Scenthound Is Revolutionizing the Pet Care Industry with Responsible Franchising

Tim Vogel, CEO of Scenthound, turned to franchising to scale his business. He is driven by a love for the entrepreneurial journey and a commitment to responsible franchising.

Vogel recently appeared on the “Meet the Zor” podcast, where he discussed the importance  of responsible franchising and described just how Scenthound is transforming the pet care industry with 1851 Franchise Founder and Publisher Nick Powills.

Vogel’s involvement with the Entrepreneurs’ Organization, particularly its Accelerator program, played a pivotal role in shaping his franchising decision. His passion for helping others on their entrepreneurial journeys made franchising an appealing avenue, as well. 

“Franchising was just a really cool way to help people take the entrepreneurial journey in a really de-risked kind of environment,” he said.

Scenthound’s unique value proposition lies in its focus on dog health and wellness, positioning itself between grooming and veterinary care. This innovative approach necessitated rapid scaling to establish brand recognition and category ownership. 

“[W]e are creating a new category in preventative routine hygiene,” Vogel said, “and franchising helps us rapidly scale and own this category.”

The decision to franchise was also influenced by the need for local ownership to ensure personalized care for pets. Vogel believed that having franchisees with a vested interest in their local markets would enhance the level of attention and care provided. Additionally, franchising offered a viable funding source to support rapid expansion, enabling Scenthound to collect extensive health data on dogs, which is essential for delivering personalized services and improving pet health outcomes.

As of August 2023, Scenthound has successfully scaled to 103 locations with around 75 franchise owners. This growth is a testament to the deliberate and well-executed franchising strategy Vogel and his team employed, positioning Scenthound as a responsible and innovative leader in the pet care industry.

A transcript of Vogel’s interview with Powills has been presented below. It has been edited for clarity, brevity and style.

Nick Powills: How did you accidentally fall into franchising? 

Tim Vogel: Yeah, so there was nothing accidental about us finding franchising. It was actually exceptionally deliberate. We looked at every possible scaling mechanism before deciding on franchising. There were many decision points we went through before making that choice. I’m happy to go through those if that would be helpful.

Powills: Yeah, totally do that. And is this before you decided on franchising or before you even created the business? 

Vogel: No, it was before we decided on franchising. We created the business, which is another story, from where we started to where we ended up. Once I believed I had a scalable model — and we had opened five locations and done various tests — the next step was figuring out what to do with it. We could have opened another five and lived comfortably, or we could figure out how to scale. Franchising was one of the options, and I ultimately chose it for several reasons.

Powills: Can you explain some of those reasons? 

Vogel: One reason is that I love the entrepreneurial journey. I was involved in an organization called Entrepreneurs’ Organization, where I helped early-stage business owners scale their businesses. Franchising allowed me to help people take the entrepreneurial journey in a de-risked environment. Another reason is that having someone who owns the business in the local market provides greater attention and care for pets. A franchisee on the ground is crucial for this. Additionally, franchising is a way to rapidly scale and serves as a funding source. We collect a lot of health data from dogs, which allows us to personalize and curate solutions for dog parents. Scaling rapidly helps us deliver better value and service. Lastly, we are creating a new category in preventive routine hygiene, and franchising helps us rapidly scale and own this category.

Powills: Where’s the business at today? How many units do you have? 

Vogel: We opened our first unit in December 2020. Today, we’re opening our 103rd location, and it’s August 2nd right now.

Powills: How many different franchise owners do you have? 

Vogel: We have around 75 to 78 franchise owners. There’s still opportunity within the system for more growth.

Powills: You have created a roadmap with five corporate units. How do you get your franchisees to think through scale? 

Vogel: Absolutely. I’m proud to say we have three franchisees who have opened their fifth location and others who have opened their fourth. As we go from emerging to regional, we attract more experienced franchisees. Some of our partners are scaling for the first time, while others have been multi-unit owners in other brands.

Powills: What has met and missed your expectations about franchising? 

Vogel: We were cautious coming into the franchise world due to the range of actors in the space. We were deliberate in our approach and aligned it with our values. The International Franchise Association (IFA) and conferences provided great education, helping us understand the landscape. The responsible franchising movement is crucial, as it addresses the need for ethical practices. Private equity has impacted franchising, sometimes misaligning interests. However, the industry is adapting, and private equity is becoming more cautious about franchisee success and support.

Powills: What’s the vision as you go forward? 

Vogel: We aim to serve the dog parent better and expand our ecosystem. We want to create the “easy button” for dog parents, offering more services to help dogs live happier, healthier lives. We’ve focused on infrastructure, including the customer, employee and franchisee journeys. Now, we’re ready to scale, find great partners and support them. We also plan to hyper-personalize and curate better solutions for dog parents.

Powills: What about the coaching component for franchisees? 

Vogel: It’s more than coaching; it involves tools. We recently launched a tool for trial and membership conversion, providing automation and dashboards. We have an effort score to track follow-ups and conversions, ensuring franchisees are responsive and effective. Combining tools with coaching helps maximize the model’s effectiveness.

Powills: Any final thoughts? 

Vogel: Building a strong foundation has been key. By focusing on infrastructure and responsible growth, we can support our franchisees and scale effectively. I’m excited to see where our journey goes and grateful for the opportunity to share our story.

To watch the full interview, click here.

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.