Franchise Deep Dive: Pet Supplies Plus Franchise Costs, Fees, Profit and Data

The pet retail franchise has seen impressive franchise development over the past few years, thanks in part to its steadily growing suite of services and products and its strong AUV.

By Luca Piacentini1851 Franchise Managing Editor

Updated 5:17PM • 03/21/23

LAST UPDATED: December 15, 2022

FRANCHISE WEBSITE: https://www.petsuppliesplusfranchising.com/

NUMBER OF LOCATIONS: 374 franchise locations and 229 corporate locations

REPORTED COST TO GET IN: $454,870 to $1,524,200

REPORTED ROI (Item 19): $2,765,127 (Average Annual Gross Sales)

Pet Supplies Plus is one of the largest pet retail franchises in the country. It offers a wide variety of pet food, pet supplies, pets (including small animals, birds, reptiles, and fish, but not dogs or cats), pet grooming and bathing services, as well as related products and services.

How Many Pet Supplies Plus Locations Are There?

Over the last three years, Pet Supplies Plus has been rapidly expanding — franchise units have opened at an average rate of about 47 stores a year which is one almost every week. In December 2021, Pet Supplies Plus celebrated its 600th grand opening in Gresham, Oregon. Today, there are locations across 36 states and the brand was recently ranked as No. 20 on Entrepreneur’s 2022 Franchise 500 list.

According to the American Pet Products Association (APPA), pet product sales have surpassed $100 billion, fueled partially by the spike in pet ownership during the pandemic. Still, it is a highly fragmented market, with the biggest players like Aussie Pet Mobile Inc., Camp Bow Wow and Best Friends Pet Care, Inc, each owning less than 5% of the market share. This has helped the Pet Supplies Plus franchise attract pet-passionate entrepreneurs in recent years.

Pet Supplies Plus was founded in 1988 by Harry Shallop and Jack Berry in Redford, Michigan. With a plan to revolutionize the pet industry through franchising, Shallop and Berry wanted to make it easier to shop for pet supplies and were inspired by the bright and well-stocked aisles of grocery stores. The brand began franchising a year later.

Since then, Pet Supplies Plus has continued to expand around the United States. By the early 2000s, there were more than 200 stores in operation. A decade later, in 2010, Pet Supplies Plus was acquired by Irving Place Capital, a private equity group. Under Irving Place Capital’s leadership, Pet Supplies Plus pushed national expansion further and hit a milestone of 400 stores in 2017. In late 2018, Pet Supplies Plus was acquired by Sentinel Capital Partners, who sold the company in early 2021 to Franchise Group, Inc. for around $700 million in cash.

What is the Pet Supplies Plus Business Model?

The Pet Supplies Plus business model is designed around the establishment and operation of retail stores offering pet food, pet supplies, pets, pet grooming and bathing services, and related products and services under the Pet Supplies Plus mark and system. Pet Supplies Plus stores offer a wide variety of pet food, pet supplies, pets, pet grooming and bathing services, as well as related products and services in a clean, bright, retail environment.

In mid-September 2021, Pet Supplies Plus expanded its offerings to include prescription pet medications and food available online through VetSource, a pet health company that provides innovative pharmacy, technology, and business services and one of the only major pharmacies that partners closely with veterinarians.

This wide array of products and services allows Pet Supplies Plus to continue to meet evolving pet parent needs.

How Much Can Pet Supplies Plus Franchise Owners Make?

The financial performance representations in Pet Supplies Plus’ 2022 Franchise Disclosure Document set forth average weekly and annual gross sales data, gross margins, earnings before interest, taxes, depreciation, and amortization (“EBITDA”), rent expenses, royalties and system advertising fund fee expenses, and labor expenses for the 248 franchised Stores that were open and began operating prior to January 1, 2021 (the “Reporting Franchised Stores”).

