It’s no surprise that the dog daycare industry has grown every year for the past 20 years, and at an average rate of 5.4%. More than six out of ten American households own at least one pet, and American pet parents spend an average of $250 per year in boarding fees. Total annual expenditure on pet care exceeds $1000 per pet household. Statistics like these make dog daycare franchise opportunities attractive and lucrative for the right investor or entrepreneur.
Let’s examine some of the dog daycare information available to potential investors. We’ll take a peek at the industry’s details, dispel some myths about perceived barriers to franchising, and answer some of the most common questions we receive.
Dog Daycare Industry Facts
Pet ownership has risen sharply over the last decade, resulting in a corresponding boom in the pet grooming and boarding industry. Pet grooming and boarding is now a booming industry. American households with pets spend $90 billion on their pets annually, and the trend shows no sign of weakening.
Fully 75% of 30-somethings own a dog. And 40% or more of dog care customers come from the 30-49 year old demographic. While dog ownership is extremely common and popular in the elderly age groups, this rising young customer base speaks volumes about the potential for continued growth in the decades to come.
Myths and Misconceptions
Despite this growth, myths and misconceptions about the industry may persist.
Myth: Kennels and dog sitters have saturated the dog daycare market.
Don’t confuse growth with saturation. Starbucks franchising growth had an expansion impact on the coffee shop industry, not a saturation effect. Similar impacts are happening in the dog daycare portion of the pet grooming and boarding industry.
The continuing trends of increased dog ownership, higher pet spending, and healthy consumer attitudes about pet health and wellbeing mean this market is nowhere near saturated. Competition is an excellent sign for continued growth, not a warning of a crowded field.
Myth: You must be a dog expert to succeed in dog daycare franchise ownership.
The most important personal assets for dog daycare franchise success are vision, resiliency, and work ethic. You wouldn’t be reading this if you were not interested in dogs.
K9 Resorts franchising comes with training and access to our original owners – the real experts. You provide the hard work, vision, and grit.
Myth: I cannot buy in because I don’t have the full franchise fee in cash.
Franchisees often finance their franchise fees. Most franchise opportunities include assistance with securing financing. K9 Resorts has relationships with lenders who help our franchisees get started.
Misconception: Dog daycare franchise purchase requires immense wealth for entry.
Investors in any franchise opportunity, such as K9 Resorts, must have a minimum amount of liquid capital and net worth. These numbers, however, can be easily misunderstood.
Liquid capital includes readily convertible assets such as investments, savings, or other financial instruments. xLiquid capital of $200,000 does not necessarily mean a bank account balance of that amount. Net worth includes everything you own minus your debts. For most people, this includes houses, automobiles, investments, savings, business assets, etc.
Answers to Frequently Asked Questions
Here’s a look at the answers to the most popular questions about owning a dog daycare franchise.
What does the franchise fee cover?
Franchise fees pay for licensing and other support such as initial training, site selection assistance, and initial marketing.
What are royalties?
Royalties are paid to the parent company as a percentage of gross revenue and cover ongoing support to franchisees such as regional and national marketing campaigns, periodic training, new product development, and much more.
Do I need an outside yard or field to operate a dog daycare?
Some form of outdoor area for the dogs and staff is excellent. But successful dog daycare’s around the country make annual profits without access to grass and trees. It’s not a requirement.
This industry is still growing, and there’s no end in sight. Find out if the K9 Resorts dog daycare franchise opportunity is a good fit for you.