Bottom line
- Total investment $316K – $1.1M including a $50K franchise fee, 4.5% ongoing royalty.
- Average unit revenue of $2.9M/year (median $2.7M).
- Rated STRONG with a risk score of 51/100. SBA loan default rate of 0.0% across 175 loans (below the industry average).
Item 1 · who you're contracting with
The Franchisor
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 Petland unit return on the cash you put in?
Unlevered ROIC · per unit
74%
Above typical band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 Petland units return on equity?
Equity IRR · 5-yr
24.6%
3.00× MOIC
Year-1 DSCR
3.46×
EBITDA ÷ debt service
Equity required
$21.1M
on $37.3M purchase
Total debt
$16.2M
SBA $5.0M + senior + seller note
Overview
About
Petland franchisees operate retail stores selling puppies, kittens, small animals, and pet supplies to consumers. Daily operations include animal care/husbandry, customer sales, health/welfare documentation compliance, and inventory management. The business model relies on sourcing animals from breeders and wholesalers, managing live animal logistics, and navigating state/local animal welfare regulations.
Item 7 · what it costs
The Vitals
Item 19
Financial Performance
Item 20 · unit dynamics
The Growth Chart
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 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.
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
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.
Score breakdown · what drove the 51 / 100 rating
- 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
- 05MINORTiered royalty structure (4.5% then 2.25%) incentivizes rapid expansion over franchisee profitability
- 06MINORPet retail sector faces headwinds from online retailers (Chewy, Amazon) and big-box competitors (PetSmart, Petco)
- 07HIGHLitigation settlements indicate ongoing customer dissatisfaction and potential compliance issues with animal welfare standards
Severity inferred from the FDD text · not a regulatory classification
FDD Items 5, 6, 12, 17 · continued from Risk & Legal
Contract & Territory Detail
Item 11
Training & Operations
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
89 numbers
One-time purchase · CSV download · Validation questions included
FDD download
Petland · FDD (2025) PDF