Risk Score
Pending analysis
Investment Range
$24,275 - $121,350
Franchise Fee
$10,000
Total US Locations
159
Business Summary
Sit Means Sit Franchise, Inc. offers franchises for a dog training business. Franchisees provide dog training, behavior modification, and consulting services to dog owners. They may operate using vehicles to conduct training in public locations, such as parks or pet stores, or from a formal training facility. The business uses the "Sit Means Sit" system and standards.
Corporate History
Sit Means Sit Franchise, Inc. was incorporated in Nevada on January 20, 2009, and began offering franchises for "Sit Means Sit" dog training businesses in February 2009. Its affiliate, Sit Means Sit, Inc. (SMSI), was incorporated in Nevada in January 2006 and has operated a "Sit Means Sit" business since March 2006. From March 2006 to November 2008, SMSI licensed others to operate similar businesses under different terms than the current franchise agreements. Sit Means Sit Franchise, Inc. does not operate its own businesses and primarily focuses on franchising.
Financial Overview
Investment Range
$24,275 - $121,350
Franchise Fee (Low)
$10,000
Franchise Fee (High)
$25,000
Royalty %
9%
Equipment Costs (Low)
$700
Equipment Costs (High)
$66,500
Working Capital
$6,900
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
The franchisor's financial condition calls into question Sit Means Sit Franchise, Inc.'s financial ability to provide services and support to franchisees. The most recent unaudited financial statements for Sit Means Sit Franchise, Inc. (as of June 30, 2024) and prior audited statements are provided, but prospective franchisees are advised to review these carefully.
Financing Details
Sit Means Sit Franchise, Inc. does not offer any direct or indirect financing. Franchisees must arrange their own funding, and Sit Means Sit Franchise, Inc. does not guarantee any loans or other obligations.
Performance Metrics
Total US Locations
159
Franchised Units
159
Corporate Units
0
Avg Square Footage
2,250
Franchising Since
2009
Legal & Compliance Analysis
Recent Litigation
Yes
Bankruptcy
No
Litigation Count
3
Litigation Summary
Sit Means Sit Franchise, Inc. has disclosed three legal actions. One recent lawsuit, filed in September 2023, was against former franchisees in Texas and North Carolina who failed to pay amounts owed and continued operating in violation of post-termination obligations, allegedly endangering animals. Sit Means Sit Franchise, Inc. obtained a preliminary injunction in November 2023 and a default judgment in June 2024, including liquidated damages and attorney fees, and permanently enjoining the former franchisees from using its marks and competing. The other two cases are older consent orders. In September 2012, Sit Means Sit Franchise, Inc. and its affiliate, Sit Means Sit, Inc., entered a consent order with the Maryland Securities Division. This acknowledged that licenses issued by the affiliate constituted "franchises" under Maryland law, and the affiliate was not registered. Sit Means Sit Franchise, Inc. also admitted offering a franchise in Maryland without being registered. The company agreed to cease violations, implement compliance procedures, and pay a $2,000 civil penalty. In September 2009, its affiliate, Sit Means Sit, Inc., entered a consent order with the Minnesota Department of Commerce, paying a $1,000 civil penalty for selling an unregistered franchise and agreeing to comply with Minnesota franchise law.
Bankruptcy History
Sit Means Sit Franchise, Inc. has no bankruptcy history to report.
Agreement Terms
Initial Term
10 years
Renewal Term
10 years
Renewal Conditions
To renew, Sit Means Sit Franchise, Inc. franchisees must provide written notice between 9 and 12 months before their Franchise Agreement expires. They must be in full compliance with all obligations under their initial Franchise Agreement, the Brand Standards Manual, and all other agreements with Sit Means Sit Franchise, Inc., its affiliates, and suppliers. Franchisees must also meet the franchisor's then-current qualification, certification, and training requirements, and all trainers must hold a valid driver's license for the state where their Trade Area is located. They should not have committed three or more material breaches within any 12-month period during the initial term. If the franchisee offers boarding services, they must not have received more than three complaints related to the health or safety of animals in their care. Finally, franchisees must sign a new successor franchise agreement, which may have different terms, and execute a general release of any claims against Sit Means Sit Franchise, Inc.
Training & Support Program
Franchisor Assistance
Sit Means Sit Franchise, Inc. provides pre-opening assistance, including reviewing and accepting proposed training facility sites (if chosen) and offering guidelines for vehicles. It provides an Initial Training Program for one individual at no extra cost, covering the Sit Means Sit system, dog training techniques, operations, marketing, and philosophy, along with an online Brand Standards Manual. After opening, Sit Means Sit Franchise, Inc. offers ongoing advice and assistance from headquarters staff regarding technical and sales support and general operational guidance. It periodically designates required products and services, approves franchisee-created advertising materials, and conducts mandatory re-certification training every three years. Optional assistance may include operating an Intranet for communication, coordinating the System's Internet presence (website, social media), designating National Accounts, holding semi-annual owners-only meetings, operating a call center for client referrals, offering additional optional services like accounting support, and consulting with a Franchise Working Group composed of franchisees.
Initial Training Hours
147
Training Location
A Sit Means Sit® franchisee-owned training facility designated by the franchisor
Ongoing Support
After opening, Sit Means Sit Franchise, Inc. provides ongoing advice and assistance to franchisees upon reasonable request, covering technical and sales support and general operational guidance via telephone, electronic mail, or other means. Franchisees are required to attend ongoing training programs, including re-certification training every three years, without an additional fee (though travel expenses are the franchisee's responsibility). Sit Means Sit Franchise, Inc. may also establish an Intranet for internal communication, coordinate the System's overall Internet presence (including websites and social media), designate National Accounts, conduct semi-annual owners-only meetings for a fee, and offer sponsored monthly coaching sessions. Additionally, it provides guidance for pricing products and services.
Franchise Requirements
Ideal Candidate Profile
Sit Means Sit Franchise, Inc. seeks franchisees, or a designated responsible individual, who can pass a criminal background check. The designated individual must commit to full-time involvement, dedicating all efforts solely to the business. This individual must also meet the franchisor's educational, experience, financial, and other reasonable criteria, and successfully complete the Initial Training Program. The franchisor looks for candidates with good moral character, satisfactory credit ratings, acceptable business qualifications, and the ability to obtain all necessary licenses and permits.
Industry Experience Required
No
Management Experience Required
No
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
Hybrid
Owner Participation
Full-Time
Territory Type
Exclusive
Territory Size Requirements
Sit Means Sit Franchise, Inc. defines its franchise territories, called Trade Areas, to contain a "dog population" of at least 50,000. This "dog population" is calculated using United States Census data for humans. The formula involves dividing the total human population by 2.5 to get the "household population," then multiplying that by 0.372 to estimate "dog-owning households," and finally multiplying by 1.7 to arrive at the "dog population." The precise boundaries of each Trade Area are determined by factors such as population density, the number of dogs in the area, the demand for dog training, and existing territorial rights of other franchisees.
Staffing Notes
Sit Means Sit Franchise, Inc. requires franchisees to employ at least one Authorized Trainer who has successfully completed the Initial Training Program and maintains all required certifications. All employees who conduct dog training must be trained according to the Brand Standards Manual and to the franchisor's satisfaction. The business must be supervised by an Authorized Trainer. Franchisees must maintain the number of trained employees and dog trainers deemed necessary by Sit Means Sit Franchise, Inc. to adequately operate the business. The franchisor also requires a designated individual, who may or may not be an owner, to be primarily responsible for supervising the business and communicating with the franchisor.