Pet Depot Franchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
Analysis by FranchiseVerdict Research · Methodology
Pet Depot is a pet retail franchise selling pet food, supplies, and accessories, sometimes with grooming or aquatics. Franchisees run the stores, managing inventory, merchandising, and customer service.
FranchiseVerdict summary · 2026
A PET DEPOT franchise requires a total initial investment of $293K – $822K, including a $45K franchise fee and an ongoing 5.0% royalty[2]. The 2022 FDD does not disclose unit-level revenue (no Item 19). FranchiseVerdict grade: C (Average), an editorial assessment, not investment advice. Run a live ROI scan →
Data last verified · figures per the 2022 FDD issuance
Overview
- Investment
- $293K – $822K
- 60th pct Pet Services
- Avg gross sales
- N/A
- Royalty
- 5.0%
- 7th pct Pet Services
- Units
- 29
- 58th pct Pet Services
- SBA charge-off
- N/A
Quick verdict · Pet Services · color = vs category peers
Green = favorable by >10% vs Pet Services avg · No shading = within ±10% · Red = unfavorable by >10% · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Bottom line
- COSTTotal investment $293K – $822K including a $45K franchise fee, 5.0% ongoing royalty.
- RETURNSFY2021 audited statements of income for Labrador Franchises, Inc. dba Pet Depot (fiscal year ended December 31, 2021). Revenues consist primarily of franchise royalties and franchise fees; reported as a single 'Revenues' line with no segment breakdown. Prior years: 2020 = $1,030,177, 2019 = $731,955.
- RISKVerdict C (Average), verdict score 43/100 (higher is better).
- DECLINESystem contracting at -6.9% CAGR over 3 years. Investigate whether closures are franchisor-driven (consolidation) or franchisee-driven (economics).
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- Labrador Franchises, Inc.
- Parent company
- null
- Ultimate parent
- Labrador II, Inc.
- CEO title
- President and CFO
- Roman D. Versch
- Founder active
- Yes
- Original founder still leading the business
- Incorporated in
- CA
- HQ
- 1941 Foothill Boulevard, Suite A, La Verne, California 91750
- Auditor
- GTL, LLP
- Audited financials
- Franchisor revenue
- $1.1M
- vs $1.0M prior year
Overview
About
- CEO
- Roman D. Versch
- Headquarters
- CA
- Founded
- 2001
- FDD year
- 2022
- States available
- 13
Can you afford it, and what does the money buy?
Entry cost runs 21% below the typical pet services franchise.
Source: FDD 2022 · Items 5–7
Full Item 7 breakdown58 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| Initial Franchise Fee (Retail Store/Grooming Salon) | $45K | $45K | |
| Training (Note 7) | $0 | $1K | |
| Real Estate costs and Leasehold Improvements (Notes 1 and 2) | $10K | $125K | |
| Engineering Fees (Note 2) | $5K | $25K | |
| Lease Review Fee | $0 | $3K | |
| Furniture & Fixtures (Note 3) | $60K | $150K | |
| Equipment (Note 4) | $25K | $75K | |
| Installation Services (Note 3) | $0 | $75K | |
| Signage | $8K | $20K | |
| Computer System (includes POS system and software) | $12K | $20K | |
| Technology Training and Setup | $0 | $12K | |
| Professional Fees | $4K | $8K | |
| Security Deposits and Permits | $2K | $20K | |
| Opening Inventory | $60K | $150K | |
| Insurance | $3K | $6K | |
| Uniforms | $1K | $2K | |
| Travel, lodging and other expenses for initial training program (Note 7) | $3K | $10K | |
| Grand Opening Advertising (Note 6) | $15K | $15K | |
| Additional Funds - for 3 months (Note 9) | $40K | $60K | |
| Initial Franchise Fee (Animal Hospital) | $45K | $45K | |
| Total initial investment | $712K | $2.2M |
Line items extracted from FDD Item 7. Ranges reflect the franchisor's stated low and high per line. Total is the sum of line-item lows / highs — actual costs may fall outside this range depending on market and build-out scope.
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $293K – $822K
- Middle of category vs category
- Liquid capital req'd
- $40K – $60K
- Bottom third — review vs category
- Franchise fee
- $45K – $45K
- Top 40% of category vs category
- Royalty
- 5.0%
- percentage · typical 6–8%
- Ad fund
- 2.0%
- typical 3–5%
- Total fee load
- 7.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 5.0% of gross sales |
| Marketing / ad fund | 2.0% of gross sales |
| Technology fee | $12K |
| Training fee | $1K |
| Transfer fee | $0 |
| Renewal fee | $0 |
| Inventory (initial) | $60K – $150K |
| Total fee load | 7.0% of rev |
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
PET DEPOT did not disclose financial performance in FDD Item 19. The ROIC and return models require Item 19 revenue. Without it all inputs are estimates. You can still run the calculator with your own assumptions by entering an expected revenue figure.
