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Buying a franchise is a big decision. It is important to make it an informed one. Knowing the right questions to ask is a good place to start when beginning any validation process. <a href="https://1851franchise.com/details/2703096/Getting-to-Know-a-Franchise-Brand-by-Looking-Through-Its-Item-20">Franchise Disclosure Document (FDD) Item 20</a> contains valuable information savvy franchise buyers can use to determine the health and important practices of a brand they are considering.

A quick glance will provide growth rates, transfers and unit closure information. Delving deeper into this information leads to critical benchmarking statistics like <a href="http://www.sportclipsfranchise.com/blog/2017/october/continuity-rate-one-of-the-most-important-number/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=going-deeper-in-validation-using-item-20-insights-to-improve-your-validation-insights-2704964" target="_blank" rel="nofollow">continuity</a> and &ldquo;churn rates&rdquo;. Through critical analysis of the data in Item 20, a vivid depiction of the franchisor&rsquo;s &ldquo;personality&rdquo;, and its relationships with its franchisees begins to emerge.

By understanding what these numbers mean and using the derived information to guide your validation, you will be able to ask the right questions, leading to a decision aligned with your goals. &nbsp;&nbsp;

In part one of this article, we will look at the five core charts included in Item 20 and highlight key insights to further probe in the validation process. In <a href="http://www.sportclipsfranchise.com/blog/2017/december/part-2-going-deeper-in-validation-how-item-20-in/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=going-deeper-in-validation-using-item-20-insights-to-improve-your-validation-insights-2704964#~x8N918" target="_blank" rel="nofollow">part two of this article</a>, published on the Sport Clips Franchise blog, we will use the specific data included in Sport Clips&rsquo; Item 20 to show how this information can be applied practically.

&nbsp;

Table No. 1 - System Wide Outlet Summary

This table shows the net change in franchised and company owned units over a three-year period. Growth is obviously a good sign. While declining unit counts are a strong indication of unit performance issues or larger system troubles, how the company is growing is just as important. It is important to look for trends here. Is the growth steady or are there wild fluctuations in unit openings? Is the pace of growth increasing or decreasing? Does the franchisor seem to be more focused on growing franchised locations or company-owned locations? Use these observations to formulate specific questions you want to ask franchisees. For example:

&ldquo;Why was there such a gap in openings in 2015 vs 2016?&rdquo;

&ldquo;Are existing franchisees opening additional units or is most of the growth coming from external sources?&rdquo;

&ldquo;Has operational support suffered during peaks in the growth trend?&rdquo;

There are additional important insights in the company-owned unit data, but we will return to that later when we examine Table No. 4 - Status of Company-Owned Outlets.

&nbsp;

Table No.&nbsp;2 - Transfers of Outlets from Franchisees to New Owners

Regulators have come up with unflattering terms such as &ldquo;churn rate&rdquo; to measure the activity of transfers. While commonly seen as negative, transfers should be given close consideration. There are many valid reasons a franchisee may decide to transfer their unit to another party that are actually positive. This generally means franchisees who want to sell their units are able to but most franchisees are happy to hold onto and continue to grow their investments. For this reason, potential franchise buyers should be wary of transfer rates that are either too high, or too low. Experience tells us that a rate between four and eight percent of the total number of units in the network represents a healthy balance.

It is also important to note that this table breaks down the transfer information by state. Do the same calculations here. If the network transfer rate is six percent, but the state you are interested in is hovering around 15 percent, make sure to find out why.

&ldquo;Why do you feel so many franchisees are looking to exit the system?&rdquo;

&ldquo;Are most transfers being acquired by internal or external parties?&rdquo;

&ldquo;Are there many franchisees who would like to sell their units but are unable to find buyers?&rdquo;

&ldquo;What do you think is going on in ________? The transfer rate seems higher there.&rdquo;

&nbsp;

Table No. 3 - Status of Franchised Outlets

This table contains a lot of important information. It details openings, terminations, non-renewals, unit reacquired by the franchisor and units that ceased operation for other reasons, all broken down by state. If you are looking for insight into franchisor/franchisee relations, this is where to find it. Looking at the trends you can get a better picture of: How aggressive is the franchisor in enforcing the franchise agreement? Does the franchisor have a strategy in reacquiring units? How many units are failing? Why? These numbers can help form questions about this relationship, such as:

&ldquo;Does the franchisor adequately protect the brand through enforcement of the franchise agreement? 

&ldquo;Is the franchisor too aggressive in pursuing compliance?&rdquo;

&ldquo;What is the franchisor&rsquo;s strategy in reacquiring units?&rdquo; 

&ldquo;Are they buying units that are profitable or units that would otherwise close?&rdquo;

&ldquo;Upon transfer, do units typically perform better?&rdquo;

&ldquo;Why are so many units closing?&rdquo;

&ldquo;Do you perceive the closures are due to operator or system issues?&rdquo;

&ldquo;Why aren&rsquo;t other franchisees acquiring these units before they close?&rdquo;

&nbsp;

Table No. 4 - Status of Company-Owned Outlets

This table is much like table three, however, it provides detail for company-owned units. It shows by state, how many were opened, reacquired, closed or sold to franchisees. It provides a lot of insight into the strategy behind company-owned unit operations. Are the company-owned units geographically consolidated or are they spread all over the country? Is the company in an acquisition mode or a refranchising mode? Always ask &ldquo;Why?&rdquo;.

