PetlandFranchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
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]. Verdict grade: D. Run a live ROI scan →
Data last verified June 21, 2026 · figures per the 2025 FDD issuance
Overview
- Investment
- $316K – $1.1M
- 64th pct Pet Services
- Avg gross sales
- $2.9M
- 58th pct Pet Services
- Royalty
- 4.5%
- 8th pct Pet Services
- Units
- 91
- 73rd pct Pet Services
- SBA default
- 41.6%
- 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
Each dollar invested generates 4.1x in gross revenue, well above the typical 1.5-2.5x range.
41.6% of SBA loans charged off across 220 loans, above the 16% franchise average.
Franchising since 1972. Systems this mature have refined operations and brand recognition.
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).
- Verdict D (Below Average) with a risk score of 75/100. 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, 2010–2024).
Item 1 · who you're contracting with
The Franchisor
- Legal entity
- Petland, Inc.
- Incorporated in
- OH
- HQ
- 250 Riverside Street, Chillicothe, Ohio 45601-5606
- Auditor
- Brixey & Meyer, Inc.
- Audited financials
- Franchisor revenue
- $67.0M
- vs $55.6M prior year
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.
- CEO
- Joe Watson
- Headquarters
- OH
- Founded
- 1967
- FDD year
- 2025
- States available
- 23
FDD Item 7 · 2025 filing · 19 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.
Single-unit · estimated
Returns at a glance
Indicative numbers using FDD Item 7 / Item 19 inputs and category-benchmarked cost ratios. Full single-unit, 25-unit portfolio, and LBO models (with every input editable to stress-test your own scenario) live on the financials page.
Store EBITDA · annual
$516K
18.0% margin
Unlevered ROIC
67%
EBITDA / total invested capital
Payback
18 mo
cash-on-cash, unlevered
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $316K – $1.1M
- Near category avg vs category
- Liquid capital req'd
- $45K – $100K
- Below avg, review vs category
- Franchise fee
- $50K – $50K
- Near category avg vs category
- Royalty
- 4.5%
- Gross Revenues · 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% of gross sales |
| Technology fee | $129 |
| Transfer fee | $25K |
| Renewal fee | $0 |
| 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.
Financial Performance
- Avg gross sales
- $2.9M
- Per unit, per year
- Median gross sales
- $2.7M
- Item 19 type
- gross_sales
- Sample size
- 65 units
- vs category median 12 · large
- Range (low → high)
- $545K→$8.3M
- Cohort dispersion (min → max)
- Transparency
- 4 / 5
- vs category median 4 / 5 · typical
Compared against 75 Pet Services brands
Revenue is 4.1x the investment midpoint. At typical franchise margins, this suggests a payback under 3 years.
vs Pet Services averages
How Petland Compares
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 (yr3)
- +4.5%
- Net unit change last year
- 3-yr CAGR
- -2.8%
- Compounded over last 3 years
3-year detail · Item 20
- Opened (3yr)
- 3
- Closed (3yr)
- 6
- Terminated (3yr)
- 0
- Non-renewed (3yr)
- 0
- Transfers (3yr)
- 6
- Reacquired (3yr)
- 0
- Franchisor bought back
- 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.
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%
- 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)
- 55.8%
- 5-yr charge-off
- 0.0%
- Loans approved 2021+
- Active lenders
- 60
- Defaults
- 72
Vintage analysis
Petland charge-off rate by loan vintage
Explore lender portfolios on Bank Reports or regional data on State Reports.
Premium insight
SBA Lending Report
Deep-dive into Petland's SBA lending history: lender network, geographic footprint, interest rates, and more.
SBA Lending Report
- Principal loss rate and NAICS industry benchmark
- 10 lenders with concentration factor
- Per-state charge-off rates across 15 states
- Startup risk premium and job creation velocity
- 26-year lending trend
Instant access. No subscription.
A 41.6% charge-off rate means roughly 1 in 2 franchisees failed to repay their SBA loan. Investigate what changed.
Risk analysis
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.
Litigation (Item 3)
12 case reference(s): 2 pending, 4 settled.
Largest disclosed settlement: $4,500
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Brixey & Meyer, Inc.
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Supplier relationship · Items 8 & 16
- Franchisor sells you products: No
- Must buy proprietary products: No
- Restricted to system-approved products: No
Score breakdown · what drove the 75 / 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
| Initial term | 20 years |
|---|---|
| Renewal term | 20 years |
| Allowed renewalsℹ | 1 |
| Territory type | population based |
| Protected territory | Yes |
| Online sales rights | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Required |
| Non-compete (years)ℹ | 3 years |
| Right of first refusalℹ | Yes |
| Termination notice | 30 days |
| Curable defaultsℹ | 1 |
| Mandatory arbitration | Yes |
| Jury trial waiver | Yes |
| Governing law | Ohio |
| Litigation count | 6 |
View Item 3 litigation summary
12 case reference(s): 2 pending, 4 settled.
Items 10, 11
Training & Operations
- Classroom training
- 56 hrs
- On-the-job training
- 266 hrs
- Training location
- franchisor location and on-site
- Franchisor financing
- 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
FDD download
Petland · FDD (2025) PDF
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.
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 24 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 risk score of 75 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.