Pet Depot Franchise Cost, Revenue & Review 2026
- Investment
- $293K – $822K
- Disclosed sales
- not disclosed
- SBA charge-off
- Limited · 14 loans
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]. This franchisor makes no financial performance representation in Item 19 of its FDD. Item 19 is voluntary under the FTC Franchise Rule, and this filing states that it makes none, so no revenue or earnings figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that. FranchiseVerdict grade: C (Average), an editorial assessment, not investment advice. Run a live ROI scan →
Sources, dates and evidence
FDD issued: · Data extracted: · Last cited check: · Staleness risk: high - issued more than two years ago
Evidence: strong✓ Investment (Item 7)✓ Item 19 status✓ Units and owners (Item 20)✓ SBA loan coverage✓ Litigation (Item 3)✓ Financial statements (Item 21)✓ Franchisor identityhow this is scored5 of 5 headline figures on this page cite a page of the filing.
Overview
- Investment
- $293K – $822K
- 57th pct Pet Services
- Avg gross sales
- N/A
- Royalty
- 5.0%
- 9th pct Pet Services
- Units
- 29
- 59th pct Pet Services
- SBA charge-off
- N/A
Quick verdict · Pet Services · color = vs category peers
Green = favorable by >10% vs Pet Services median · 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.
- RETURNSThis franchisor makes no financial performance representation in Item 19 of its FDD. Item 19 is voluntary under the FTC Franchise Rule, and this filing states that it makes none, so no revenue or earnings figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that.
- RISKVerdict C (Average), verdict score 43/100 (higher is better).
- GROWTHNegative: net -1 franchised outlets in the latest year (1 opened, 2 closed); 1 signed but not yet open (Item 20).
- 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.
- Ultimate parent
- Labrador II, Inc.
- FDD Item 1, page 7 of the 2022 FDD
- 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 70% above the typical pet services franchise.
Source: FDD 2022 · Items 5–7
Full Item 7 breakdown19 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| Initial Franchise Fee | $45K | $45K | |
| Training | $0 | $1K | |
| Real Estate costs and Leasehold Improvements | $10K | $125K | |
| Engineering Fees | $5K | $25K | |
| Lease Review Fee | $0 | $3K | |
| Furniture & Fixtures | $60K | $150K | |
| Equipment | $25K | $75K | |
| Installation Services | $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 connected with attending initial training program | $3K | $10K | |
| Grand Opening Advertising | $15K | $15K | |
| Additional Funds - for 3 months | $40K | $60K | |
| Total initial investment | $293K | $822K |
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%
- 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 makes no financial performance representation in Item 19 of its FDD - a voluntary item under the FTC Franchise Rule - so no unit revenue figures are disclosed. The return models need a revenue figure to start from, and the operating costs that turn gross sales into a profit are in no FDD. Enter your own and the calculator runs on your assumptions — nothing here is modelled until you do.
Returns model · single-unit ROIC
What would one PET DEPOT unit return on the cash you put in?
Illustrative category typicals — not sourced to any filing, survey or sample. Replace them with figures from franchisee validation calls before you rely on the output.
Unlevered ROIC · per unit
Your modelled return on total invested capital, before any debt financing.
—
An FDD discloses gross sales, not profit. We hold no sourced figure for annual revenue, COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
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
No financial performance representation
This franchisor makes no financial performance representation in Item 19 of its FDD. Item 19 is voluntary under the FTC Franchise Rule, and this filing states that it makes none, so no revenue or earnings figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that.
Item 20 of the FDD lists current and former franchisees; asking them directly is the standard way to fill this gap.
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% (near the Pet Services median).
Disclosure
This franchisor makes no financial performance representation in Item 19 of its FDD. Item 19 is voluntary under the FTC Franchise Rule, and this filing states that it makes none, so no revenue or earnings figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that. Item 20 of the FDD lists current and former franchisees; asking them directly is the standard way to fill this gap.