&ldquo;What is the franchisor&rsquo;s strategy behind operating company-owned units?&rdquo;

&quot;Do the company-owned units generally outperform or underperform the franchised units?&rdquo;

&ldquo;Do you feel the company-owned units compete with the franchised units for customers or resources?&rdquo;

&ldquo;If the concept is so strong, why doesn&rsquo;t the company operate more/any units?&rdquo; 
 
&ldquo;How does the franchisor test new initiatives or promotions if they do not operate any units themselves?&rdquo;

&ldquo;How does the franchisor stay in touch with what is happening at the unit level if they do not operate any units themselves?&rdquo;

&nbsp;

Table No. 5 - Projected Single Unit Openings

This table details units sold but not yet opened, as well as projects franchised and company-owned unit openings over the next year. Depending on the model, it may give insight into what the<a href="https://sportclips.1851franchise.com/details/2703842/Responsible-Growth-Case-Study-of-a-Mature-Market?utm_source=1851franchise.com&utm_medium=article&utm_campaign=going-deeper-in-validation-using-item-20-insights-to-improve-your-validation-insights-2704964" target="_blank" rel="nofollow"> company&rsquo;s development strategy</a> looks like. For example, many multi-unit concepts will include undeveloped licenses in a multi-unit development schedule and will necessarily disclose a large number of sold by not yet opened units. This may or may not be a cause for alarm. It should give you an idea of how many units are &ldquo;in line&rdquo; before you. It is important to understand how the franchisor <a href="https://sportclips.1851franchise.com/details/2704381/Sport-Clips-Real-Estate-Priority-Policy-is-a-Top-Reason-Real-Estate-Expert-Invested-in-the-Brand?utm_source=1851franchise.com&utm_medium=article&utm_campaign=going-deeper-in-validation-using-item-20-insights-to-improve-your-validation-insights-2704964" target="_blank" rel="nofollow">manages the placement</a> of units within a territory. The franchisor should be able to provide confidence that there is more than enough room within the market to place the units already opened, the units sold but not yet opened, and any units they plan to award to you.

During validation you may find some franchisees to be territorial and project negative feelings toward additional growth. Balance this with the information you receive from the franchisor and come to your own conclusions. Keep in mind that unit level performance is often enhanced in areas where brand penetration is the strongest. Pull up a location map in one of the franchisor&rsquo;s most developed territories to see what the future of your market may look like.

Questions to ask may include:

&ldquo;Is the number of unit openings the franchisor is projecting next year realistic?&rdquo;

&ldquo;Do you feel the company is responsible in executing its growth strategy?&rdquo;

&ldquo;What is the company&rsquo;s policy on extending licenses that are not developed on schedule?&rdquo;

After breaking down the core charts of Item 20, we hope you have a better understanding of what these numbers represent and how you can use them to find areas to further explore in your validation process. Knowing what questions to ask is an important step to making an informed decision. In Part 2 of this article, we will use the specific data included in Sport Clips&rsquo; Item 20 to show how this information can be applied practically.

If you have any questions on any of the information covered in this article, we can <a href="http://www.sportclipsfranchise.com/request-more-info/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=going-deeper-in-validation-using-item-20-insights-to-improve-your-validation-insights-2704964#~w4U1R7" target="_blank" rel="nofollow">continue the conversation here</a>.

&nbsp;

<hr />
&nbsp;

&nbsp;

Going Deeper in Validation: Using Item 20 Insights To Improve Your Validation Insights

1851 Franchise

Breaking down the FDD Item 20 to formulate validation questions designed to really understand what is behind the numbers and lead to more informed buying decisions. 

This brand page has been paid for by 1851. Content within this page that is paid will showcase a Sponsored icon. This means the brand has engaged 1851 FRANCHISE to write the content. Content without the Sponsored Icon is aggregated media placements the brand earned. Questions can be sent to editorial@1851franchise.com

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McDonald’s Faces Lawsuit Alleging McRib Contains No Actual Rib Meat

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Hardee's Franchise - ARC Burger Lawsuit - 1851 Franchise

Hardee’s Lawsuit Targets Franchisee as 77 Restaurants Prepare to Shut Down

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Domino’s Pizza Brings Delivery Cheer to North Pole, Alaska

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California Pizza Kitchen’s Sale Is the Latest in the Era of PE-Backed Turnarounds in Franchising

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Boutique vs. Big Box Gym Franchises: Which Offers Best ROI in the $7 Billion Fitness Market?

