Petland Franchise Cost, Revenue & Review 2026
- Investment
- $316K – $1.1M
- Disclosed sales
- $2.9M
- gross sales, not profit
- SBA charge-off
- 41.6%
- on 220 loans
Data from FDD filing + SBA 7(a) records
Analysis by FranchiseVerdict Research · Methodology
Petland is a pet-retail franchise selling pets, puppies, small animals, and fish, plus pet food and supplies. Franchisees run stores managing animal care, retail sales, and inventory.
FranchiseVerdict summary · 2026
A Petland franchise requires a total initial investment of $316K – $1.1M, including a $50K franchise fee and an ongoing 4.5% royalty[2]. Per the 2025 FDD, average unit revenue was $2.9M[2]. SBA 7(a) loans show a 41.6% charge-off rate across 220 loans[1]. FranchiseVerdict grade: D (Below 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: medium - issued 12 to 24 months ago; a newer filing is likely on file
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 scored8 of 8 headline figures on this page cite a page of the filing.
Overview
- Investment
- $316K – $1.1M
- 65th pct Pet Services
- Avg gross sales
- $2.9M
- 37th pct Pet Services
- Royalty
- 4.5%
- 6th pct Pet Services
- Units
- 91
- 78th pct Pet Services
- SBA charge-off
- 41.6%
- % of SBA 7(a) loans not repaid · median varies by category
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 $316K – $1.1M including a $50K franchise fee, 4.5% ongoing royalty.
- RETURNSAverage unit revenue of $2.9M/year (median $2.7M).
- RISKVerdict D (Below average), verdict score 31/100 (higher is better). SBA loan charge-off rate of 41.6% across 220 loans (well above the 16% franchise average, based on all SBA 7(a) franchise lending, 2010–2025).
- GROWTHPositive: net +3 franchised outlets in the latest year (6 opened, 3 closed); 8 signed but not yet open (Item 20).
- DECLINESystem contracting at -6.7% 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
- Petland, Inc.
- CEO title
- President, Chief Executive Officer and Board Director
- Joe Watson
- Incorporated in
- OH
- HQ
- 250 Riverside Street, P.O. Box 1606, Chillicothe, Ohio 45601-5606
- Auditor
- Brixey & Meyer, Inc.
- Audited financials
- Franchisor revenue
- $55.6M
- vs $67.0M prior year
Overview
About
- CEO
- Joe Watson
- Headquarters
- OH
- Founded
- 1967
- FDD year
- 2025
- States available
- 23
Can you afford it, and what does the money buy?
Entry cost runs 113% above the typical pet services franchise.
Source: FDD 2025 · Items 5–7
Full Item 7 breakdown19 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| Initial Franchise Feenot refundable | $50K | $50K | |
| Area Development Feenot refundable | — | — | |
| Real Property | — | — | |
| Furniture, Fixtures, Equipment and P.O.S. System | $60K | $350K | |
| Remodeling, Leasehold Improvements and Decorating Costs | $15K | $250K | |
| Inventory Required to Begin Operation | $75K | $200K | |
| Utility Security Deposits | $0 | $6K | |
| Lease Deposit | $0 | $20K | |
| Advertising Associated with Store Opening | $5K | $20K | |
| General Liability, Casualty and Other Insurance | $8K | $18K | |
| Additional Funds - 3 Months | $45K | $100K | |
| Travel, Room and Board to Attend Initial Training Program | $2K | $5K | |
| Construction Plans and Specifications | $15K | $15K | |
| Site Work, Fixture Coordination, and Construction Services Fee | $13K | $13K | |
| Store Merchandising and Set Up Assistance Fee | $13K | $13K | |
| On-Site Training Team and Grand Opening Assistance | $13K | $13K | |
| Licenses and Fees | $500 | $2K | |
| Uniforms | $1K | $2K | |
| Professional Fees | $2K | $5K | |
| Total initial investment | $316K | $1.1M |
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
- $316K – $1.1M
- Middle of category vs category
- Liquid capital req'd
- $45K – $100K
- Bottom third — review vs category
- Franchise fee
- $50K – $50K
- Middle of category vs category
- Royalty
- 4.5%
- Tiered by sales volume · typical 6–8%
- Ad fund
- 0.5%
- typical 3–5%
- Total fee load
- 5.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 4.5% of gross sales |
| Marketing / ad fund | 0.5% |
| Technology fee | $129 |
| Transfer fee | $25K |
| Renewal fee | $0 |
| Inventory (initial) | $75K – $200K |
| Total fee load | 5.0% of rev |
A 5.0% total fee load is unusually lean. More of each revenue dollar stays with the franchisee.
