FRANCHISE OPPORTUNITIES
Wag N' Wash Franchise Costs & Fees
Wag N’ Wash Franchise Costs & Fees
Year Business Began: 2005
Franchising Since: 2006
Headquarters: Centennial, Colorado
Estimated Number of Units: 20
Franchise Description: Healthy Pet Partners, LLC (HPP) is the franchisor. The franchisor offers franchises for the use of its “Wag N Wash” trademarks, trade names, service marks and logos for the operation of Wag N Wash (WNW) businesses. Wag N Wash businesses provide self-service pet bathing, professional bathing services and the retail sale of pet supplies, pet accessories, pet bakery items, and pet deli items.
Training Overview: Franchisees and up to two of their managers must attend and successfully complete a management training program, which is held at the franchisor’s headquarters in Colorado Springs, Colorado or any other location it may designate. The Initial Training Program will consist of two phases, and franchisees must travel to the franchisor’s headquarters in Colorado two separate times, once for each phase. The length of training for the first phase of training (Phase 1) shall be a minimum of seven days at headquarters. The length of training for the second phase of training (Phase 2) will be a minimum of 10 days at headquarters. From time to time, the franchisor may require that franchisees, designated managers, and other employees attend system-wide refresher or additional training courses. Some of these courses may be optional, while others may be required. The franchisor also has a corporate trainer that is available to assist franchisees with food, product safety, and sales training.
Territory Granted: Franchisees will be granted an exclusive territory (Protected Territory) in which to establish their WNW business and sell the products and services. The franchisor will not establish another franchise or company or affiliate-owned center using the marks within the Protected Territory. The franchisor will negotiate the specific size of the Protected Territory based upon the population density, and it will use commercially reasonable efforts to grant only one license to a franchisee for every 100,000 people (or corresponding incremental portions) in a designated geographical area, but the actual size of the Protected Territory will depend upon the population density in the franchisee’s area. The Protected Territory may include less than 100,000 people if the WNW Business is located in an area with high non-residential traffic.
Obligations and Restrictions: The WNW franchise shall be managed by franchisees, or if an entity, by one of the owners who is a natural person with at least a 33% ownership interest and voting power in the entity. Under certain circumstances the franchisor may allow franchisees to appoint a designated manager (Designated Manager) to supervise the day-to-day operations of the WNW franchise. The Designated Manager must successfully complete the training program. Franchisees are required to offer for sale all products and services that have been approved and specified by the franchisor in the Brand Standards Manual and any updates that are incorporated in the Brand Standards Manual from time to time. Franchisees may not perform any services or offer or sell any products that the franchisor has not authorized or that it may disapprove in writing at any time.
Term of Agreement and Renewal: The length of the initial franchise term is 10 years. If franchisees are in good standing and they meet other requirements, they may enter into one successor term of 10 years.
Financial Assistance: The franchisor does not offer direct or indirect financing to franchisees. The franchisor does not guarantee a franchisee’s note, lease, or other obligation.
