Hounds Town USA Launches Strategic Growth Plan to Grow to 30 Units in Five Years

When Mike Gould served as the canine handler for the New York Police Department, he never would have imagined that his career path would take him to owning a doggie daycare franchise. During his time working with dogs both in the NYPD and as Commanding Officer of the Nassau County Police Department canine unit, he would often get requests from friends and family to care for their animals. In 2001, he was deployed to Naples to oversee the Military Working Dog (MWD) program after the September 11th terrorist attacks, and when he returned, he retired and opened Hounds Town USA in Port Jefferson, New York. Since then, Gould and his team have opened five more locations, with four more in development, and created a strategic plan to grow the brand’s footprint through franchising.

“After opening our first few locations, we realized that we had something special that sets us apart from other doggie daycare brands. The foundation of our brand is based on Mike's knowledge and experience, which we’ve operationalized to pass on to our franchise owners and staff members,” said Jackie Bondanza, who began working for Hounds Town USA in 2013 and became President and General Operations Manager in 2015. “We spent more than 10 years refining our systems, doubling the size of the operations manual and developing a strategy to grow through franchising.”

The franchisees for the first two locations were a former employee, and two former employees who partnered with a former customer, which speaks to the strength of the system and the belief in the brand of those who are close to it.

“We’ve worked with these franchisees for many years, and it means a lot to us to be able to grow the brand with people we trust implicitly and to help them achieve their dreams,” said Gould. “It speaks volumes about our brand -- and our growth potential -- that the first franchisees to come on board were employees and a former customer.”

Because of Gould’s background and experience, Hounds Town USA welcomes dogs of all breeds, including the “bully breeds” that are typically turned away from doggie daycares: pit bulls, Doberman pinschers and Rottweilers. Using knowledge about dog behavior to find a spot for every dog to play in a safe environment is a cornerstone of the Hounds Town USA brand, and a true differentiator in the category.

“20 percent of the dog population is made up of breeds that are typically discriminated against, and we make it our mission to find a spot for them at Hounds Town. Owners of these breeds will come to Hounds Town after being rejected from other doggie daycares right at the door, and we’ll work with the dog to find a place for them in our towns. Because our employees and franchisees have more knowledge of dog behavior, and we don’t overpopulate our groups, we’re able to get them into groups and they’re completely fine,” said Bondanza.

In addition to Gould’s extensive experience and the brand’s top-notch operational playbook, another differentiator in the category is the low-cost offering, both to customers and franchisees. Bondanza notes that Hounds Town USA charges one flat fee, and doesn’t offer a la carte services, unlike other brands in the space.

“Our customers are looking for a safe, welcoming environment for their dogs to enjoy while they are at work; they’re not looking for individual suites with heated floors and 48-inch televisions for their pets. Many other concepts in the space are overdoing it and focusing on what humans want, not the needs of the dog,” said Bondanza. “We don’t take advantage of people’s emotions -- we’re not going to charge owners extra to give their dog a pill, and we are happy to pet the dogs for free. Upcharging is not something we get into and our customers really appreciate that. Our centers are built from the dog’s perspective at 18 inches off the ground. Because of that, our buildout costs less and we’re able to offer franchisees a better cost of entry.”

The low cost of entry, straightforward business model and high average unit volume make Hounds Town USA a standout brand in the space.

“The numbers don’t lie. Why would you pay 75 percent more for another brand that has only a slightly higher AUV? We’ve kept our business model simple and our operating costs low, which offers incredible value to our franchisees and our customers,” said Gould.

Building on the solid foundation, Gould and Bondanza have created a strategic plan to continue partnering with passionate, business-savvy dog lovers to grow the brand’s footprint in their local communities. They’re planning to close three more deals this year to get to 12 units by the end of the year, including a franchise set to open in Bergen County, New Jersey in August and another set to open in Garden City, New York in the fall. In 2019, they plan to add five more units, and then grow up to 30 units over the next five years.

“We’re not looking to grow quickly; we’re looking to grow in a smart way, so we’re going to be selective about who we bring into the system,” said Bondanza. “Since we care for people’s pets, who most consider to be an extension of their family, we operate an emotional business so we are obligated to find the right people to be franchise owners.”

Prospective franchisees can expect startup costs to range from $175,300 and $249,000, lower than the average pet franchise investment. To learn more, please visit http://www.houndstownfranchise.com.