Scenthound logo

Scenthound Franchise

Audited Financials
PetsEst. 2018Jupiter, FL
www.scenthound.com

Risk Score

Pending analysis

Investment Range

$328,099 - $549,869

Franchise Fee

$30,000

Min Cash Required

$45,000

Total US Locations

122

Business Summary

Scenthound franchised businesses, known as Scenters, specialize in providing basic hygiene and routine wellness care for dogs. The services primarily focus on five key areas: Skin, Coat, Ears, Nails, and Teeth. Scenthound offers various monthly membership options, with additional services such as blow-outs, haircuts, de-shedding treatments, flea and tick treatments, facial scrubs, and nail grinding. The businesses also sell take-home retail products. A core mission of Scenthound is to educate pet owners about the importance of these services for their dog's overall health. Scenter locations typically occupy retail spaces ranging from 1,100 to 1,300 square feet.

Corporate History

Scenthound Franchising LLC was formed on March 2, 2018, in Florida, and began offering Scenthound franchises in May 2019. The brand operates under the name Scenthound® and has never offered any other franchises. Its parent company is Scenthound Holdings, LLC, which was formed earlier on September 4, 2013. Scenthound Franchising LLC also has three affiliated companies: Scenthound Corporate Stores, LLC, which owns and operates five Scenthound retail stores; Scenthound Services LLC, which provides technological systems and services to franchisees; and Scenthound IP, LLC, which owns and licenses the brand's intellectual property.

Financial Overview

Investment Range

$328,099 - $549,869

Franchise Fee (Low)

$30,000

Franchise Fee (High)

$49,900

Minimum Cash Required

$45,000

Royalty %

6%

Marketing %

1.5%

Equipment Costs (Low)

$197,800

Equipment Costs (High)

$367,000

Working Capital

$47,500

Audited Financials

Yes

Offers Financing

No

Audit Opinion

Unqualified opinion

Financial Health Notes

Scenthound Franchising LLC's financial condition raises concerns regarding the brand's ability to provide services and support to its franchisees. The Franchise Disclosure Document highlights this as a special risk for potential investors.

Financing Details

Scenthound Franchising LLC does not offer any direct or indirect financing to its franchisees and does not guarantee any loans, leases, or other obligations. Franchisees are solely responsible for arranging their own funding.

Performance Metrics

Total US Locations

122

Franchised Units

117

Corporate Units

5

Avg Square Footage

1,273

Franchising Since

2019

Agreement Terms

Initial Term

10 years

Renewal Term

10 years

Renewal Conditions

Scenthound franchisees may renew their Franchise Agreement for an additional ten-year term if they have fully complied with the agreement's provisions, made necessary capital expenditures to maintain uniformity with Scenthound's System, and satisfied all monetary obligations owed to Scenthound or its affiliates and suppliers. Franchisees must not be in default of any agreement and must provide written notice of their intent to renew between 12 months and 6 months before the Franchise Agreement expires. To renew, Scenthound franchisees are also required to sign Scenthound's then-current Franchise Agreement, which may include materially different terms and conditions, comply with current franchisee qualifications and training requirements, and sign a general release of any claims against Scenthound and its affiliates. A renewal fee of 25% of the then-current Initial Franchise Fee, with a minimum payment of $12,500, is also required.

Training & Support Program

Franchisor Assistance

Scenthound provides extensive assistance to its franchisees. Before opening, Scenthound offers an initial training program, guidance on ordering initial inventory, equipment, and signage, and general opening assistance, including sending two training team members to the Scenter. Franchisees receive a copy of the Scenthound Operations Manual, and assistance with site selection, approval of the chosen site, prototypical plans and design specifications, and information on approved products, suppliers, and recommended pricing tiers. After opening, Scenthound offers periodic assistance with marketing, management, and operations, which may include visits from field representatives who provide advice and conduct quality assurance audits. Franchisees are required to attend additional and ongoing training programs as deemed necessary and must comply with Scenthound's approval for all marketing and promotional materials. Scenthound also administers a Brand Fund for system-wide advertising and organizes mandatory periodic conferences for training and strategic discussions, for which franchisees pay a fee and cover their own travel expenses.

Initial Training Hours

72

Training Location

Corporate headquarters in Jupiter, Florida, online, or at the franchisee's location

Ongoing Support

After opening, Scenthound franchisees receive periodic assistance with marketing, management, and operations, which may include visits from field representatives who provide advice and conduct quality assurance audits. Scenthound also offers additional and ongoing training as deemed necessary, and franchisees are required to attend mandatory periodic conferences focused on sales techniques, personnel training, and merchandising procedures. The franchisor also administers the Brand Fund and provides updates to the Operations Manual to ensure continued compliance with System standards.

Franchise Requirements

Industry Experience Required

No

Management Experience Required

No

Sales Experience Required

No

Technical Skills Required

No

Operational Details

Location Type

Retail

Owner Participation

Absentee Allowed

Territory Type

Non-Exclusive

Territory Size Requirements

Scenthound defines the Designated Territory for each Scenter based on the specific area surrounding the approved location. The size and boundaries of this territory are determined by Scenthound, in its sole discretion, using mapping services like Buxton and Google Maps, and may vary for different franchisees based on the demographics of the area.

Staffing Notes

Scenthound requires that each Scenter is actively managed full-time by either the franchisee, an Operating Principal, or an approved full-time Manager. If the Operating Principal does not supervise full-time, a qualified full-time Manager must be hired to manage daily administrative operations. Franchisees are responsible for all aspects of employee management, including recruiting, hiring, training, and supervising staff, as well as setting pay rates and managing wages and benefits. Scenthound emphasizes that it is not a co-employer. Scenthound also provides initial staff training by sending two members of its training team to the Scenter before opening.