Pet DepotFranchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
FranchiseVerdict summary · 2026
A PET DEPOT franchise requires a total initial investment of $178K – $914K, including a $45K franchise fee and an ongoing 5.0% royalty[2]. The 2022 FDD does not disclose unit-level revenue (no Item 19). SBA 7(a) loans show a 11.1% charge-off rate across 14 loans[1]. Verdict grade: D. Run a live ROI scan →
Data last verified June 21, 2026 · figures per the 2022 FDD issuance
Overview
- Investment
- $178K – $914K
- 45th pct Pet Services
- Avg gross sales
- N/A
- 61st pct Pet Services
- Royalty
- 5.0%
- 9th pct Pet Services
- Units
- 29
- 51st pct Pet Services
- SBA default
- 11.1%
- system-wide median varies by category
Quick verdict · Pet Services · color = vs category peers
Green = >15% above Pet Services avg · No shading = within ±15% · Red = >15% below avg · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Bottom line
- Total investment $178K – $914K including a $45K franchise fee, 5.0% ongoing royalty.
- No Item 19 financial performance data disclosed. The franchisor chose not to publish revenue figures.
- Verdict D (Below Average) with a risk score of 70/100. SBA loan charge-off rate of 11.1% across 14 loans (above the 16% franchise average, based on all SBA 7(a) franchise lending, 2010–2024).
- System 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
- Legal entity
- Labrador Franchises, Inc.
- Parent company
- null
- Ultimate parent
- Labrador II, Inc.
- CEO title
- President and Director
- 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
- $1.0M
- vs $1.1M prior year
Overview
About
Pet Depot franchisees operate retail pet supply stores, managing inventory of food, toys, grooming supplies, and pet care products. Day-to-day operations include customer service, staff management, merchandising, and potentially ancillary services like basic grooming or pet training classes. Franchisees must maintain brand standards and comply with franchisor purchasing requirements while remitting 5% of gross sales as royalties.
- CEO
- Roman D. Versch
- Headquarters
- CA
- Founded
- 2001
- FDD year
- 2022
- States available
- 13
FDD Item 7 · 2022 filing · 58 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
- $178K – $914K
- Near category avg vs category
- Liquid capital req'd
- $10K – $60K
- Better than avg vs category
- Franchise fee
- $45K – $45K
- Better than avg vs category
- Royalty
- 5.0%
- Gross Sales · 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 | $500 |
| Transfer fee | $45K |
| Renewal fee | $11K |
| Total fee load | 7.0% of rev |
Financial Performance
This franchisor did not disclose financial performance representations in Item 19, or our extractor could not parse them.
vs Pet Services averages
How Pet Depot Compares
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 (yr3)
- -3.6%
- Net unit change last year
- 3-yr CAGR
- -6.9%
- Compounded over last 3 years
3-year detail · Item 20
- Transfers (3yr)
- 0
- 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 · 27 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
- 11.1%
- rates vary by category · see methodology
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- 88.9%
- 5-yr charge-off
- 0.0%
- Loans approved 2021+
- Active lenders
- 9
- Defaults
- 1
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.
Risk analysis
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
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 70 / 100 rating
- 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
- 03MINORWide investment range ($177.5K–$913.5K) with no clarity on what drives 5x variance, indicating inconsistent site costs or hidden expenses
- 04MINORUnprotected territory creates direct competition risk; multiple franchisees in same area will cannibalize sales and reduce individual unit profitability
- 05HIGHGoing Concern status = False is ambiguous (should be True for healthy franchisor); potential financial instability of parent company threatens franchisee support
- 06MED5% royalty on undisclosed gross sales creates blind spot; unable to verify if 5% is competitive or if franchisees are actually profitable at that rate
- 07MED29 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
FDD Items 5, 6, 12, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 10 years |
|---|---|
| Renewal term | 10 years |
| Allowed renewalsℹ | 2 |
| Protected territory | No |
| Online sales rights | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Optional |
| 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 |
| Jury trial waiver | Yes |
| Governing law | California |
| 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
- 131 hrs
- Training location
- Franchisor location and on-site at franchisee's restaurant
- POS system
- Lightspeed / Day Smart
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Lightspeed / Day Smart
Item 20 · call current owners
Franchisee Contacts
49 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 $178K – $914K, 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 PET DEPOT's franchise failure rate?
Based on SBA 7(a) loan data, PET DEPOT has a charge-off rate of 11.1% across 14 loans, meaning 11.1% of franchise loans were charged off. Charge-off rates are one proxy for franchise risk, though they do not capture all closures. This data comes from FOIA-sourced SBA lending records.
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 D-grade franchise with a risk score of 70 out of 100, 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.
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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.