Investment Tables:
| Name of Fee | Low | High |
|---|---|---|
| Initial Franchise Fee | $45,000 | $45,000 |
| Training Expenses | $1,000 | $5,000 |
| Initial Training for Additional Person(s)/Extended Training |
$0 |
$1,500 |
| Real Estate Leasing for 3 Months | $25,000 | $45,000 |
| Leasehold Improvements | $265,000 | $409,500 |
| Architectural/Engineering Fees | $5,000 | $20,000 |
| Site Opening Assistance | $30,000 | $30,000 |
| Furniture, Fixtures and Equipment | $40,000 | $85,000 |
| Signage | $3,000 | $18,000 |
| POS Computer Hardware | $2,000 | $4,000 |
| POS Software License and Maintenance Fee (1st Year) | $900 | $900 |
| Inventory and Supplies | $30,000 | $50,000 |
| Store Use Equipment and Supplies, Office Supplies, Bakery Supplies | $2,000 | $8,000 |
| Logo Gear and Uniforms | $1,000 | $2,000 |
| Utility, Lease, and Security Deposits | $5,000 | $20,000 |
| Initial Advertising | $2,500 | $7,000 |
| Insurance Premiums | $1,500 | $3,000 |
| Licenses and Permits | $500 | $2,500 |
| Alarm/Surveillance System | $0 | $1,000 |
| Internet/Phone Lines | $200 | $1,000 |
| In-Store Signage | $1,000 | $2,000 |
| Technology Fee – First 3 months | $1,500 | $1,500 |
| Music Source Start-Up Equipment | $1,350 | $1,350 |
| Professional Expenses | $1,500 | $8,000 |
| Miscellaneous Opening Costs | $3,000 | $5,000 |
| Additional Funds – 3 months | $10,000 | $60,000 |
| ESTIMATED TOTAL | $477,950 | $836,250 |
| Type of Fee | Amount |
|---|---|
| Royalty Fee | 3% on weekly Gross Revenues for first 6 months of operation, 4% on weekly Gross Revenues for months 7-12, and 6% of Gross Revenues per week for every month after month 12. |
| Brand Building Fund Contribution | 1.5% of Gross Revenue per month. |
| Local Advertising Payment | The greater of 3% of the Gross Revenues or $2,500 per month. |
| Local and Regional Advertising Cooperatives | Established by cooperative members (up to 3% of Gross Revenues) |
| Unauthorized Advertising Fee | $500 per occurrence. |
| Real Estate Leasing | Market rates. |
| Insurance | Reimbursement of the franchisor’s costs plus a 20% administration charge. |
| Initial Training for Additional Person(s) | The current fee (currently $1,000 per person, plus the cost of travel, lodging, meals, and personal expenses per trip). |
| Training for New Managing Owner or Designated Manager | Then-current tuition (currently $2,000, plus $400 per day for training at the franchisee’s center). |
| Convention Fee | Then-current fee (currently estimated to be $2,000 for up to two attendees; and $1,000 for each additional attendee), plus expenses; franchisees will receive a $500 credit toward future accrued Royalty Fees if at least one of their required participants attends the convention but only if the franchisor chooses to charge the fee. |
| Supplier and Product Evaluation Fee | Costs of inspection (estimated to be approximately $100 to $500). |
| Design Fee | $250 per design. |
| Brand Standards Manual Replacement Fee | Then-current replacement charge (currently $500). |
| Customer Issue Resolution | Reasonable costs the franchisor incurs for responding to a customer complaint, which varies. |
| Payment Service Fee | Up to 4% of total charge. |
| Late Payment Fee | $100 per occurrence, plus the lesser of 18% per annum or the highest commercial contract interest rate permitted by law. |
| Non-Sufficient Funds Fee | $100 per occurrence. |
| Failure to Submit Required Financial Report Fine | $100 per occurrence and $100 per week. |
| Audit Expenses | Cost of audit and inspection, any understated amounts, interest equal to the lesser of 18% per annum or the highest rate allowed by law and any related accounting and legal expenses (the franchisor estimates this cost to be between $1,000 and $12,000). |
| Indemnification | All amounts (including attorney fees) incurred by the franchisor or otherwise required to be paid. |
| Taxes | Varies |
| Management Fee | 3% of Gross Revenues. |
| Professional Fees and Expenses | Varies under circumstances, plus an administrative fee of $250 per day. |
| Successor Franchise Fee | 50% of the then-current Initial Franchise Fee. |
| Transfer Fee | 50% of the then-current Initial Franchise Fee. |
| Relocation | Then-current fee (currently $5,000). |
| Technology Fee | Then-current fee (currently $500 per month). |
| De-identification | Will vary under circumstances. |
| Liquidated Damages | Varies under the circumstances; the amount will not be less than $30,000. |
| Broker Fees | The actual cost of the brokerage commissions, finder’s fees, or similar charges. |
The above information has been compiled from the FDD of Wag N’ Wash. Year of FDD: 2019.
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