Franchise Deep Dive: Dogtopia’s Franchise Costs, Fees, Profit and Data

Here’s what you need to know about one of the fastest growing pet service brands in the country before signing a franchise agreement.

By Aryanna Cannoy1851 Franchise Contributor

7:07AM • 03/29/23

Dogtopia has made a name for itself as one of the leading pet services franchises in the United States. And with an expectation for pet care sales to grow to $275 billion in 2030, now might be time to begin franchising in the pet service industry. But what can prospective franchisees expect if they sign a franchise agreement with Dogtopia?

How Many Dogtopia Locations Are There?

According to Dogtopia’s franchise website, there are over 220 operating locations in the United States and Canada. The brand has grown significantly since its inception in 2002 in Virginia. Dogtopia’s website states that there are over 350 locations sold and in development, and that the brand is on track to reach over 400 locations by 2025.

What Is the Dogtopia Business Model?

The Dogtopia business model requires a physical location and, according to the brand’s website, allows for multiple revenue streams. Dogtopia’s typically offered services include:

Dog daycare
Overnight stays
Dog spa services
Dog training (available at some locations)
Dog grooming (available at some locations)
Ancillary revenue (part of the wellness ecosystem)

Dogtopia is best known for its dog daycare services, with customers normally bringing their pets in two to three days a week, providing a steady stream of revenue. Each franchise location is to provide an open-play environment with protective rubber floors to ease the impact of the dogs’ joints. Clients have the option to purchase single-day daycare visits, weekly enrollment plans and overnight boarding.

How Much Can Dogtopia Franchise Owners Make?

Dogtopia’s 2022 Franchise Disclosure Document provides financial performance representations of 127 of the 166 Dogtopia locations that were opened in 2021. The remaining 39 were not eligible to submit a financial performance for this document because they were not open the entire fiscal year. The average gross sales of those qualifying locations amounted to $781,286.

The financial representations of all 108 qualifying franchised Dogtopia locations in the 2021 fiscal year are below:

Average Gross Sales: $767,302
Highest Gross Sales: $1,354,239
Lowest Gross Sales: $282,326
Median Gross Sales: $745,241

How Much Does It Cost to Open a Dogtopia?

The estimated initial cost to open and operate a single Dogtopia franchise, according to the brand’s 2022 Franchise Disclosure Document, ranges from $688,312 to $1,806,803. The breakdown of that cost is as follows:

Initial Franchise Fee: $40,095–$49,500
Initial Training Fee: $0–$2,000
Food, Lodging and Travel (three to four people while training): $1,000–$12,000
Utility and Security Deposits: $5,500–$17,500
Real Estate and Facility Coordination Fee: $35,000–$44,500
Three Months’ Rent (three months after opening): $17,400–$45,000
Leasehold Improvements: $409,792–$1,169,923
Furniture, Furnishings and Equipment: $29,500–$87,000
Exterior Signage and Graphics: $10,000–$45,000
Interior Signage and Graphics: $15,000–$35,000
Microsite and Social Media Account Setup Fee: $500
Technology Systems: $8,550–$27,600
Technology Fees (pre-opening period): $875–$2,580
Scent Air System: $500–$2,000
Initial Supply of Inventory and Operating Supplies: $7,900–$10,600
Grand Opening Marketing: $15,000–$30,000
Business Opening Marketing: $2,000–$44,000
Insurance (three months’ premium): $1,200–$3,000
Professional Fees: $28,500–$78,500
Additional Funds (three months after opening): $60,000–$100,000

Dogtopia’s 2022 FDD also calculates the initial investment for a franchisee who is signing an area development agreement. This agreement assumes the commitment of three to five centers. The development fee ranges from $138,600 to $227,700.

What Is the Franchise Fee for Dogtopia?

The initial franchise fee to operate a single Dogtopia franchise is $49,500 and is due upon signing the Franchise Agreement. However, there are two discounts available for those potential franchisees who qualify. Those discounts are:

Multi-Unit Discount: Existing Dogtopia franchisees who are purchasing an additional franchised location can receive a discount of 10%.
Veteran Discount: As a member of the International Franchise Association (IFA), Dogtopia participates in the VetFran Program. Qualified veterans of the U.S. Armed Forces can receive a 10% discount on the initial franchise fee and an additional 10% discount on an additional franchise location.