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A new study indicates that United States companies&nbsp;<a href="https://www.linkedin.com/news/story/ai-drives-worst-october-layoffs-in-over-20-years-6748836/">cut more than 150,000 jobs this month</a>, the most positions cut in October in over two decades.Generally, the U.S. job market sees an increase in positions as the holidays near, with seasonal and temporary jobs ramping up in areas like retail, food service, hospitality, warehousing and logistics. But Amazon announced this week that it will lay off 14,000 corporate workers (cuts which could wind up being the largest in Amazon’s three decades) in addition to the&nbsp;<a href="https://www.wsj.com/business/logistics/united-parcel-service-ups-q3-earnings-report-2025-stock-jobs-layoffs-1d954f75">nearly 50,000 jobs dropped by UPS</a> in 2025.Conducted by outplacement firm&nbsp;<a href="https://www.challengergray.com/">Challenger, Gray &amp; Christmas Inc.</a>, the new study states that the October cuts are the most significant since 2003, as the rise of the smart phone was beginning to take hold, upending the way business is conducted fast.What’s in play this time and how can it impact franchises?<h2>The Rise of AI</h2>Like smartphones before it, the brisk onset of AI is continually shaking up the way American work gets done.Overall, the U.S. has&nbsp;<a href="https://www.latimes.com/business/story/2025-11-06/us-companies-announce-most-october-job-cuts-in-over-20-years">lost more than one million jobs</a> in 2025 (the most since COVID radically altered the work landscape five years ago). Recent U.S.&nbsp;<a href="https://www.bls.gov/opub/ted/2025/ai-impacts-in-bls-employment-projections.htm">Bureau of Labor Statistics numbers</a> indicate that AI could take a particularly quick hold in the computing, business/financial, architectural/engineering and legal sectors.&nbsp;Historically speaking, as jobs disappear amidst layoffs, franchising has generally highlighted a road forward for those looking to invest in and take more control of both their futures and careers.<h2>The Impact on Franchising</h2>While the food industry continues to experiment with ideas like robotics and automation in an effort to simplify repetitive kitchen tasks and streamline processes, AI is typically utilized for two reasons: the quick delivery of data and improvement of overall work efficiency.While franchised restaurant chains have begun attempting to incorporate AI as part of a more convenient drive-thru experience, there’ve been&nbsp;<a href="https://www.bbc.com/news/articles/ckgyk2p55g8o">hiccups</a>.&nbsp;But using AI to deliver reams of data insights has proven to be an invaluable tool when it comes to identifying trends, delivering more accurately-targeted marketing efforts while improving digital ad optimization, potentially boosting overall business.In terms of improving services like scheduling and inventory management, AI can have a positive impact on the work experience while enhancing productivity.&nbsp;On the customer side, AI-generated data can help franchised businesses better personalize the services offered to their customer base. It can also double as a much quicker way to assess areas for improvement as assessed via customer feedback and reviews. Chatbots and virtual assistants can handle ideas like customer inquiries and even reservations, simplifying processes while improving the overall guest experience.&nbsp;<h2>What’s Next?</h2>Like most tech, the onset of AI is progressing quickly in a largely unabated fashion.Even with the holiday package shipping season approaching, AI seems to be at least partially responsible for 2025 cuts in the warehousing and logistics sectors (as evidenced by significant recent cuts at both Amazon and UPS).&nbsp;While speculation tends to vary, some studies indicate that AI could eliminate&nbsp;<a href="https://fortune.com/2025/10/07/100-million-jobs-at-risk-of-elimination-senator-bernie-sanders-report-ai-kill-40-hour-workweek/">more than 100 million jobs</a>, especially in the entry-level or low wage sectors, over the next 10 years.But while areas like computing seem to face imminent peril, the franchising world continues to provide options for the independent-minded entrepreneur looking to take control of their futures and career.&nbsp;Read the original article&nbsp;<a href="https://www.linkedin.com/news/story/ai-drives-worst-october-layoffs-in-over-20-years-6748836/">here</a>.For more recent news on AI’s impact on franchising, check out these related articles on 1851 Franchise:<ul><li><a href="https://1851franchise.com/ai-is-reshaping-franchising-100-billion-valuations-and-hyper-localized-advertising-2729847#stories">AI Is Reshaping Franchising: $100 Billion Valuations and Hyper-Localized Advertising</a></li><li><a href="https://1851franchise.com/how-franchise-brands-can-prepare-for-the-rise-of-ai-driven-advertising-2729548#stories">How Franchise Brands Can Prepare for the Rise of AI-Driven Advertising</a></li><li><a href="https://1851franchise.com/coffee-and-analytics-ai-can-supercharge-your-franchise-content-marketing-2728309">Coffee and Analytics: AI Can Supercharge Your Franchise Content Marketing</a></li></ul>

AI-related job cuts, October U.S. job cuts, American job cut record

AI-Fueled Layoffs Reshape the U.S. Job Market — And Highlight Franchising’s Resilience

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MOONACHIE, N.J.&nbsp;—&nbsp;<a href="http://ownaparisbaguette.com">Paris Baguette</a>, the French-inspired bakery café franchise with nearly 260 units across the United States, has welcomed&nbsp;<a href="https://www.linkedin.com/in/zac-sulma-05540736/">Zac Sulma</a> to the team as their new chief operating officer. As&nbsp;<a href="http://1851franchise.com/parisbaguette/info">Paris Baguette</a> works toward their goal of reaching 1,000 locations by 2030, Sulma will serve as a key leader to steer their operational growth and support continued success as they scale.Sulma joins Paris Baguette with an extensive background in multi-unit operations in the entertainment and hospitality space. In his new role, Sulma will scale Paris Baguette’s operational processes while keeping a focus on the franchise owners they support.&nbsp;“We’re thrilled to welcome Zac to the Paris Baguette family,” said CEO&nbsp;<a href="https://www.linkedin.com/in/darren-tipton-0526324">Darren Tipton</a>. “His proven track record of driving operational excellence and people-first mentality align perfectly with Paris Baguette’s goals and values. His leadership will be crucial in supporting our franchisees as we all work to reestablish the neighborhood bakery café as the heart of the communities we serve.”Sulma’s vision and values align perfectly with Paris Baguette’s. In addition to witnessing the brand’s impressive growth in recent years, Sulma also has prior professional experience with Tipton and other members of the leadership team, which made him even more confident in joining the team.“I’m incredibly excited to be at Paris Baguette,” Sulma said. “The culture and expectation of success, all with a strong emphasis on the people-first mentality, is always front and center. The number one goal for me, as we work toward 1,000 cafés, is to do that effectively. It’s not just a 1,000-unit finish line; our focus is on getting there with efficient, high-performing cafés while maintaining the operational performance of our current locations.”Sulma’s focus on enhancing the operational framework to support this growth will ensure both new and existing franchisees are set up for long-term success.“I am bringing a high level of operational excellence, and I tie our franchisees’ success with my success,” he said. “We must remember what and who got us to the point where we are today and continue to serve the franchisees who have already become established with the brand. They are just as important as the new franchisees we are trying to attract. People are the most important; my ‘client’ is my team and franchisees, and they will see they’re truly important in how we operate on a daily basis.”ABOUT PARIS BAGUETTE:&nbsp;Paris Baguette is a bakery café franchise with more than 4,000 units across the globe. The global brand first franchised in the U.S. in 2015 and has since established nearly 260 locations in markets across North America, making them one of the premier franchise opportunities in their category. Paris Baguette’s primary mission, executed every day by their expert staff of bakers, cakers, and baristas, is to provide guests with a warm, welcoming bakery café experience that creates joy for all. To find out more information on costs to buy this franchise, please visit&nbsp;<a href="https://ownaparisbaguette.com/.">https://ownaparisbaguette.com/.</a>&nbsp;