What do units actually make?
Average unit sales run 376% above the pet services norm.
Source: FDD 2025 · Item 19
Single-unit · not modelled
Returns at a glance
An FDD discloses gross sales, not profit, and the operating costs that turn one into the other are in no filing. We publish no modelled return for Petland until someone supplies them — yours, in the models below.
—
Not modelled yet
An FDD discloses gross sales, not profit. We hold no sourced figure for 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.
Total invested capital · disclosed
$771K
Item 7 initial investment plus working capital, as filed — the one figure here that needs no assumption.
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
What one unit earns on your invested capital
Model A · Single-Unit Return
Computes unlevered return on invested capital (ROIC) for a single franchise unit, read against the 30–60% reference band · Yale SOM, Post-MBA Path Exhibit 2 (2023). Below that band a passive index fund likely outperforms; above it the franchisor has pricing power you're subsidizing.
Note: Item 19 revenue is what the franchisor discloses, and it is the top line only — gross sales are not profit. No FDD discloses the operating costs that turn one into the other, so those fields start empty and nothing is modelled until you supply them from your own lease quote, labor market and build-out budget.
Returns model · single-unit ROIC
What would one Petland 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 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.
What 25 units return when you use SBA financing
Model B · Return on Equity: Debt-Financed Acquisition
Models a 25-unit portfolio acquisition financed with an SBA 7(a) loan. Shows equity IRR (your return on cash invested), DSCR (how safely the cash flow covers debt service), and the capital stack (SBA + seller + equity breakdown).
This is the “search fund” or “entrepreneurship through acquisition” scenario: you buy an existing multi-unit operator, use leverage to amplify returns, and either operate or hire management. The 25-unit size is the typical minimum for an SBA-backed franchise portfolio acquisition to pencil as a full-time income.
What “return on equity” means here: if you put in $500K of your own cash and the business generates enough EBITDA to pay down debt and grow, your equity IRR is the annual return on that $500K, including the value created when you eventually sell. Target IRR for a search fund is typically 25–35%.
Not modelled yet
An FDD discloses gross sales, not profit. We hold no sourced figure for 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.
A 25-unit return is built on a per-unit EBITDA. Fill in the operating costs in Model A above and this model runs on that figure, or take the whole scenario to the full ROI workbench, where the portfolio and LBO models accept your own per-unit economics directly.
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: 2025 FDD
Financial Performance
- Avg gross sales
- $2.9M
- Per unit, per year
- Median gross sales
- $2.7M
Gross sales are revenue before expenses — not profit. Actual owner earnings depend on rent, labor, royalties, marketing fees, and debt service.
- Item 19 type
- gross sales ranges with averages
- Sample size
- 65 outlets
- vs category median 12 · large
- Range (low → high)
- $545K→$8.3MCited, not corroborated — printed on page 80 of the 2025 FDD. Nothing else in our record independently restates or re-derives it.
- Cohort dispersion (min → max)
- Reporting year
- 2024
- Fiscal year the figures cover
- Source filing
- FDD 2025
- Disclosed in the 2025 filing, covering 2024
- Transparency
- 4 / 10
- vs category median 4 / 10 · typical
Compared against 69 Pet Services brands
Revenue is 4.1x the investment midpoint. At typical franchise margins, this suggests a payback under 3 years.
Operator outlook
What the numbers say
Data-driven interpretation of this brand's financial disclosures, fee structure, and system trajectory.
Unit economics
Average unit generates $2.9M/year in gross sales. Revenue-to-investment ratio: 4.1x.
Fee burden
Total ongoing fee load of 5.0% — below the Pet Services median of 8.0%.
Disclosure
Transparency score 4/10 — this franchisor discloses detailed breakdowns (quartiles, segments, or cohort data). Buyers can model unit economics with higher confidence.
Operator retention
System contracting at -6.7% CAGR over 3 years. Investigate whether closures are franchisor-driven consolidation or franchisee exits.