Returns model · single-unit ROIC
What would one PET DEPOT unit return on the cash you put in?
Unlevered ROIC · per unit
Estimated return on your total franchise investment, before any debt financing.
20%
Below the 30–60% attractive-franchise band
These models are for research and scenario planning only. Not investment advice. Actual results depend on your specific location, management, and market conditions. Consult a franchise attorney and accountant before signing any franchise agreement.
Item 19 · Source: 2022 FDD
Financial Performance
FY2021 audited statements of income for Labrador Franchises, Inc. dba Pet Depot (fiscal year ended December 31, 2021). Revenues consist primarily of franchise royalties and franchise fees; reported as a single 'Revenues' line with no segment breakdown. Prior years: 2020 = $1,030,177, 2019 = $731,955.
Operator outlook
What the numbers say
Data-driven interpretation of this brand's financial disclosures, fee structure, and system trajectory.
Fee burden
Total ongoing fee load of 7.0% — below the Pet Services average of 9.3%.
Disclosure
Franchisor chose not to disclose financial performance representations. You will need to gather unit economics directly from existing franchisees.
Operator retention
System contracting at -6.9% CAGR over 3 years. Investigate whether closures are franchisor-driven consolidation or franchisee exits.
Multi-unit rate
50% of franchisees own multiple units, a moderate multi-unit rate.
Source: FDD Item 19 financial performance representations and publicly filed FDD data. Past performance is not indicative of future results. Verify all figures with the franchisor and current franchisees before making any investment decision.
vs Pet Services averages
How Pet Depot Compares
Is the system healthy?
Source: FDD 2022 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 29
- Opened
- 1
- Last reporting year
- Closed
- 2
- Terminated
- 0
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 0
- Term expired, not renewed (per Item 20)
- Turnover rate
- 7.4%
- Company-owned
- 2
- Corporate units in the system
- % franchised
- 93%
- vs corporate-owned
- Multi-unit owners
- 50.0%
- Net growth (3-yr)
- -6.9%
- Net unit change over 3 years
- 3-yr CAGR
- -6.9%
- Compounded over last 3 years
3-year detail · Item 20
- Opened (3yr)
- 1
- Closed (3yr)
- 2
- Terminated (3yr)
- 0
- Non-renewed (3yr)
- 0
- Transfers (3yr)
- 0
- Reacquired (3yr)
- 0
- Franchisor bought back
- Projected new
- 1
- Franchisor's next-year forecast
- Ceased ops
- 6.9%
- Units that stopped operating
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 16 states with active franchisees
The Territory Map
Derived from franchisee contact records. Shows states with at least one current operator. Not where the franchisor is registered to sell new units (that data is re-extracting in a future refresh).
States derived from franchisee contact records (FDD Item 20). Shows states with at least one current operator on file. Full state registration data (Item 12) will appear on a future FDD refresh.
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
- Total loans
- 14
- Loan volume
- $7.2M
- Median loan
- $275K
- 50th percentile
- Charge-off rate
- N/A
- no resolved loans yet — rate needs a terminal outcome
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- N/A
- 5-yr charge-off
- N/A
- Loans approved 2021+
- Active lenders
- 9
- Defaults
- 1
- Typical loan rate
- 5.8%
- avg rate to borrowers
- Franchised industry avg
- 24.6%
- n=472 loans
- Jobs supported
- 165
- 2.9 per loan
- Lender concentration
- 42%
- top lender's share
Borrower mix: 33% went to startups / new businesses, 67% to established operators
Franchise vs independent — in pet and pet supplies stores, franchised businesses charge off at 24.6% vs 23.3% for independents — franchising is associated with 6% higher SBA default risk in this category.
Top lenders financing Pet Depot franchisees
Showing 3 of 9 lenders. The full breakdown — every lender, state distribution, interest rates & risk ratings — is in the SBA Lending Report below.
Explore lender portfolios on Bank Reports or regional data on State Reports.
Premium insight
SBA Lending Report
Deep-dive into Pet Depot's SBA lending history: lender network, geographic footprint, interest rates, and more.
SBA Lending Report
- Principal loss rate and NAICS industry benchmark
- 8 lenders with concentration factor
- Per-state charge-off rates across 7 states
- Startup risk premium and job creation velocity
- 7-year lending trend
Instant access. No subscription.
What could kill this investment?
Source: SBA 7(a) FOIA · FDD Items 3, 21
Risk analysis
FranchiseVerdict rating + FDD Items 3, 4, 8, 16, 21
Risk & Legal
Pet Depot exhibits high-risk characteristics: a contracting 29-unit system with zero financial transparency, unprotected territories, unclear going concern status, and a highly variable investment structure that obscures true costs and profitability.