Paris Baguette Welcomes Zac Sulma as New Chief Operating Officer

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<a href="https://1851franchise.com/is-it-possible-to-become-a-starbucks-franchise-owner-2724683">Starbucks</a> and&nbsp;<a href="https://1851franchise.com/franchise-deep-dive-dunkin-franchise-costs-fees-profit-and-data-2720835">Dunkin'</a> still control the vast majority of United States coffee sales, but recent&nbsp;<a href="https://www.wsj.com/business/hospitality/why-the-future-of-coffee-doesnt-belong-to-starbucks-fa77aafa">reporting from The Wall Street Journal</a> and&nbsp;<a href="https://www.linkedin.com/news/story/starbucks-and-dunkin-lose-ground-in-coffee-wars-7198233/">industry analysts</a> shows that the category is becoming more dynamic — and increasingly shaped by the rise of mid-sized and fast-growing concepts.&nbsp;<a href="https://1851franchise.com/can-you-open-a-dutch-bros-franchise-in-2024-2724762">Dutch Bros. Coffee</a> continues to spark conversation with its standout performance among Gen Z consumers. While Dutch Bros. itself is not a franchise, the reasons behind its momentum are informing how franchise brands — and major franchise operators — approach the next phase of growth.Dutch Bros has defied broader traffic declines, posting increased visits and spending from younger consumers while raising its fiscal 2025 guidance. What’s notable is that the brand’s strategy relies less on splashy reinvention and more on dialing in consistent execution: maintaining its energetic “broista” culture; leaning into colorful, social-media-ready beverages; refining operations to shorten drive-thru lines; and strengthening its digital and rewards channels. Its approach highlights what today’s younger coffee drinkers respond to: convenience, customization and a sense of fun.That playbook helps explain the surge of interest around&nbsp;<a href="https://www.7brew-coffee-menus.com/7-brew-franchise/">7 Brew</a> — a franchise concept that has rapidly expanded nationwide and is drawing significant investment from major operators.&nbsp;<a href="https://flynn.com/">Flynn Group</a> — the country’s largest franchise operator — has also stepped into the category,&nbsp;<a href="https://www.linkedin.com/posts/flynn-restaurants-group_worlds-largest-franchisee-to-take-on-7-brew-activity-7389716207131852801-bDMc/">signing on to build 160 new 7 Brew drive-thru coffee locations</a>. 7 Brew closed 2024 with 321 stores and more than $500 million in sales, a sharp climb for a brand that only launched in 2017.Those moves come as Starbucks and Dunkin’ work through softer traffic and more competition at home and abroad. The growing interest in franchise-backed, drive-thru coffee concepts points to a market that may look a lot broader and more varied than it did even a few years ago.Read the Wall Street Journal article&nbsp;<a href="https://www.wsj.com/business/hospitality/why-the-future-of-coffee-doesnt-belong-to-starbucks-fa77aafa?gaa_at=eafs&amp;gaa_n=AWEtsqcU1JJom8Du8r0uuBL3_R6yrPuujFQFg34qvthd3WxiGqjWs6PKPyEpiARFVZE%3D&amp;gaa_ts=69121b5e&amp;gaa_sig=2m4UOHnsrLIQp09IzKRMPFuH7_ryF7vtI1kDCI6K9KIzAU5DBY0aATWdcQ7RkXsMD-yOVEreo9gVagqqDa7VZQ%3D%3D">here</a>.&nbsp;Want to learn more about how 1851 helps franchisees find the right franchise opportunity? Visit&nbsp;<a href="http://www.1851growthclub.com">www.1851growthclub.com</a> and start your journey.

As Starbucks and Dunkin’ Navigate a Changing Market, New Coffee Players Keep Gaining Ground

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<a href="https://pieology.com/">Pieology Pizza</a> has filed for Chapter 11 bankruptcy protection following a failed attempt to acquire and rehab underperforming franchise locations. The California-based brand, which was once celebrated as a leader in the “build-your-own” pizza space, filed earlier this week.The filing comes after a gamble to save its footprint, which evidently backfired. Earlier this year, the corporate group made a push to acquire nearly 30 franchised locations that were on the brink of closing, but it did not have the capital necessary to drive a full turnaround.According to court documents, external investors who had previously committed to funding the acquisition withdrew support at the last minute, and without this liquidity, the corporate entity drained its own reserves trying to support continued operations.While this move was a contributor to the brand’s financial struggles, it’s not the only hurdle cited in documents.“Severe disruption due to the pandemic and subsequent economic environment, including labor shortages, inflationary cost pressure and rapidly shifting consumer behavior” also contributed to the decline, co-founder&nbsp;<a href="https://www.linkedin.com/in/carl-c-a9b60b6/">Carl Chang</a> noted in the filing.The bankruptcy filing lists liabilities between $1 million and $10 million, including significant debts to landlords and state tax authorities.&nbsp;Notably, the filing only impacts the company-owned entities. The remaining 29 franchisee-owned locations are not part of the Chapter 11 process.Read more about the bankruptcy&nbsp;<a href="https://www.restaurantbusinessonline.com/financing/pieology-pizza-files-chapter-11-bankruptcy">here</a> and the role underperforming locations played in it&nbsp;<a href="https://www.restaurantbusinessonline.com/financing/how-pieologys-attempt-rescue-restaurants-contributed-bankruptcy">here</a>.

