Hounds Town USA Franchise FDD, Profits & Costs (2025)

Hounds Town USA is a dog daycare and boarding franchise that has made a name for itself in the pet care industry. Established in 2001 in Ronkonkoma, New York, the company operates from its headquarters in Smithtown, New York, and began franchising in 2008.
The franchise offers comprehensive pet care services, including dog daycare, overnight boarding, and grooming.
Hounds Town USA distinguishes itself with a distinctive approach to pet care, prioritizing a play-focused environment. Dogs are encouraged to interact and engage in natural, social behaviors, which helps minimize stress and contributes to the pets’ overall well-being.
Another standout feature is Hounds Town USA’s transparent, all-inclusive pricing structure. Unlike many competitors, all services are included without any hidden fees.
Initial Investment
How much does it cost to start a Hounds Town USA franchise? It costs on average between $542,000 – $1,059,000 to start a Hounds Town USA franchised facility.
This includes costs for construction, equipment, supplies, and initial operating expenses. The total investment varies based on several factors, such as the size of the facility, the location, and whether the franchisee opts to lease or purchase the property.
Type of Expenditure | Amount |
---|---|
Initial Franchise Fee | $49,000 |
Launch Fee | $30,000 |
Pre-Opening Marketing Package | $15,000 |
Annual Reunion Fee | $1,875 to $2,250 |
Microsite and Social Media Setup | $300 |
Financial Training Access | $300 |
Training Expenses | $3,000 to $10,000 |
Pre-Opening Lease Payments | $0 to $50,000 |
Furniture, Fixtures and Equipment | $30,500 to $50,000 |
Leasehold Improvements | $325,000 to $675,000 |
Architect Fees | $6,500 to $15,000 |
Site Survey | $1,500 |
Concept Design | $2,500 |
Security and Utility Deposits | $7,000 to $10,000 |
Opening Inventory | $500 to $5,000 |
Post-Opening Marketing | $15,000 to $25,000 |
Business Licenses & Permits | $200 to $2,500 |
Logo Gear and Uniforms | $1,000 to $3,000 |
Signage | $3,000 to $12,000 |
Insurance | $2,100 to $4,000 |
Computer Hardware | $2,500 |
POS Setup Fee | $299 |
POS Fee – 3 months | $900 |
Pre-Opening Technology Fees | $752 to $876 |
Closed-Circuit Camera Systems | $10,000 to $20,000 |
Professional Fees | $2,500 to $6,000 |
Vehicle Lease, Signage, Insurance | $0 to $5,000 |
Bookkeeping Services | $900 |
Additional Funds – 3 Months | $30,000 to $60,000 |
Total Estimated Initial Investment | $542,126 to $1,058,825 |
Average Revenue (AUV)
How much revenue can you make with a Hounds Town USA franchise? A Hounds Town USA franchised business makes on average $579,000 in revenue (AUV) per year.
Here is the extract from the Franchise Disclosure Document:
This compares to $579,000 yearly revenue for similar pet sitting franchises. Below are a few Hounds Town USA competitors as a comparison:
Hounds Town USA Franchise Disclosure Document
Frequently Asked Questions
How many Hounds Town USA locations are there?
As of the latest data, Hounds Town USA operates over 100 locations across the United States, including both company-owned and franchise-owned facilities. These locations offer services such as dog daycare, overnight boarding, grooming, and pet taxi services.
What is the total investment required to open a Hounds Town USA franchise?
The total investment required to open a Hounds Town USA franchise ranges from $542,000 to $1,059,000.
What are the ongoing fees for a Hounds Town USA franchise?
Hounds Town USA franchisees are required to pay an ongoing royalty fee of 6% of their gross sales. Additionally, they contribute 2% of their gross sales to the Brand Fund for national marketing efforts.
Franchisees must also meet local advertising expenditure requirements, which vary based on the number of months in operation:
- 4-12 months: $5,000 per month
- 13-36 months: $4,000 per month
- 37+ months: 2% of gross sales
These fees support both national and local marketing initiatives to promote the Hounds Town USA brand.
What are the financial requirements to become a Hounds Town USA franchisee?
To qualify as a Hounds Town USA franchisee, candidates should have a minimum net worth of $500,000 and at least $250,000 in liquid capital. These financial prerequisites ensure that potential franchise owners possess the necessary resources to support the initial investment and ongoing operational costs associated with establishing and running a Hounds Town USA franchise.
How much can a Hounds Town USA franchise owner expect to earn?
The average gross sales for a Hounds Town USA franchise are approximately $0.58 million per location. Assuming a 15% operating profit margin, $0.58 million yearly revenue can result in $87,000 EBITDA annually.
Who owns Hounds Town USA?
Hounds Town USA is a privately held company founded by Michael S. Gould, a former NYPD canine handler. The company is currently led by CEO Jackie Bondanza, who has been instrumental in expanding the franchise nationwide.
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