Litigation (Item 3)
No litigation required to be disclosed.
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · GTL, LLP
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Supplier relationship · Items 8 & 16
- Franchisor sells you products: Yes
- Kickbacks from required suppliers: No
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
- Can negotiate own supplier terms: No
Score breakdown · what drove the 43 / 100 verdict
- 01MINORDeclining unit count (-3.6% YoY) indicates system contraction and potential market saturation or franchisee dissatisfaction
- 02MEDNo Item 19 financial disclosure (Avg Revenue/Net Income not disclosed) prevents accurate ROI modeling and suggests franchisor may be hiding poor unit economics
- 03MINORUnprotected territory creates direct competition risk; multiple franchisees in same area will cannibalize sales and reduce individual unit profitability
- 04HIGHGoing Concern status = False is ambiguous (should be True for healthy franchisor); potential financial instability of parent company threatens franchisee support
- 05MED5% royalty on undisclosed gross sales creates blind spot; unable to verify if 5% is competitive or if franchisees are actually profitable at that rate
- 06MED29 total units is extremely small system with limited brand recognition, economies of scale, or supply chain negotiating power
Severity inferred from the FDD text · not a regulatory classification
What are you signing up for?
Ongoing fees run about 7.0% of sales (royalty + ad fund), before rent and labor.
Source: FDD 2022 · Items 11, 12, 17
FDD Items 12, 15, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 10 years |
|---|---|
| Renewal term | 10 years |
| Allowed renewalsℹ | 2 |
| Territory type | none |
| Protected territory | No |
| Exclusive territoryℹ | No |
| Online sales rights | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Required |
| Non-compete (years)ℹ | 2 years |
| Non-compete (miles)ℹ | 10 mi |
| Right of first refusalℹ | Yes |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Mandatory arbitration | No |
| Arbitration location | La Verne, Los Angeles County, California |
| Jury trial waiver | No |
| Governing law | CA |
| Litigation count | 0 |
View Item 3 litigation summary
No litigation required to be disclosed.
Items 10, 11
Training & Operations
- Classroom training
- 40 hrs
- On-the-job training
- 45 hrs
- Training location
- Regional training locations, company-operated Stores in Southern California, approved franchised businesses, and franchisee's Store
- Ongoing training
- Required
- Time to open
- 3 mo
- From signing to launch
- Site selection
- Franchisee selects; franchisor approves
- Franchisor financing
- Not offered
- Item 10
- POS system
- Lightspeed (retail) / Day Smart (veterinary)
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Lightspeed (retail) / Day Smart (veterinary)
Item 20 · call current owners
Franchisee Contacts
33 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
PET DEPOT · FDD (2022) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a PET DEPOT franchise?
The total investment to open a PET DEPOT franchise ranges from $293K – $822K, with an initial franchise fee of $45K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do PET DEPOT franchise owners earn?
PET DEPOT does not disclose average franchise owner earnings in their FDD Item 19. Not all franchisors are required to make financial performance representations. We recommend asking existing franchisees directly about their financial experience.
What is Item 19 in the PET DEPOT FDD?
The FDD section where a franchisor may disclose financial performance of its outlets. Disclosure is optional and formats vary; figures are typically gross sales, which is revenue before expenses, not profit. FranchiseVerdict extracts these figures directly from the PET DEPOT FDD and qualifies whose outlets they describe.
What is PET DEPOT's franchise failure rate?
SBA 7(a) loan charge-off data is not available for PET DEPOT (fewer than 10 loans on file). Charge-off rates are one way to gauge franchise risk, but not all franchise loans go through the SBA program. We recommend reviewing turnover and closure data in the FDD and speaking with current franchisees.
How many PET DEPOT franchise locations are there?
As of their most recent FDD filing, PET DEPOT has 29 total units in the United States, including 27 franchised units and 2 company-owned units. 1 new units were opened in the latest reporting year.
Is PET DEPOT a good franchise to buy?
FranchiseVerdict rates PET DEPOT as a C-grade franchise with a verdict score of 43 out of 100 (higher is better), based on our analysis of investment costs, revenue data, SBA loan performance, and growth trends. Our rating is based solely on publicly available FDD and government data; we recommend speaking with current franchisees before making any investment decision. This is not investment advice.
Data sourced from public FDD filings and SBA 7(a) FOIA records. Not financial advice.
For franchisors
Are you the franchisor?
If you represent PET DEPOT, you can request corrections or provide updated information.
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Data extracted from public FDD filings and SBA 7(a) loan disclosures (FOIA). This information is provided for research purposes only and does not constitute financial, legal, or investment advice. Verify all figures with the franchisor's current Franchise Disclosure Document before making any investment decision.