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 medians
How Pet Depot Compares
Category median of published Pet Services brands that report the figure; the middle half spans the 25th to 75th percentile and n counts the brands behind it. Medians are used because a few very large systems pull an average far from the typical brand. Revenue is disclosed gross sales, not profit.
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
- 6.9%
- 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
Last fiscal year · Item 20 exits and transfers
- Terminated
- 0
- Not renewed
- 0
- Signed, not yet open
- 1
- 0.03 per open outlet · Item 20 Table 5
- 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.
Where the owners are · Item 20 owner list
31 current owners across 16 states.
- MA 4
- VA 4
- CA 3
- FL 3
- AZ 2
- NJ 2
- TN 2
- TX 2
- WY 2
- IL 1
- KY 1
- LA 1
- +4 more states
Counts only, from the list the franchisor prints in Item 20; 2 entries carry no state. Names and phone numbers are for your own due diligence and are not shown here.
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
- Limited · 14 loans
- Limited SBA coverage: 14 loans, rate hidden until 10 have resolved and loans reach 2% of franchised units
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- Limited · 14 loans
- 5-yr charge-off
- Limited · 14 loans
- 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.
Lender network · 7(a) + 504
SBA Lending Report
Full lending analysis for Pet Depot from SBA 7(a) FOIA data.
- Principal loss rate
- 0.2%
- Avg SBA guarantee
- 69%
- Avg interest rate
- 5.79%
- Avg chargeoff amount
- $9K
- Lender concentration
- 41.7%
- Job velocity
- 2.9 per $100K
- NAICS benchmark
- 23.1%
- NAICS 453910
- Jobs supported
- 165
Top SBA lendersTop lender holds 42% of loans
| # | Lender | Loans | Volume | Default % |
|---|---|---|---|---|
| 1 | Wells Fargo Bank National Association | 5 | $3.6M | 25.0% |
| 2 | Live Oak Banking Company | 1 | $103K | 0.0% |
| 3 | Newtek Small Business Finance, Inc. | 1 | $333K | 0.0% |
| 4 | Enterprise Bank & Trust | 1 | $417K | 0.0% |
| 5 | East West Bank | 1 | $650K | 0.0% |
| 6 | BMO Bank National Association | 1 | $300K | N/A |
| 7 | Members Cooperative Credit Union | 1 | $260K | N/A |
| 8 | Fall River Five Cents Savings Bank d/b/a BankFive | 1 | $100K | 0.0% |
Geographic failure vector
| State | Loans | Defaults | Rate |
|---|---|---|---|
| AZArizona | 3 | 0 | 0.0% |
| CACalifornia | 2 | 1 | 50.0% |
| MAMassachusetts | 2 | 0 | 0.0% |
| TNTennessee | 2 | 0 | 0.0% |
| LALouisiana | 1 | 0 | 0.0% |
| MNMinnesota | 1 | 0 | -- |
| VAVirginia | 1 | 0 | 0.0% |
SBA 7(a) lending trend
Borrower profile
Source: SBA 7(a) + 504 FOIA loan-level data, matched by FranchiseVerdict
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)
Subject: officers or affiliates. The franchisor is not a named party in these cases.
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)
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.
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
- 04MED5% royalty on undisclosed gross sales creates blind spot; unable to verify if 5% is competitive or if franchisees are actually profitable at that rate
- 05MED29 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 | No territory protection |
| 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
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 makes no financial performance representation in Item 19 of its FDD - a voluntary item under the FTC Franchise Rule - so no unit revenue figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that. Item 20 of the FDD lists current and former franchisees; asking them directly is the standard way to fill this gap.
Who owns PET DEPOT?
PET DEPOT is franchised by Labrador Franchises, Inc.. The ultimate parent named in the FDD is Labrador II, Inc.. Source: FDD Item 1, 2022 filing.
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). The grade is a deterministic score built from six weighted dimensions — financial health, unit economics, unit growth, scale, legal, and transparency — then calibrated against SBA loan charge-off rates and FDD age. Transparency is one of the six, so a filing that discloses less scores lower on that dimension than one that discloses more. 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?
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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.