FranchiseVerdict
Pet Evolution logo
FV-01929·MODERATEStandard76

Pet Evolution

OtherFranchising since 2021Website
Investment
$143K – $896K
49th pct Other
Avg revenue
50th pct Other
Royalty
Units
22
49th pct Other
SBA default
0.0%
vs <3% typical

Bottom line

  • Total investment $143K – $896K including a $13K franchise fee.
  • No Item 19 financial performance data disclosed — the franchisor chose not to publish revenue figures.
  • Rated MODERATE with a risk score of 66/100. SBA loan default rate of 0.0% across 36 loans (below the industry average).
  • System growing at 69.2% CAGR over 3 years with 22 total units — strong expansion trajectory.

Item 1 · who you're contracting with

The Franchisor

Legal entity
Pet Evolution Franchising LLC
Incorporated in
Delaware
HQ
330 Mill Bay South Suite 2101A, Afton, Minnesota 55001
Auditor
CliftonLarsonAllen LLP
Audited financials
Franchisor revenue
$679K
vs $1.3M prior year

Yale framework · single-unit ROIC

Returns Analysis

Pulls Item 7 (investment) and Item 19 (revenue) from this brand's FDD into the Yale unlevered-ROIC formula. Override any input to stress-test it against your own assumptions.

The model · Yale framework

What would one Pet Evolution unit return on the cash you put in?

Revenue · per unit, per year
$
Item 19 not disclosed — typing your own estimate
Franchisor take · royalty + ad fund
Royaltytyp 68%
%
Ad fundtyp 35%
%
Operating costs · category default: generic
COGS
%
Labor
%
Rent / occupancy
%
Other operating
%
Total invested capital · what you actually put in
Initial investment
$
FDD Item 7: $143K–$896K
Working capital
$
FDD reports $50K–$150K

Unlevered ROIC · per unit

17%

Below typical band (30–60%)

0%30–60% Yale band80%

Store EBITDA · annual
$105K
EBITDA margin
14.0%
Total invested
$619K
Payback
71 mo
Unit-level only. A multi-unit portfolio gives up roughly 5–15% of this to shared services (corporate G&A) before reaching the ~10-unit break-even Yale describes.

Overview

About

Pet Evolution franchisees operate pet retail/services locations offering grooming, boarding, training, retail products, or veterinary-adjacent services. Day-to-day operations involve managing staff, customer scheduling, inventory, compliance with health/safety codes, and marketing locally to drive foot traffic and recurring revenue.

CEO
Rian Thiele
Founded
2021
FDD year
2025
States available
14

Item 7 · what it costs

The Vitals

Total investment
$143K – $896K
All-in to open one unit
Liquid capital
$50K – $150K
Cash you must have on hand
Franchise fee
$13K
Royalty
n/d
Ad fund
n/d

Item 19

Financial Performance

This franchisor did not disclose financial performance representations in Item 19, or our extractor could not parse them.

Item 20 · unit dynamics

The Growth Chart

Total units
22
Opened
2
Last reporting year
Closed
1
Turnover rate
4.5%
Company-owned
0
Corporate units in the system
% franchised
100%
vs corporate-owned
Net growth (yr3)
+4.8%
Net unit change last year
3-yr CAGR
+69.2%
Compounded over last 3 years
2023
22+1
Franchised units
2024
21
Franchised units
2025
13
Franchised units

Year-over-year franchised unit counts and net change. Source: FDD Item 20.

Item 20 · 29 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).

AK
ME
VT
NH
MA
RI
CT
NY
NJ
PA
DE
MD
DC
WA
OR
CA
NV
ID
MT
WY
UT
CO
AZ
NM
ND
SD
NE
KS
OK
TX
MN
IA
MO
AR
LA
WI
IL
MS
TN
MI
IN
KY
AL
OH
WV
GA
VA
NC
SC
FL
HI
Registered · 29 states
Not registered

States derived from franchisee phone area codes (Item 20). Approximate — ported numbers may show the original state, not the franchisee's current location.

Government records

SBA Loan Data

Aggregated from SBA 7(a) loan disclosures, public data unique to FranchiseVerdict.

Total loans
36
Loan volume
Avg loan
Default rate
0.0%
vs <3% typical · system-wide
5-yr default

FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17

Risk & Legal

66
Risk · 0-100
MODERATE66 / 100

Pet Evolution presents high investment risk due to active fraud litigation, undisclosed financial metrics, stagnant unit growth, territorial vulnerability, and potential franchisor financial distress.

Score breakdown · what drove the 66 / 100 rating

  1. 01HIGHActive litigation alleging fraud, misrepresentation of sales/earnings, and violations of California Franchise Investment Law — indicates potential systemic disclosure failures
  2. 02MEDNo Item 19 (Financial Performance Representations) disclosed — unable to verify claimed profitability or validate investment ROI
  3. 03MINORMinimal unit growth (4.8% YoY on only 22 units) suggests weak franchisee recruitment, retention, or system health
  4. 04MINORWide investment range ($142.5K–$896K) with no corresponding revenue/profit disclosure creates opacity around actual unit economics
  5. 05MINORUnprotected territory exposes franchisees to cannibalization and competition from other franchisees and company-owned locations
  6. 06MINORUnknown royalty structure — unable to calculate true net margins; high upside fees could erode profitability
  7. 07HIGHGoing Concern = False — potential financial instability at franchisor level raises questions about support, technology, and brand viability

Severity inferred from the FDD text · not a regulatory classification

FDD Items 5, 6, 12, 17 · continued from Risk & Legal

Contract & Territory Detail

Territory
State or County
Protected territory
No
Initial term
10 years
Renewal term
10 years
Online sales rights
Restricted
Franchisor can compete
Yes
Hire a manager?
Not allowed
Litigation count
1
Right of first refusal
Yes
Franchisor can buy back on resale
Mandatory arbitration
No
Jury trial waiver
Yes
Non-compete
2 yrs
Post-termination restriction
Owner-operator
Required
Governing law
Minnesota

Item 11

Training & Operations

Classroom training
17 hrs
On-the-job training
0 hrs

Item 20

Franchisee Contacts

Phone numbers extracted directly from this brand's FDD Item 20. After purchase, you'll also receive a list of validation questions tailored to this brand.

Franchisee contacts

31 numbers

Locked
(646) 232-••••
NY
(401) 462-••••
RI
(502) 696-••••
KY

One-time purchase · CSV download · Validation questions included

FDD download

Pet Evolution · FDD (2025) PDF

Single-page checkout · instant download · CSV export of contacts available separately above