Pets Are InnFranchise Cost, Revenue & Review 2026
Data from FDD filing
FranchiseVerdict summary · 2026
A Pets Are Inn franchise requires a total initial investment of $74K – $122K, including a $65K franchise fee and an ongoing 10.0% royalty[2]. Per the 2024 FDD, average unit revenue was $263K[2]. Verdict grade: A. Run a live ROI scan →
Data last verified June 21, 2026 · figures per the 2024 FDD issuance
Overview
- Investment
- $74K – $122K
- 22nd pct Pet Services
- Avg gross sales
- $263K
- 9th pct Pet Services
- Royalty
- 10.0%
- 61st pct Pet Services
- Units
- 5
- 26th pct Pet Services
- SBA default
- N/A
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
Franchising since 1993. Systems this mature have refined operations and brand recognition.
Franchised units fell from 5 to 4 over 3 years. Investigate why operators are leaving.
Bottom line
- Total investment $74K – $122K including a $65K franchise fee, 10.0% ongoing royalty.
- Average unit revenue of $263K/year (median $208K).
- Verdict A (Top Quintile) with a risk score of 51/100.
Item 1 · who you're contracting with
The Franchisor
- Legal entity
- Pets Are Inn, Inc.
- Incorporated in
- MN
- HQ
- 7831 East Bush Lake Road, Suite 200J, Edina, Minnesota 55439
- Auditor
- DJJCPA, LLC
- Audited financials
- Franchisor revenue
- $0
- Most recent fiscal year
Affiliated brands
- of ours
Other brands the franchisor or its parent operates (Item 1).
Overview
About
Pets Are Inn franchisees operate pet boarding, daycare, and/or grooming facilities that provide in-home or facility-based care for dogs, cats, and other pets. Day-to-day operations include managing customer relationships, scheduling pet care services, handling animal care/safety protocols, staffing management, and marketing to local pet owners. Franchisees generate revenue through boarding fees, daycare services, grooming, and ancillary pet care services.
- CEO
- James E. Platt, Jr.
- Headquarters
- MN
- Founded
- 1992
- FDD year
- 2024
- States available
- 3
FDD Item 7 · 2024 filing · 10 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| Initial Franchise Fee | $65K | $65K | |
| Initial Advertising Fee | $0 | $8K | |
| Real Estate and Improvements | $0 | $3K | |
| Mini Van | $2K | $30K | |
| Insurance | $500 | $1K | |
| Supplies and Printing | $2K | $4K | |
| Boarding Supplies | $500 | $2K | |
| Expenses incurred attending Training in Minneapolis | $500 | $1K | |
| Computer Equipment and Software | $3K | $5K | |
| Additional Funds | $2K | $4K | |
| Total initial investment | $74K | $122K |
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
$32K
12.0% margin
Unlevered ROIC
31%
EBITDA / total invested capital
Payback
3.2 yrs
cash-on-cash, unlevered
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $74K – $122K
- Better than avg vs category
- Liquid capital req'd
- $2K – $4K
- Better than avg vs category
- Franchise fee
- $65K – $65K
- Below avg, review vs category
- Royalty
- 10.0%
- Monthly Continuing Fee · typical 6–8%
- Ad fund
- 1.0%
- typical 3–5%
- Total fee load
- 11.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 10.0% of gross sales |
| Marketing / ad fund | 1.0% of gross sales |
| Technology fee | $50 |
| Transfer fee | $33K |
| Renewal fee | $7K |
| Inventory (initial) | $2K – $6K |
| Total fee load | 11.0% of rev |
Financial Performance
- Avg gross sales
- $263K
- Per unit, per year
- Median gross sales
- $208K
- Item 19 type
- gross_sales
- Sample size
- 5 units
- vs category median 12 · small
- Range (low → high)
- $132K→$437K
- Cohort dispersion (min → max)
- Transparency tier
- revenue_only
- Categorical assessment of disclosure depth
- Reporting year
- 2024
- Fiscal year the figures cover
- Transparency
- 4 / 5
- vs category median 4 / 5 · typical
Compared against 75 Pet Services brands
vs Pet Services averages
How Pets Are Inn Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 5
- Opened
- 0
- Last reporting year
- Closed
- 0
- Turnover rate
- 0.0%
- Company-owned
- 1
- Corporate units in the system
- % franchised
- 80%
- vs corporate-owned
- Net growth (yr3)
- +0.0%
- Net unit change last year
- 3-yr CAGR
- -20.0%
- Compounded over last 3 years
3-year detail · Item 20
- Closed (3yr)
- 1
- Terminated (3yr)
- 0
- Non-renewed (3yr)
- 0
- Transfers (3yr)
- 0
- Reacquired (3yr)
- 0
- Franchisor bought back
- Continuity rate
- 100.0%
- Units that stayed open
- Ceased ops
- 16.7%
- Units that stopped operating
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 6 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.
