representatives, offered either in Virginia Beach, another designated location, or online. They also provide an Operations Guide with guidance for running the business and may issue specifications for computer hardware, software, and supplies. While Salty Dawg Pet Salon does not assist with site selection (Area Representatives can work from home or an office), it offers ongoing operational support for problems, marketing assistance, and may provide additional training or seminars. For advertising, Salty Dawg Pet Salon does not collect fees for an advertising fund but develops and maintains a corporate website with Area Representative contact information. Salty Dawg Pet Salon controls all aspects of digital marketing, including websites, social media, and digital advertising, to promote the brand and franchise opportunities. They may also negotiate digital campaign contracts with vendors, where Area Representatives would pay a pro-rata share if they choose to participate. Salty Dawg Pet Salon supplies advertising material templates and may establish an advisory council for operational and advertising policy.
Initial Training Hours
9.5
Training Location
Virginia Beach, VA, another designated training center, or online
Ongoing Support
Salty Dawg Pet Salon provides ongoing operational support to Area Representatives, assisting them with any operating problems or issues they encounter. Salty Dawg Pet Salon also offers marketing assistance and support. Additionally, Salty Dawg Pet Salon may choose to offer and require Area Representatives to attend further training or seminars.
Franchise Requirements
Ideal Candidate Profile
Salty Dawg Pet Salon seeks Area Representatives who are business-minded individuals capable of recruiting and supporting unit franchisees. Ideal candidates are expected to be actively involved in the day-to-day operations of their Area Representative business, dedicating their time and best efforts to the role. They should be proficient in soliciting, screening, and recruiting prospective unit franchisees, providing them with ongoing operational and marketing support, conducting performance and quality control assessments, and fostering strong franchisee relations.
Industry Experience Required
No
Management Experience Required
Yes
Sales Experience Required
Yes
Technical Skills Required
No
Operational Details
Location Type
Home-Based
Owner Participation
Hands-On
Territory Type
Non-Exclusive
Territory Size Requirements
Salty Dawg Pet Salon Area Representative territories are defined by zip codes, political, or geographic boundaries. A typical territory is expected to accommodate 10 to 30 Unit Territories for future development. Each individual Unit Territory within the Area Representative's region must have a minimum population of 125,000 residents.
Staffing Notes
Salty Dawg Pet Salon does not provide assistance with hiring or training employees for the Area Representative's business, nor does it establish specific staffing requirements or hours of operation for the Area Representative's franchised business.