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 Petland 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 2025 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 91
- Opened
- 6
- Last reporting year
- Closed
- 3
- Turnover rate
- 3.3%
- Company-owned
- 21
- Corporate units in the system
- % franchised
- 77%
- vs corporate-owned
- Net growth (3-yr)
- +4.5%
- Net unit change over 3 years
- 3-yr CAGR
- -6.7%
- Compounded over last 3 years
Last fiscal year · Item 20 exits and transfers
- Signed, not yet open
- 8
- 0.09 per open outlet · Item 20 Table 5
- Projected new
- 1
- Franchisor's next-year forecast
- Ceased ops
- 6.5%
- Units that stopped operating
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 25 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
89 current owners across 25 states.
- OH 21
- FL 9
- TX 8
- MO 6
- GA 5
- IN 4
- KS 4
- PA 4
- TN 4
- IL 3
- KY 3
- AR 2
- +13 more states
Counts only, from the list the franchisor prints in Item 20. 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
- 220
- Loan volume
- $134.5M
- Median loan
- $414K
- 50th percentile
- Charge-off rate
- 41.6%
- on 220 loans · 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)
- 58.4%
- 5-yr charge-off
- 0.0%
- Loans approved 2021+
- Active lenders
- 60
- Defaults
- 72
- Typical loan rate
- 6.0%
- avg rate to borrowers
- Franchised industry avg
- 24.6%
- brand above franchise avg ↑
- Jobs supported
- 1,959
- 2.7 per loan
- Lender concentration
- 14%
- top lender's share
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.
Vintage analysis
Petland charge-off rate by loan vintage
Top lenders financing Petland franchisees
Showing 3 of 60 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 Petland from SBA 7(a) FOIA data.
- Principal loss rate
- 31.6%
- Avg SBA guarantee
- 75%
- Avg interest rate
- 5.96%
- Avg chargeoff amount
- $317K
- Lender concentration
- 14.5%
- Job velocity
- 2.7 per $100K
- NAICS benchmark
- 23.1%
- NAICS 453910
- Jobs supported
- 1,959
Top SBA lendersTop lender holds 14% of loans
| # | Lender | Loans | Volume | Default % |
|---|---|---|---|---|
| 1 | Comerica Bank | 24 | $12.8M | 54.2% |
| 2 | Northeast Bank | 14 | $9.1M | 78.6% |
| 3 | Wells Fargo Bank National Association | 12 | $6.5M | 30.0% |
| 4 | Business Lenders, LLC | 12 | $8.8M | 66.7% |
| 5 | First-Citizens Bank & Trust Company | 9 | $3.7M | 66.7% |
| 6 | PNC Bank, National Association | 8 | $1.8M | 12.5% |
| 7 | KeyBank National Association | 7 | $2.0M | 57.1% |
| 8 | Readycap Lending, LLC | 6 | $1.5M | 16.7% |
| 9 | Simmons Bank | 6 | $3.3M | 83.3% |
| 10 | BMO Bank National Association | 5 | $1.6M | 40.0% |
Geographic failure vector
| State | Loans | Defaults | Rate |
|---|---|---|---|
| OHOhio | 35 | 15 | 42.9% |
| FLFlorida | 21 | 7 | 35.0% |
| ILIllinois | 16 | 8 | 50.0% |
| TXTexas | 13 | 6 | 46.2% |
| KSKansas | 11 | 7 | 63.6% |
| MOMissouri | 11 | 5 | 50.0% |
| GAGeorgia | 7 | 2 | 33.3% |
| NVNevada | 5 | 2 | 40.0% |
| PAPennsylvania | 5 | 2 | 40.0% |
| INIndiana | 4 | 2 | 50.0% |
SBA 7(a) lending trend
Source: SBA 7(a) + 504 FOIA loan-level data, matched by FranchiseVerdict
A 41.6% charge-off rate means roughly 1 in 2 franchisees failed to repay their SBA loan. Investigate what changed.
What could kill this investment?
SBA loans charge off at 41.6% — 160% above the 16.0% national norm, i.e. higher lender-observed risk.
Source: SBA 7(a) FOIA · FDD Items 3, 21
Risk analysis
FranchiseVerdict rating + FDD Items 3, 4, 8, 16, 21
Risk & Legal
Petland presents elevated risk due to undisclosed profitability metrics, persistent litigation related to core business (pet sales), slow system growth, and structural headwinds in pet retail.
