The Great Franchisee: Michael DeMatteo, Hounds Town USA, New York

Michael DeMatteo built a thriving career as a financial advisor, but when he struggled to find high-quality pet boarding for his dog, he saw a new career opportunity for himself. Now, DeMatteo is one of the newest franchisees with Hounds Town USA, the 10-plus-unit doggie daycare franchise. 

We talked to DeMatteo to learn more about his journey from corporate financial advisor to franchise owner. 

1851 Franchise: Tell us your story – what did you do before franchising?

Michael DeMatteo: I work at my family’s boutique investment advisory firm and have been there for seven years. My family started the firm in 1986 and I’ve been around the business my entire life. Currently, I’m an analyst and advisor, but wear many hats at the company. We recently were acquired by a company based in Minnesota and since then I’ve been looking for options outside of finance. I’m going to continue working there and on my new Hounds Town USA, but if everything goes well I hope to at some point make Hounds Town my full-time career.  

1851: How did you initially find out about franchising? 

DeMatteo: I feel our market is underserved as far as quality dog care goes. There is only one other dog care place in the area and the pricing there is quite high. Franchising is something I've always been interested in, and having already identified an industry that was underrepresented in my area, I started looking into different dog care franchises and spoke to Hounds Town USA after some research. After talking to [CEO] Mike Gould and his team I decided they were the right people to work with and to help me bridge Hounds Town to the Hudson Valley.

1851: Why did you choose franchising over starting your own business?

DeMatteo: I was really looking for a business with a strong franchise record because they obviously have an idea and model that works. When starting your own business there are a lot of unknowns and things to figure out. With a finance background, I wouldn't have known where to begin in starting a dog daycare but with a franchise, you have a proven model to follow.

1851: What types of brands did you look at?

DeMatteo: I mostly looked in the dog daycare space because I felt there was a great opportunity for it in this area, but I did look into a couple of QSR franchises as well.  

1851: Why were you looking for something different?

DeMatteo: I've been in the finance space for so long. I went to college thinking I would do something different but ended up in finance anyway. I was looking for a different avenue to use the experience I gained but in a different field. And feel my experience will apply well to running a franchise.

1851: Why did you pick Hounds Town USA? What excited you most about the potential?

DeMatteo: Part of the reason I chose Hounds Town USA is because I came across its website and realized it was New York-based. They didn’t have a private equity backing, which I think can dilute the communication between corporate and franchisees. I also felt more support from them than I did from other brands. The business model has a low barrier to entry, and a big thing that separates Hounds Town USA is that they don’t discriminate based on breed. Hounds Town USA does doggie playgroups based on temperament so that they don’t have to discriminate breeds. Having a CEO who has a lot of experience and is a true dog person is extremely valuable in this business as well and Hounds Town definitely has that in Mike Gould.  

1851: What are your dreams with the business? What does the future look like?

DeMatteo: I want to eventually be focused solely on Hounds Town USA. I think I can do it in about five years. Then the goal will be to open two more locations closer to New York City in Westchester. I want to be fully invested in Hounds Town and eventually have it as the career supporting me and my family.

1851: What value do you see your business providing to the community?

DeMatteo: Hounds Town looks to serve commuters who don’t want to leave their dogs unattended all day while they are at work. Leaving a dog home all day causes stress on both the owner and the pet, so we are hoping to alleviate that stress. We also plan to partner with local dog shelters to facilitate dog adoptions in the area. 

1851: What advice would you have for others looking at buying a franchise?

DeMatteo: Do your homework. Select the industry you’re interested in, cast a wide net at first and get some phone calls with existing franchisees scheduled. Once you vet the concept, then dig into the finances — which is just as important. Make sure the initial investment won’t ruin you if it doesn’t work out. Make sure you have a good working relationship with corporate and feel comfortable with the leadership structure as this will likely be a long-term partnership. 

My experience with Hounds Town USA before any monetary amount was exchanged was great. I met the CEO and President in person and both made me feel really comfortable with the investment I was making.  So I would look for a similar experience where you feel 100% comfortable with the people you are getting into business with.

1851: What do you do in your personal time?

DeMatteo: I enjoy running and am a big sports fan. I went to UNC Chapel Hill so I’m also a big Tarheels fan and I try to visit Chapel Hill as often as I can. 

My wife and I also enjoy taking our dog for walks through our town of Fishkill, New York.