When brothers turned business partners Jason and Steven Parker first opened K9 Resorts Daycare & Luxury Hotel, it was because they were passionate about pet care. Having been denied a family dog while they were growing up, the brothers decided that they could spend more time with man’s best friend if they started a dog walking business. However, as soon as they got involved in the industry, they knew that there was more to the industry than a passion for pets. Even at a young age, the Parker brothers recognized the potential for impressive profit.
After realizing how lucrative the pet care industry could be, the Parkers launched what’s now the emerging franchise concept, K9 Resorts. And it’s clear that the brand is tapping into the profit and revenue potential behind its business model. As stated in Item 19 of its most recent Franchise Disclosure Document (FDD), for the calendar year ending in 2016, K9 Resorts’ affiliate location reported a gross revenue of $1,617,374. In that same calendar year, the brand’s franchised locations also reported average earnings before interest, taxes, depreciation and amortization (EBITA) of $350,533.
According to co-founder and co-CEO Jason Parker, it’s numbers like those that demonstrate how successful K9 Resorts franchisees can be.
He said, “Our financial performance is uncommon in the franchising industry. Based on our numbers, I’m confident saying that K9 Resorts is the most successful brick and mortar pet care concept out there. The type of revenue and income that we’re seeing really speaks for the brand itself. Because we offer such a high-quality service, we’re able to charge a premium for it. That then leads to high margins and high profitability for our franchise owners.”
In order to help position its franchisees for success, K9 Resorts’ system is designed to include a number of competitive advantages. For starters, the brand ensures that all of its local owners receive both initial and ongoing training to ensure that they understand its proven business model. Another competitive advantage for franchisees is the fact that K9 Resorts units don’t rely on minimum wage employees like fast food chains. Because the brand’s employees are being paid above those minimum wage standards, they’re more likely to stick with the job longer, ultimately making those positions easier for franchisees to manage.
K9 Resorts also helps with financial assistance for those looking to sign on and become a franchisee. While startup costs range from $915,655 to $1,292,859, the brand workers with preferred lenders who are willing to lend up to 75 percent of the total initial investment. However, the biggest competitive advantage that K9 Resorts offers its franchisees is a ground level entry point to one of the franchising industry’s most recession-resistant industries: pet care.
“The pet care industry is continuing to get bigger and bigger. Since Steven and I first started out, we’ve been keeping track of the progress and growth that we’re seeing across the board. This industry is the only one that I know of that has experienced consistent, double-digit, year-over-year growth for the past 25 years. This business as recession resistant as any industry can be,” said Parker. “By continuing to see growth even in times of downturn or economic recession, we’re confident that the K9 Resorts model will be one that thrives in the long-term. That’s why we’re excited to continue welcoming new franchisees into our system and setting them up for success that’s meant to last.”
For complete information about K9 Resorts’ financial performance, please refer to Item 19 in the brand’s Franchise Disclosure Document.