Pieology Pizza Enters Chapter 11 Following Costly Bid To Save Struggling Stores

pieology-pizza-files-chapter-11-bankruptcy

<a href="https://www.chick-fil-a.com/franchise">Chick-fil-A</a> is one of the most recognizable names in the quick-service restaurant industry. With its signature chicken sandwiches, customer-first culture and impressive per-unit sales, the brand is often at the top of the list for entrepreneurs researching restaurant franchises. But if you’re wondering how to buy a franchise with&nbsp;<a href="https://1851franchise.com/the-rise-of-chick-fil-a-americas-number-one-chicken-franchise-2727483#stories">Chick-fil-A</a>, you’ll quickly realize that this opportunity comes with a unique set of requirements — and not everyone qualifies.<h2>Chick-fil-A Franchise Requirements</h2>Chick-fil-A is different from most restaurant franchises because it doesn’t take a large amount of money to get started.&nbsp;<a href="https://1851franchise.com/how-much-does-a-chick-fil-a-franchise-cost-2715278#stories">The franchise fee is $10,000</a>, and applicants don’t need to show a specific net worth or liquid assets. The lower cost, however, comes with a trade-off. The company has one of the toughest application processes in franchising and places strict rules on how the business must be run.To be considered for a Chick-fil-A franchise, applicants need to show that they can legally run a business in the United States and have a solid professional background. The brand generally looks for people with at least five years of work experience and some history of leading teams. A clean financial record is important, too, since anyone with a bankruptcy on file won’t move forward in the process. The $10,000 franchise fee has to come directly from the candidate’s own funds rather than loans or gifts. On top of that, operators are expected to commit to the restaurant full time, which means stepping away from other active business ventures and putting all of their focus into building and leading their Chick-fil-A location.Candidates also need to be fluent in written and spoken English and commit to full-time, hands-on involvement in the restaurant. In fact, Chick-fil-A expects its franchisees to divest from any other active business ventures so that they can focus entirely on operating their location.Meeting these requirements does not guarantee acceptance. Chick-fil-A receives tens of thousands of applications each year but approves only about one percent, making the opportunity one of the most competitive in franchising.<h2>A Hands-On, Operational Model</h2>One thing that makes Chick-fil-A stand out is how it expects its restaurants to be run. Owners can’t just hire managers and step back like in many other franchises. Instead, operators are expected to be hands-on with the daily business.Chick-fil-A also keeps more control over key parts of the operation than most franchisors. The company chooses the location, builds the restaurant and provides the equipment. The operator’s main role is to deliver excellent service and lead a team that meets the brand’s standards.This is not a passive investment or a multi-unit opportunity. Chick-fil-A intentionally limits each franchisee to a single location, ensuring that operators are deeply engaged in leading their restaurant and contributing to the surrounding community. For many, this model is appealing because it emphasizes leadership and culture-building rather than simply financial investment.<h2>Why It Matters</h2>For people thinking about franchising, Chick-fil-A’s requirements show why the brand is both appealing and difficult to get into. The low cost to start, the strong name recognition and the sales numbers make it one of the most appealing restaurant franchises out there, but the rules and competitive selection process make it a tough opportunity to land.On the other hand, the strict operational structure, high profit-sharing arrangement and extremely competitive application process can make it a tough fit for entrepreneurs who want more flexibility or who prefer to run multiple concepts at once.If you are considering how to buy a franchise with Chick-fil-A, it’s important to carefully evaluate whether you align with the brand’s expectations. The operators who tend to do well are the ones who like being in the restaurant every day, working with their team and serving customers. For people who want to be closely involved in one business, the Chick-fil-A model can be both profitable and satisfying.For more info on Chick-fil-A, check out these related stories on 1851 Franchise:<ul><li><a href="https://1851franchise.com/chick-fil-a-takes-the-crown-as-the-nations-premier-chicken-chain-2727486#stories">Chick-fil-A Takes the Crown as the Nation’s Premier Chicken Chain</a></li><li><a href="https://1851franchise.com/the-pros-and-cons-of-owning-a-chick-fil-a-franchise-2725069#stories">The Pros and Cons of Owning a Chick-fil-A Franchise</a></li><li><a href="https://1851franchise.com/chick-fil-a-emerges-as-the-leader-in-the-us-chicken-chain-industry-2727457#stories">Chick-fil-A Emerges as the Leader in the U.S. Chicken Chain Industry</a></li></ul>