Litigation (Item 3)
Subject: the franchisor is a named party (defendant).
Six concluded cases, all involving customer complaints about pets purchased from Petland corporate or franchised stores (sick/behavioral issues). All settled confidentially. No pending claims or material civil actions.
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Brixey & Meyer, Inc.
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Consolidated total revenues for Petland, Inc. and Subsidiaries comprise company store retail sales, royalties, franchise operations, national advertising fund, and veterinarian services. FY2024 (year ended Dec 31, 2024) = $55,639,645; FY2023 = $67,026,166; FY2022 = $75,773,761.
ⓘ These are the parent company's consolidated financials (the parent guarantees the franchisor), not this brand's standalone results — the figure reflects the whole corporate group, not this brand alone.
Supplier relationship · Items 8 & 16
- Franchisor sells you products: Yes
- Kickbacks from required suppliers: Yes
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
- Can negotiate own supplier terms: No
Score breakdown · what drove the 31 / 100 verdict
- 01MEDNo average net income disclosed in FDD Item 19 — cannot validate actual profitability against $315K-$1.08M investment
- 02HIGHChronic litigation involving fraud, consumer protection violations, and breach of contract claims — reputational and operational risk
- 03MINORSlow unit growth at 4.5% YoY with only 91 units suggests market saturation, franchisee struggles, or brand deterioration
- 04MEDHigh initial investment ($315K minimum) coupled with undisclosed net income creates poor ROI transparency
- 05MINORPet retail sector faces headwinds from online retailers (Chewy, Amazon) and big-box competitors (PetSmart, Petco)
- 06HIGHLitigation settlements indicate ongoing customer dissatisfaction and potential compliance issues with animal welfare standards
Severity inferred from the FDD text · not a regulatory classification
What are you signing up for?
Ongoing fees run about 5.0% of sales (royalty + ad fund), before rent and labor.
Source: FDD 2025 · Items 11, 12, 17
FDD Items 12, 15, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 20 years |
|---|---|
| Renewal term | 20 years |
| Allowed renewalsℹ | 1 |
| Territory type | Protected territory |
| Protected territory | Yes |
| Exclusive territoryℹ | No |
| Territory population | 25,000 |
| Online sales rightsℹ | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Optional |
| Non-compete (years)ℹ | 3 years |
| Non-compete (miles)ℹ | 25 mi |
| Right of first refusalℹ | Yes |
| Transfer requires consent | Yes |
| Termination notice | 10 days |
| Curable defaultsℹ | 6 |
| Mandatory arbitration | Yes |
| Arbitration location | Columbus or Chillicothe, Ohio |
| Jury trial waiver | Yes |
| Governing law | OH |
| Litigation count | 6 |
View Item 3 litigation summary
Six concluded cases, all involving customer complaints about pets purchased from Petland corporate or franchised stores (sick/behavioral issues). All settled confidentially. No pending claims or material civil actions.
Items 10, 11
Training & Operations
- Classroom training
- 55 hrs
- On-the-job training
- 100 hrs
- Training location
- Chillicothe, OH and franchisee's store
- Ongoing training
- Required
- Time to open
- 18 mo
- From signing to launch
- Franchisor financing
- Not offered
- Item 10
Items 5 & 11
Franchisor Support
Item 20 · call current owners
Franchisee Contacts
89 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 Petland franchise?
The total investment to open a Petland franchise ranges from $316K – $1.1M, with an initial franchise fee of $50K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Petland franchise owners earn?
According to Item 19 of the Petland FDD, the average gross sales per unit is $2.9M. The median is $2.7M. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
Who owns Petland?
Petland is franchised by Petland, Inc.. The FDD names no parent company. Source: FDD Item 1, 2025 filing.
What is Item 19 in the Petland 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 Petland FDD and qualifies whose outlets they describe.
What is Petland's franchise failure rate?
Based on SBA 7(a) loan data, Petland has a charge-off rate of 41.6% across 220 loans, meaning 41.6% 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 Petland franchise locations are there?
As of their most recent FDD filing, Petland has 91 total units in the United States, including 70 franchised units and 21 company-owned units. 6 new units were opened in the latest reporting year.
Is Petland a good franchise to buy?
FranchiseVerdict rates Petland as a D-grade franchise with a verdict score of 31 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
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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.