Franchised Stores Opened Prior to January 1, 2020

1 Year

Store Count: 38
Average Weekly Gross Sales: $34,508
Average Annual Gross Sales: $1,794,432

2-3 Years

Store Count: 56
Average Weekly Gross Sales: $41,215
Average Annual Gross Sales: $2,143,205

4+ Years

Store Count: 203
Average Weekly Gross Sales: $56,085
Average Annual Gross Sales: $2,916,426

Average of All Stores

Store Count: 297
Average Weekly Gross Sales: $50,521
Average Annual Gross Sales: $2,627,079

The Reporting Franchised Stores’ performance data is segmented into groups by vintage. During the Measurement Period, there were 374 total franchised outlets.

Reporting Franchised Stores

1 Year

Store Count: 26
Average Weekly Gross Sales: $34,398
Average Annual Gross Sales: $1,788,684
Annual Gross Margin %: 40.9%
Annual EBITDA: $7,529 (0.4%)
Annual Rent: $173,558 (9.7%)
Annual Royalty and SAF Fee Expense: $54,606 (3.1%)
Annual Labor Expense: $317,329 (17.7%)

2-3 Years

Store Count: 44
Average Weekly Gross Sales: $44,237
Average Annual Gross Sales: $2,300,319
Annual Gross Margin %: 40.6%
Annual EBITDA: $170,780 (7.4%)
Annual Rent: $183,802 (8.0%)
Annual Royalty and SAF Fee Expense: $76,852 (3.3%)
Annual Labor Expense: $331,090 (14.4%)

4+ Years

Store Count: 178
Average Weekly Gross Sales: $58,128
Average Annual Gross Sales: $3,022,650
Annual Gross Margin %: 37.4%
Annual EBITDA: $340,948 (11.3%)
Annual Rent: $175,146 (5.8%)
Annual Royalty and SAF Fee Expense: $83,269 (2.8%)
Annual Labor Expense: $328,487 (10.9%)

Average of All Stores

Store Count: 248
Average Weekly Gross Sales: $53,176
Average Annual Gross Sales: $2,765,127
Annual Gross Margin %: 38.1%
Annual EBITDA: $275,802 (10.0%)
Annual Rent: $176,515 (6.4%)
Annual Royalty and SAF Fee Expense: $79,125 (2.9%)
Annual Labor Expense: $327,779 (11.9%)

How Much Does it Cost to Open a Pet Supplies Plus?

The total estimated Pet Supplies Plus franchise costs range from $454,870 to $1,524,200. The Item 7 of the company’s 2022 FDD breaks down those costs as follows:

Initial Franchise Fee: $49,900
Inventory: $160,000 to $230,000
Equipment: $126,700 to $275,000
POS Equipment Installation: $3,150 to $4,150
Full Store Preprinted Shelf Labels for Product: $120 to $150
Training: $4,000 to $8,000
Advertising Grand Opening: $20,000 to $30,000
Insurance: $2,000 to $7,000
Leasehold Improvements: $25,000 to $715,000
Prepaid Rent/Security Deposit: $0 to $10,000
Legal and Accounting: $4,000 to $10,000
Pre-Opening Labor: $10,000 to $35,000
Set Up Fee: $10,000
Additional Funds – Initial Period (6 Months): $40,000 to $140,000

What if the Franchise Fee for Pet Supplies Plus?

The initial Pet Supplies Plus Franchise Fee is $35,000 to $49,900.

Ongoing fees include:

Royalty: 2% of monthly Gross Sales for the first 12 months of operation; 3% of monthly Gross Sales after the first 12 months of operation
Advertising: 3.5% of Gross Sales; 2/3 toward local spend as directed by Pet Supplies Plus and 1/3 into the National Advertising Fund (NAF) with a maximum annual total contribution (local and NAF) of $100,000

Who is the Leadership of Pet Supplies Plus?

What Helpful Articles Can I Read to Learn More About Pet Supplies Plus?

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