Do You Qualify? A Look at the Chick-fil-A Franchise Requirements

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Americans are spending more on their pets than ever before. Data from the&nbsp;<a href="https://americanpetproducts.org/industry-trends-and-stats">American Pet Products Association&nbsp;</a>shows the industry hit $152 billion in 2024, and sales are expected to reach $157 billion in 2025.With 77% of pet owners saying the economy hasn’t affected their spending, pet supply and retail franchises are positioned to thrive in this environment of steady consumer demand and rising industry growth.For entrepreneurs, this resilience makes pet supply and retail franchises an appealing path to ownership right now. Here are 15 top options to consider.<h2><a href="https://1851franchise.com/franchise-deep-dive-pet-wants-franchise-costs-fees-profit-and-data-2722308">Pet Wants</a></h2><ul><li><a href="https://petwantsfranchise.com/">Franchise Website&nbsp;</a></li><li><a href="https://1851franchise.com/petwants">1851 Newsroom&nbsp;</a></li><li>Investment Range: $137,850 - $219,000</li><li>Unit Count: 160+</li></ul>Pet Wants sells fresh, small-batch pet food and wellness products delivered straight to pet owners. The brand started in 2010 and has grown into a flexible franchise model with mobile and retail options. Owners benefit from strong community engagement and a scalable system.<h2>Pet Evolution</h2><ul><li><a href="https://petevolutionfranchising.com/">Franchise Website&nbsp;</a></li><li><a href="https://1851franchise.com/growth-club/pet-evolution-care-franchise">Growth Club</a></li><li>Investment Range: $595,300 - $1,225,500</li><li>Unit Count: 28</li></ul>Pet Evolution calls itself the “Whole Foods for Pets,” offering premium food, grooming, toys and a self-serve dog wash. The brand also created a Good Life Membership and a Mobile Nail Van for steady, recurring income. With a focus on healthy food and high standards, it appeals to pet owners who want the best for their animals.<h2><a href="https://1851franchise.com/franchise-deep-dive-the-dog-stop-franchise-costs-fees-profit-and-data-2723230">The Dog Stop</a></h2><ul><li><a href="https://thedogstop.com/franchise-opportunities/">Franchise Website&nbsp;</a></li><li><a href="https://1851franchise.com/growth-club/dog-stop-franchise">Growth Club</a></li><li>Investment Range: $553,500 - $1,112,800</li><li>Unit Count: 35+</li></ul>The Dog Stop is a full-service pet care center with day care, boarding, grooming, training and retail. Dogs enjoy indoor and outdoor play yards while owners find food, toys and treats in the store. It’s designed as a one-stop shop for dogs and their families.<h2><a href="https://1851franchise.com/franchise-deep-dive-pet-supplies-plus-franchise-costs-fees-profit-and-data-2721654">Pet Supplies Plus</a></h2><ul><li><a href="https://www.petsuppliesplusfranchising.com/">Franchise Website&nbsp;</a></li><li>Investment Range: $540,520 - $1,975,005</li><li>Unit Count:&nbsp;735+</li></ul>Pet Supplies Plus is one of the largest pet retail chains in the country with a neighborhood-style approach. Stores carry food, supplies, small animals and offer grooming and wash stations. Founded in 1988, the brand continues to expand nationwide.<h2>Wild Birds Unlimited</h2><ul><li><a href="https://franchise.wbu.com/">Franchise Website&nbsp;</a></li><li>Investment Range: $226,601 - $378,977</li><li>Unit Count:&nbsp;340+</li></ul>Wild Birds Unlimited sells products for backyard bird feeding and nature watching. Customers can find bird food, feeders and accessories in its stores across North America. The franchise has grown to more than 300 locations by serving a loyal community of bird enthusiasts.<h2>Petland</h2><ul><li><a href="https://petland.com/franchise-opportunities/">Franchise Website&nbsp;</a></li><li>Investment Range: $315,500 - $1,080,500</li><li>Unit Count: 200+ worldwide</li></ul>Petland has been around since 1967 and now operates worldwide. The stores sell pets, food, and supplies, and also focus on animal care and adoption programs. Franchisees benefit from a long history, strong systems and an international presence.<h2>Ben's Barketplace</h2><ul><li><a href="https://bensbarketplace.com/own-a-bens/">Franchise Website&nbsp;</a></li><li>Investment Range: $241,500 - $414,500</li><li>Unit Count:&nbsp;10</li></ul>Ben’s Barketplace is a small chain that sells premium food, treats, toys and other essentials for pets. The brand puts a big focus on healthy diets and natural products for dogs and cats. With 10 locations, it has built its reputation around community and local service.<h2>Pet Depot</h2><ul><li><a href="https://petdepot.net/retail-franchise/">Franchise Website&nbsp;</a></li><li>Investment Range:&nbsp;$177,500 - $1,734,500</li><li>Unit Count:&nbsp;22&nbsp;&nbsp;</li></ul>Pet Depot runs in different formats, from full pet stores to veterinary hospitals and smaller Barkery shops. The company is known for carrying natural pet foods and giving franchisees strong buying power and marketing help. Owners get the backing of a big brand while still being able to keep a local, independent feel.<h2><a href="https://1851franchise.com/franchise-deep-dive-earthwise-pet-franchise-costs-fees-profit-and-data-2725581">EarthWise Pet</a></h2><ul><li><a href="https://www.earthwisepetfranchise.com/">Franchise Website&nbsp;</a></li><li>Investment Range: $486,500 - $863,000</li><li>Unit Count:&nbsp;160+</li></ul>EarthWise Pet focuses on natural food, grooming and wellness products for dogs and cats. Many stores include self-wash stations and professional grooming services. With more than 160 locations, it combines specialty retail with growing consumer demand for healthy pet care.<h2>The Healthy Animal</h2><ul><li><a href="http://www.thehealthyanimal.com/franchise/">Franchise Website&nbsp;</a></li><li>Investment Range:&nbsp;$101,700 - $198,700</li><li>Unit Count: 2</li></ul>The Healthy Animal is a very small but growing brand with just two locations. It focuses on natural, healthy food and products for pets. Owners get the chance to build a business in a niche with strong local connections..<h2>Woof Gang Bakery&nbsp;</h2><ul><li><a href="https://franchise.woofgangbakery.com/">Franchise Website&nbsp;</a></li><li>Investment Range: $184,420 - $506,620</li><li>Unit Count:&nbsp;90+</li></ul>Woof Gang Bakery is a pet shop that also offers grooming and fresh-baked treats for dogs. The stores stand out for their bright look, boutique-style products, and personal service. With more than 90 locations, the brand has become well known in the pet retail market.<h2>Wag N' Wash</h2><ul><li><a href="https://wagnwashfranchising.com/">Franchise Website&nbsp;</a></li><li>Investment Range: $520,520 - $1,357,600</li><li>Unit Count: 25+</li></ul>Wag N’ Wash is a pet store that sells food, toys and grooming products while also giving owners a place to wash their pets. The shops are designed to feel fun and welcoming for the local community. By mixing retail with services, the brand brings in steady foot traffic and repeat customers.<h2>Paw Street Market</h2><ul><li><a href="https://www.pawstreetmarket.com/service/franchise-inquiries/">Franchise Website&nbsp;</a></li><li>Investment Range:&nbsp;<a href="https://www.pawstreetmarket.com/service/franchise-inquiries/">Contact franchisor</a></li><li>Unit Count: 6 (Canada)</li></ul>Paw Street Market is a Canadian pet retail chain with six locations. It offers food, treats and supplies for dogs and cats. The brand focuses on local service and specialty products.<h2>Trophy Pet Foods</h2><a href="https://www.trophypetfoods.co.uk/franchise-opportunities/">Franchise Website&nbsp;</a>Investment Range: £13,995 minimumUnit Count: 11 (U.K.)Trophy Pet Foods is a U.K.-based franchise that delivers British-made, natural pet food straight to customers’ doors. Franchisees act as nutritional advisors, offering free consultations and building lasting relationships with pet owners while providing ethically approved, premium recipes. With a proven system and strong consumer demand for quality and convenience, Trophy gives owners the chance to run a flexible business rooted in care for pets.<h2><a href="https://1851franchise.com/franchise-deep-dive-hounds-town-usas-franchise-costs-fees-profit-and-data-2721298">Hounds Town USA</a></h2><ul><li><a href="https://www.houndstownfranchise.com/">Franchise Website</a></li><li>Investment Range:&nbsp;$475,875 - $1,278,489</li><li>Unit Count:&nbsp;75+</li></ul>Hounds Town USA offers day care, boarding, grooming and pet taxi services. Facilities are designed for fun, safe and affordable pet care. With more than 75 units, the franchise is growing quickly in the booming pet services sector.Spending on pets is at an all-time high, and demand shows no signs of slowing down. From small specialty shops to nationwide chains, these franchises give owners different ways to serve pet families. For anyone looking to run a business, it’s a chance to step into a growing market built around the bond people have with their pets.For more information on pet-related franchise opportunities, check out these related stories on 1851:<ul><li><a href="https://1851franchise.com/dogtrainingelite/dog-training-elite-franchisees-go-from-the-oil-fields-to-the-dog-park-2726257">Dog Training Elite Franchisees Go From the Oil Fields to the Dog Park</a></li><li><a href="https://1851franchise.com/petwants/how-pet-wants-franchisees-rapidly-grow-their-businesses-from-mobile-to-brick-and-mortar-locations-2726266#growing-a-franchise">How Pet Wants Franchisees Rapidly Grow Their Businesses from Mobile to Brick-and-Mortar Locations</a></li><li><a href="https://1851franchise.com/petbar/petbar-franchise-opportunity-boutique-pet-grooming-2729681">How petbar Makes Pets and Their Owners Happy as Part of the Family in a Clean and Fun Environment</a></li></ul>

