Bottom line
- Total investment $151K – $353K including a $20K franchise fee, 6.5% ongoing royalty.
- Average unit revenue of $427K/year (median $424K).
- Rated MODERATE with a risk score of 63/100. SBA loan default rate of 0.0% across 6 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 PREPPY PET unit return on the cash you put in?
Unlevered ROIC · per unit
22%
Below typical band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 PREPPY PET units return on equity?
Equity IRR · 5-yr
49.9%
7.57× MOIC
Year-1 DSCR
1.88×
EBITDA ÷ debt service
Equity required
$811K
on $4.1M purchase
Total debt
$3.2M
SBA $2.0M + senior + seller note
Overview
About
Preppy Pet franchisees operate premium pet grooming, boarding, and/or retail services targeting affluent pet owners. Day-to-day operations likely include staff management, pet care services, inventory management, customer acquisition, and facility maintenance for a specialty pet care business.
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 · 7 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
Preppy Pet presents elevated risk due to undisclosed profitability, tiny unit count, Going Concern status, and lack of financial transparency despite moderate investment requirements.
Score breakdown · what drove the 63 / 100 rating
- 01MINORNo Item 19 (Net Income) disclosure — cannot verify actual profitability despite $426K avg revenue claim
- 02MEDOnly 20 units system-wide with unknown growth trajectory — suggests limited brand traction and scaling challenges
- 03HIGHGoing Concern status is False — indicates franchisor financial instability or operational concerns
- 04MINORHigh investment-to-revenue ratio — $151K-$353K investment against $426K avg revenue leaves minimal margin for error
- 05HIGHNo disclosed litigation but Going Concern flag suggests potential undisclosed legal/financial issues
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
10 numbers
One-time purchase · CSV download · Validation questions included
FDD download
PREPPY PET · FDD (2025) PDF