Franchise Deep Dive: Hounds Town USA’s Franchise Costs, Fees, Profit and Data

The Hounds Town USA franchise offers a straightforward approach to pet care at a relatively low investment cost for franchisees.

By Victoria CampisiStaff Writer

10:10AM • 03/14/23

LAST UPDATED: 1/2024

FRANCHISE WEBSITE: https://www.houndstownfranchise.com/

NUMBER OF LOCATIONS: 55

REPORTED COST TO GET IN: $457,200 to $771,900

REPORTED ROI (Item 19): $438,133 (Average Net Operating Income)

For over 20 years, Hounds Town USA has been home to the happiest dogs on Earth. Founded in 2001 by a former NYPD K-9 Unit Handler and Commanding Officer of the Nassau County Police Department, Hounds Town USA offers an affordable, straightforward approach to pet care.

The interactive doggie daycare offers overnight boarding, pet grooming spa and other pet-centric amenities. Its no-frills facilities are built based upon the needs of the dogs themselves, not to impress their humans. This allows the brand to keep buildout costs relatively low, while a simple business strategy provides franchisees with impressive economic returns.

How Many Locations Are There?

There are currently 55 Hounds Town USA locations. In 2023, the franchise was ranked within the top 1,000 on the 2023 Inc. 5000, an annual list of the fastest-growing private companies in America. The year prior, Hounds Town USA opened 18 towns for a total of 39 open, driving an 86% increase in stores open over 2021.

What Is the Business Model?

Features of the Hounds Town USA business model include:

Lower Investment: By utilizing simple, cost-effective and dog-friendly materials, Hounds Town USA allows franchisees to open their businesses starting at $358,900.
Impressive Revenue: In 2021, Average Gross Sales for locations open five years or more was $1,082,411 with a Net Operating Profit of $342,257, while the Average Gross Sales of locations open one year or more was $632,144 with a Net Operating Profit of $142,004.
Simple Operations: At Hounds Town, the build-out is simple. It has fairly low overhead, and minimal staffing keeps the business model simple. Owners can run their locations with a 15:1 dog-to-human ratio. Since the company is closed to the public from 12:00 p.m. to 2:00 p.m. each day, there is no need for additional staff to speak with customers.
Semi-Absentee Option: Most of our owners operate as semi-absentee, allowing them to focus on pursuing other passions.
Canine Expertise: Founder Michael S. Gould has almost 40 years of direct canine experience that he passes along to all new Hounds Town Owners. The concept is modeled after childcare solutions rather than other doggie daycare options.
Results Driven Marketing Support: The brand has developed a three-tiered marketing plan designed specifically to ensure that all new owners do not have to worry about having customers when they open. By cultivating a customer base primarily through Facebook groups, the brand has seen the average number of new dog evaluations in the first 10 days of opening increase 133% year over year.
Hounds Town Charities: Each Hounds Town USA franchise location has partnered with local charities, rescues and shelters to offer discounted doggie daycare, boarding and other services to dogs waiting for their “furever” homes.

How Much Can Hounds Town USA Franchise Owners Make?

In 2022, Hounds Town USA’s Average Gross Profit for locations open five years or more was $905,531 with an Average Net Operating Income of $438,133.

How Much Does It Cost To Open a Hounds Town USA?

The investment range to open a Hounds Town USA is $457,200 to $771,900. Below is a breakdown of the costs:

Initial Franchise Fee: $49,000
Launch Fee: $30,000
Pre-Opening Marketing Package: $15,000
Microsite and Social Media Setup: $300
Financial Training Access: $300
Travel Expenses Related to Training: $3,000–$10,000
Pre-Opening Lease Payments: $0–$24,000
Furniture, Fixtures and Equipment: $30,500–$43,000
Leasehold Improvements: $225,000–$388,000
Architect Fees: $6,500–$15,000
Site Survey: $1,500–$4,000
Concept Design: $2,500–$6,000
Security and Utility Deposits: $7,000–$10,000
Opening Inventory: $500–$1,000
Post-Opening Marketing: $25,000
Business Licenses and Permits: $200–$2,500
Fire Alarm System: $10,000–$15,000
Logo Gear and Uniforms: $1,000–3,000
Signage: $3,000–$8,000
Insurance: $2,100–$4,000
Computer Hardware: $0–$2,500
POS Setup Fee: $500
POS Fee - 3 months: $900
Closed-Circuit Camera Systems: $10,000–$20,000
Professional Fees: $2,500–$6,000
Vehicle Lease, Signage, Insurance: $0–$8,000
Bookkeeping Services: $900
Additional Funds - 3 Months: $30,000–$80,000
TOTAL ESTIMATED INITIAL INVESTMENT: $457,200–$771,900

What Is the Franchise Fee for Hounds Town USA?

The franchise fee for a single Hounds Town USA is $49,000.

Who Are the Leaders of Hounds Town USA?

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Every great franchisee had help buying a franchise. Want to learn more about how 1851 helps franchisees find the right franchise opportunity? Visit www.1851growthclub.com and start your journey.

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