The Top 15 Pet Supplies and Retail Franchises for 2025

The Top 15 Pet Supplies and Retail Franchises for 2026

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Ellianos Coffee Franchise Costs, Fees, Profit and Data for 2025

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Many people see their pets as part of the family. With that mindset becoming the norm, services like day care and quality boarding are no longer seen as extras, but as an important part of giving pets a happy, healthy life. This shift, coupled with a rising “do it for me” mentality and increased need for care due to return-to-office mandates, positions daycare and boarding concepts very favorably.For entrepreneurs looking to break into the industry and cater to growing demand, these 15 boarding and daycare franchises are great opportunities for 2026:<h2><a href="https://1851franchise.com/franchise-deep-dive-happy-cat-hotel-franchise-costs-fees-profit-and-data-2722849">Happy Cat Hotel &amp; Spa</a></h2><ul><li><a href="https://happycatfranchising.com/">Franchise Website&nbsp;</a></li><li><a href="https://1851franchise.com/growth-club/happy-cat-hotel-franchise-costs">Growth Club</a></li><li>Investment Range: $398,000 - $878,000</li><li>Unit Count:&nbsp;12</li></ul>Happy Cat Hotel &amp; Spa carves out a unique and underserved niche in the pet care market by focusing specifically on cats. With a boutique model that provides a quiet, dog-free environment, the brand appeals to discerning cat owners. And, with themed suites, grooming services and a retail component, franchisees can capture multiple streams of revenue.<h2><a href="https://1851franchise.com/franchise-deep-dive-the-dog-stop-franchise-costs-fees-profit-and-data-2723230">The Dog Stop</a></h2><ul><li><a href="https://thedogstop.com/franchise-opportunities/">Franchise Website&nbsp;</a></li><li><a href="https://1851franchise.com/growth-club/dog-stop-franchise">Growth Club</a></li><li>Investment Range: $553,500 - $1,112,800</li><li>Unit Count: 35+</li></ul>The Dog Stop operates an all-in-one model that provides day care, boarding, grooming and training services. With a focus on safety and highly trained staff, the franchise appeals to pet parents with high standards and can be run as a semi-absentee model with the right people in place.<h2><a href="https://1851franchise.com/franchise-deep-dive-dogtopias-franchise-costs-fees-profit-and-data-2721549">Dogtopia</a></h2><ul><li><a href="https://www.dogtopia.com/franchising-us/">Franchise Website&nbsp;</a></li><li>Investment Range:&nbsp;$543,095 - $1,399,180</li><li>Unit Count:&nbsp;285+&nbsp;</li></ul>Dogtopia is a premium franchise focused on dog day care. The brand has a membership model that encourages recurring visits, creating a stable and predictable revenue stream for franchisees.&nbsp;&nbsp;<h2><a href="https://1851franchise.com/franchise-deep-dive-central-bark-usa-franchise-costs-fees-profit-and-data-2725648">Central Bark</a></h2><ul><li><a href="https://centralbarkfranchising.com/">Franchise Website&nbsp;</a></li><li>Investment Range:&nbsp;$569,200 - $1,394,250</li><li>Unit Count:&nbsp;40+&nbsp;&nbsp;</li></ul>Central Bark leverages a science-backed, “whole dog care” approach. While its primary offering is doggy day care, it focuses on enrichment through play, learning and socialization, and it also gives dogs an ample chance to rest. The brand’s weekly attendance policy keeps dogs acclimated and provides predictable revenue for franchisees.<h2><a href="https://1851franchise.com/franchise-deep-dive-dogdrop-franchise-costs-fees-profit-and-data-2724575">Dogdrop</a></h2><ul><li><a href="https://www.dogdrop.co/franchise">Franchise Website&nbsp;</a></li><li>Investment Range:&nbsp;$360,800 - $650,160</li><li>Unit Count:&nbsp;4&nbsp;&nbsp;</li></ul>Dogdrop is a modern, tech-forward brand that focuses on convenient pet care for busy pet owners, often in high-traffic neighborhoods. A smaller footprint lowers the initial investment and, by focusing exclusively on day care services, franchisees can elevate service and become the local experts.<h2><a href="https://1851franchise.com/franchise-deep-dive-hounds-town-usas-franchise-costs-fees-profit-and-data-2721298">Hounds Town USA</a></h2><ul><li><a href="https://houndstownusa.com/franchising/">Franchise Website&nbsp;</a></li><li>Investment Range:&nbsp;$475,875 - $1,278,489</li><li>Unit Count:&nbsp;75+</li></ul>Hounds Town USA is a dog day care concept that uses a proprietary system to group dogs by temperament and psychology, encouraging safer, more comfortable play between animals. Because Hounds Town USA focuses on a dog-friendly, “no frills” build-out, initial costs can be lower than other day care concepts.<h2>Leader of the Pack</h2><ul><li><a href="https://leaderofthepackfranchise.com/">Franchise Website&nbsp;</a></li><li>Investment Range:&nbsp;$341,665 - $647,304</li><li>Unit Count:&nbsp;2</li></ul>Leader of the Pack is a full-service franchise. Though it began as a dog training concept, it evolved to provide day care and boarding services, too. One of the brand’s key differentiators is its cage-free approach, catering to pet owners who do not want their animals crated or in single kennels for the duration of their stay.