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 ExpenditureAmount
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:

Hounds Town USA fdd item 19 extract

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 competitors

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.

Disclaimer

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