Best Pet Franchises for Animal Lovers
In this article, we will go through the best pet franchises for you to invest in 2022. Find out more about them here!
Table of Contents:
There is a huge variety of pet franchises available in the market for 2022 and beyond. In today’s article, we will compare those franchises by different metrics, including payback period, the number of stores, etc.
The State of the Pet Industry 2022 to 2027
Three of the biggest franchise contenders in the pet market are Pet Supplies Plus, Camp Bow Wow and Woof Gang Bakery. However, none of them own more than 5% of the market share, resulting in a highly fragmented market. The industry brings in $8.4 billion in revenue annually, with profits of $952 million. There’s an expectation of an annual growth rate of 2.7% between 2022 and 2027.
This growth will be driven by the increase in the number of households with a pet, as shown below.
Pet Penetration (households with a pet)
- 2011: 62%
- 2020: 70%
There is a massive opportunity for pet franchises to expand!
Pet franchises do not dominate their industry, as is the case with franchise businesses in Pizza, Hair Salons and Auto Service/ Parts.
At Vetted Biz, we forecast Pet franchises to further penetrate their industry, taking away customers from large box retailers like Petco and Petsmart.
We will look at the top franchises in different categories, but first, let’s tabulate the data from the biggest pet franchises by unit count of Pet Supplies Plus, Dogtopia, Petland, Wild Birds, Camp Bow Wow, Dog Training Elite and Woof Gang Bakery.
Pet Franchises
| Franchise | Total Unit Count | Midpoint Investment | Average Unit Volume | Payback Period (in years) |
|---|---|---|---|---|
| Pet Supplies Plus | 603 | $ 989,535 | $ 2,765,000 | 3.5 – 5.5 |
| Dogtopia | 166 | $ 1,016,497 | $ 991,000 | 10 – 12 |
| Petland | 99 | $ 674,250 | $ 4,376,000 | 3 – 5 |
| Wild Birds | 352 | $ 240,713 | $ 785,000 | 3 – 5 |
| Camp Bow Wow | 186 | $ 1,293,000 | $ 881,000 | 13 – 17 |
| Dog Training Elite | 94 | $ 101,825 | $ 534,000 | 3 – 5 |
| Woof Gang Bakery | 139 | $ 217,850 | $ 665,000 | 2.5 – 4 |
While Pet Supplies Plus is slightly expensive, it promises strong returns and is the franchise with the most number of locations. Petland and Dogtopia are upcoming players in the industry that are on track for strong growth if they are able to improve current levels of revenue and reduce the initial investment level.
Dog Training Elite is one of the fastest growing pet franchises, but sales numbers are all over the place within their system. Some franchisees have turned their businesses into cash cows, while others are struggling to stay open based on their low unit volume per their FDD.
That said, Woof Gang Bakery has the best payback period in the industry. Woof Gang’s low capex model and high profit margins support single unit operators as well as operators seeking to grow 5+ units. Woof Gang could become the industry leader in the coming years if they continue the course.