<h2>K9 Resorts</h2><ul><li><a href="https://www.k9franchise.com/">Franchise Website&nbsp;</a></li><li>Investment Range:&nbsp;$2,280,530 - $3,604,802</li><li>Unit Count:&nbsp;48&nbsp;&nbsp;</li></ul>K9 Resorts is a luxury “five-star hotel” experience for dogs, offering an elevated experience for discerning dog owners. The brand has state-of-the-art facilities and a model that focuses on higher-margin overnight boarding, which positions franchisees to reach profitability sooner.<h2>Camp Run-A-Mutt</h2><ul><li><a href="https://www.camprunamutt.com/franchise/">Franchise Website&nbsp;</a></li><li>Investment Range:&nbsp;$526,000 - $1,040,000</li><li>Unit Count:&nbsp;12&nbsp;</li></ul>Camp Run-A-Mutt’s cage-free model, which includes dogs being supervised 24/7, appeals to a large segment of pet owners. With additional amenities like splash ponds and live cameras, the brand has several differentiators that help it stand out in the market.<h2>All American Pet Resorts</h2><ul><li><a href="https://www.allamericanpetresorts.com/franchise-opportunities/">Franchise Website&nbsp;</a></li><li>Investment Range: $798,000 - $1,650,000</li><li>Unit Count:&nbsp;12</li></ul>All American Pet Resorts is a premium boarding facility that offers more of a “resort” experience. With a 24/7 human presence and pet “suites,” rather than cages or crates, All American Pet Resorts prioritizes comfort — and peace of mind for the pet parent — and a healthy, safe experience.<h2>Preppy Pet</h2><ul><li><a href="https://preppypet.com/preppypetfranchises/">Franchise Website&nbsp;</a></li><li>Investment Range:&nbsp;$100,000 - $300,000</li><li>Unit Count:&nbsp;20+&nbsp;&nbsp;</li></ul>Preppy Pet is a lower-investment, high-potential pet care model. In addition to boarding dogs, the brand will care for cats, birds and small animals, which broadens the potential client base and diversifies revenue streams.<h2>Playful Pack</h2><ul><li><a href="https://playfulpack.com/franchising">Franchise Website&nbsp;</a></li><li>Investment Range:&nbsp;$286,250 - $489,000</li><li>Unit Count:&nbsp;12&nbsp;&nbsp;</li></ul>Playful Pack is a modern day care and boarding franchise that focuses on creating an engaging, enriching experience for each dog. By providing mental and physical stimulation, the brand stands out above other day care models that rely exclusively on play groups for exercise.<h2>Camp Bow Wow</h2><ul><li><a href="https://www.campbowwow.com/franchising">Franchise Website&nbsp;</a></li><li>Investment Range:&nbsp;$1,216,577 - $2,037,471</li><li>Unit Count:&nbsp;220+</li></ul>Camp Bow Wow offers a full-service model that allows pets to receive grooming and training services while at “camp.” As a major national brand, Camp Bow Wow provides franchisees instant credibility, and the brand’s commitment to safety and transparency is an attractive attribute for pet parents.<h2>Pet Play Place</h2><ul><li><a href="https://petplayplace.com/franchise/">Franchise Website&nbsp;</a></li><li>Investment Range:&nbsp;<a href="https://petplayplace.com/contact/">Contact franchisor</a></li><li>Unit Count: 2</li></ul>Pet Play Place is a franchise brand focused on a fun, innovative enrichment experience. With day care and boarding, “oasis” play and themed events, the brand has multiple ways for franchisees to engage their communities and capture revenue.<h2>TailWaggers Doggy Daycare</h2><ul><li><a href="https://www.tailwaggersdoggydaycare.com/franchising">Franchise Website&nbsp;</a></li><li>Investment Range: $712,300 - $1,107,667&nbsp;</li><li>Unit Count: 9</li></ul>TailWaggers is a day care and boarding franchise that offers all-day play, enrichment activities and careful socialization. With temperature-controlled facilities and no scheduled nap times, TailWaggers positions itself as a trustworthy provider for local pet parents.The pet boarding and daycare space is thriving, largely driven by pet owners who view their pets as family and are hesitant to leave them home alone or crated all day. With a range of models, from straightforward, lower-investment brands to niche, luxury concepts, there is an investment opportunity for any entrepreneur looking to get their start in the lucrative pet industry.For more information on pet-related franchise opportunities, check out these related stories on 1851:<ul><li><a href="https://1851franchise.com/central-bark-celebrates-the-power-of-rescue-with-therapy-dog-petunia-2726159#stories">Central Bark Celebrates the Power of Rescue With Therapy Dog Petunia</a></li><li><a href="https://1851franchise.com/growth-club/industry/pet-animal-franchise-opportunities">How to Buy a Profitable Pet Franchise Business</a></li></ul>

Photo of group of dogs standing together in day care facility

Top Pet Boarding and Day Care Franchise Opportunities for 2026

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Scenthound Franchise Costs, Fees, Profit and Data for 2025

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