Available to sell in · Item 12
- Washington
States where the franchisor is registered to sell new franchises (FDD registration filings).
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
No SBA loan data available for this brand.
Risk analysis
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Pets Are Inn presents caution-level risk due to an extremely small franchise system (5 units), absence of financial performance disclosure, opaque tiered royalty structure, and unproven franchisor viability.
Litigation (Item 3)
0 case reference(s): 0 pending, 0 settled.
Largest disclosed settlement: $65,000
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · DJJCPA, LLC
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: Yes
Score breakdown · what drove the 51 / 100 rating
- 01MEDOnly 5 operating units suggests extremely limited franchise system with unclear growth trajectory and viability
- 02MINORNo Item 19 financial performance disclosure (Average Net Income not provided) prevents validation of profitability claims despite $262,695 average revenue
- 03MINORTiered royalty structure (10%/7.5%/5%) appears designed to obscure total royalty burden—franchisee at $262,695 revenue pays ~$9,826 annually (~3.7% effective rate), creating uncertainty around profitability at different revenue levels
- 04MEDHigh franchise fee ($65,000) relative to system size and lack of disclosed franchisor profitability raises questions about business model sustainability
- 05HIGHNo disclosed going concern issues but minimal system size and lack of financial transparency creates elevated risk of franchisor instability
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 | 5 years |
| Territory type | city boundaries or highways |
| Protected territory | Yes |
| Territory population | 10,000 |
| Online sales rightsℹ | Granted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Required |
| Non-compete (years)ℹ | 2 years |
| Right of first refusalℹ | No |
| Termination notice | 30 days |
| Curable defaultsℹ | 5 |
| Mandatory arbitration | No |
| Governing law | Minnesota |
| Litigation count | 0 |
View Item 3 litigation summary
0 case reference(s): 0 pending, 0 settled.
Items 10, 11
Training & Operations
- Classroom training
- 24 hrs
- On-the-job training
- 3 hrs
- Training location
- On-site and corporate
Items 5 & 11
Franchisor Support
Item 20 · call current owners
Franchisee Contacts
10 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
Pets Are Inn · FDD (2024) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Pets Are Inn franchise?
The total investment to open a Pets Are Inn franchise ranges from $74K – $122K, with an initial franchise fee of $65K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Pets Are Inn franchise owners earn?
According to Item 19 of the Pets Are Inn FDD, the average gross sales per unit is $263K. The median is $208K. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
What is Pets Are Inn's franchise failure rate?
SBA 7(a) loan charge-off data is not available for Pets Are Inn (fewer than 10 loans on file). Charge-off rates are one way to gauge franchise risk, but not all franchise loans go through the SBA program. We recommend reviewing turnover and closure data in the FDD and speaking with current franchisees.
How many Pets Are Inn franchise locations are there?
As of their most recent FDD filing, Pets Are Inn has 5 total units in the United States, including 5 franchised units and 1 company-owned units.
Is Pets Are Inn a good franchise to buy?
FranchiseVerdict rates Pets Are Inn as a A-grade franchise with a risk score of 51 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.