Pet Supplies Plus Franchise Cost, Profit & Failure Rate 2024

Pet Supplies Plus is a pet store. It is a pet-supplying retailing corporation carrying a wide variety of natural and non-natural pet foods. It is one of the 10 Best Pet Services franchises of 2024 that you must own.

If you’re willing to extend your portfolio and get into franchising, then keep reading.

Here we have discussed some facts related to the Pet Supplies Plus franchise that will help you understand the company franchise policies.

Pet Supplies Plus Franchise

About Pet Supplies Plus

Pet Supplies Plus is aimed at making it more comfortable to get better products and services for your pet.

It not only supplies pet food but also offers several services like grooming and animal expertise, all at a great value, allowing its customers to spoil their pets even more.

Pet Supplies Plus was the largest pet food retailer store in the USA in the year 2005. They provide you with a customized store layout designed for your locations.

They also assist you with purchasing any specialized equipment needed. Their team will help you determine the best site in the selected trade area.


History Of Pet Supplies Plus

In 1988, Pet Supplies Plus was established by Harry Shallop and Jack Berry in Redford, Michigan.

For over three decades, Pet Supplies Plus has been the undisputed leader in the pet retail industry.

Its mission is to be America’s Favorite Neighborhood Pet store.

In 1991, Pet supplies plus began offering franchises, and currently, Pet Supplies Plus has more than 570 locations in 36 states of the USA.


Pet Supplies Plus Franchise Model

Cost Or FeesAmount
Initial Investment$455k – $1.5 Million
Franchise-Fee49,900
Liquidity$200,000
Royalty2% of monthly gross sales
Area RequirementN/A
Total Outlets570

Training & Support Of Pet Supplies Plus

Pet Supplies plus provide training to the franchisees. The initial training must be attended by two trainees, and completing the training is compulsory for satisfaction.

The training will be held at the franchisor’s corporate headquarters or any other locations they may designate.

The training will be no longer than 80 hours, but if the franchisees have no experience in retail management or the pet industry, they may require up to 160 hours of training.

The franchisees have the option to enroll in the training for pet grooming or other services. Franchises will have to pay the training tuition fee.


Term & Renewal Of Agreement

Pet supplies Term & Renewal Of Agreement

The actual length of the franchise term is ten years from the date the franchise agreement is signed.

Franchisees have the option to renew the term for two consecutive five-year periods if requirements are met with the terms & conditions and the store is in good standing and making revenue.


How Much Does A Pet Supplies Plus Franchise Make?

There are several elements that determine the profitability of the Pet Supplies Plus franchise.

Profit varies depending on the scope of the investment, expenses, and demand for the product.

According to sources, Pet Supplies Plus is a very profitable business with franchise owners generating gross sales of $2,765,000 a year on average.

So if we assume a profit margin of 18% as per the industry average, then we can find out that a Pet Supplies Plus franchise owner make estimated $497,700 in net profits on average.

Financial OverviewPercentage of RevenueAmount ($)
Individual Franchise Annual Revenue100%2765000.00
Rent10.25%(283412.50)
Insurance5.13%(141706.25)
Salaries20.50%(566825.00)
Franchise Royalty Fees5.13%(141706.25)
Utilities2.05%(56682.50)
Cost of Goods Sold (COGS)25.62%(708531.25)
Labor (Variable)13.33%(368436.25)
Total (Expenses)82.00%(2267300.00)
Net Profit18.00%497700.00

Note: The displayed expenses are estimates based on industry averages and standard costs. Actual expenses may vary due to factors like location, business size, and market conditions. We recommend conducting detailed research or consulting with a financial advisor for a tailored financial analysis.


Failure Rate Of Pet Supplies Plus

Franchised Outlets:

YearOutlets at the Start of the YearOutlets at the End of the YearNet Change
2020261302+41
2021302374+72
2022374429+55

For the Franchised outlets:

  • In 2020, the growth rate was (41)/261ร—100โ‰ˆ15.7%
  • In 2021, the growth rate was (72)/302ร—100โ‰ˆ23.8%
  • In 2022, the growth rate was (55)/374ร—100โ‰ˆ14.7%

Company-Owned Outlets:

YearOutlets at the Start of the YearOutlets at the End of the YearNet Change
2020218217-1
2021217229+12
2022229232+3

For the Company-Owned outlets:

  • In 2020, the failure rate was (1)/218ร—100โ‰ˆ0.45%
  • In 2021, the growth rate was (12)/217ร—100โ‰ˆ5.52%
  • In 2022, the growth rate was (3)/229ร—100โ‰ˆ1.31%

Total Outlets:

YearOutlets at the Start of the YearOutlets at the End of the YearNet Change
2020479519+40
2021519603+84
2022603661+58

For Total outlets:

  • In 2020, the growth rate was (40)/479ร—100โ‰ˆ8.35%
  • In 2021, the growth rate was (84)/519ร—100โ‰ˆ16.18%
  • In 2022, the growth rate was (58)/603ร—100โ‰ˆ9.61%

According to the above-mentioned data, we can see that the franchised outlets for Pet Supplies Plus grew from 2020 to 2022, showing a growth rate between 15.7% and 14.7%.

On the other hand, for company-owned outlets, the failure rate of Pet Supplies Plus in the year 2020 was 0.45%. Later the company started growing, showing a growth rate between 5.52% and 1.31%.

Overall, when we combine the data of franchise and company-owned outlets, we can see that the Pet Supplies Plus franchise has expanded in the years 2020-2022, showing a total growth rate between 8.35% and 9.61%.


Payback Period Of Pet Supplies Plus

With an investment of $1,500,000 and an estimated 18% profit margin on the average net sales of $2,765,000, the yearly profit would be $497,700.

So, to find out how long it will take to earn back the initial investment:

Payback Period = Investment / Yearly Profit = $1,500,000 / $497,700= 3 years

Based on these figures, it will take approximately 3 years to pay back the initial investment for Pet Supplies Plus. This time period could be longer or shorter depending on your sales, revenue, and profit figures.


Pet Supplies Plus Alternatives

CompanyPearle VisionWinzer
Founded In19611978
Initial Investment$415,000-$644,000$5950-$16,153
Franchise-Fee$20,000- $50,000$35,000
Liquidity$100,000$1,000
Total Outlet553287
Annual Revenue$1.2 million$42 million 

Frequently Asked Question

How many are Pet Supplies Plus Franchise locations there in the USA?

Pet Supplies Plus has more than 570 franchise locations in the USA.

Who founded Pet Supplies Plus?

Pet Supplies Plus was founded by Jack Berry Harry Shallop.

Are Pet supplies plus a Franchise?

Yes, Pet supplies plus is a privately held pet franchise store.

How much do the Pet supplies plus Franchise Cost?

To become an owner of a Pet Supplies Plus franchise, investors should expect to spend around $455k โ€“ $1.5 Million and an additional amount of $49,900 as a franchise fee.

Where is Pet Supplies Plus headquartered?

The headquarters of Pet Supplies Plus is located in Liovani, Miami.

Who owns Pet Supplies Plus?

In 2018, Pet Supplies Plus was acquired by Sentinel Capital Partners but later in 2021, Franchise Group Inc. acquired the company.

2 thoughts on “Pet Supplies Plus Franchise Cost, Profit & Failure Rate 2024”

    • Hi, Pet Supplies also sell other pet-related products and supplies and not just pet food. Maybe that’s how they are able to compete.

      Reply

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