Bottom line
- Total investment $554K – $1.1M including a $60K franchise fee, 6.0% ongoing royalty.
- Average unit revenue of $917K/year (median $830K). Estimated payback in 5.2 years.
- Rated STRONG with a risk score of 39/100. SBA loan default rate of 0.0% across 69 loans (below the industry average).
- System growing at 72.2% CAGR over 3 years with 37 total units — strong expansion trajectory.
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 The Dog Stop unit return on the cash you put in?
Unlevered ROIC · per unit
17%
Below typical band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 The Dog Stop units return on equity?
Equity IRR · 5-yr
49.9%
7.57× MOIC
Year-1 DSCR
1.88×
EBITDA ÷ debt service
Equity required
$1.8M
on $9.2M purchase
Total debt
$7.3M
SBA $4.6M + senior + seller note
Overview
About
The Dog Stop franchisees operate pet care facilities providing grooming, boarding, daycare, and training services for dogs. Day-to-day operations involve managing staff (groomers, trainers, kennel attendants), scheduling appointments, handling pet care logistics, maintaining facility cleanliness and safety standards, and managing customer relationships and retail sales.
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 12 · 13 states reported
The Territory Map
FDD Item 12 reports the state count, but the specific list isn't in our current data. The map will appear once we re-extract from the FDD or enough franchisee contacts are available.
13
states with franchisees (per FDD Item 12)
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
The Dog Stop presents moderate-to-caution risk due to undisclosed financial representations, corporate going concern issues, and aggressive growth that may outpace support systems, despite strong unit expansion and no litigation.
Score breakdown · what drove the 39 / 100 rating
- 01MEDNo Item 19 (Financial Performance Representations) disclosed — cannot validate the $917,252 average revenue claim independently
- 02HIGHGoing Concern status is FALSE, indicating potential financial instability at corporate level despite 63.2% unit growth
- 03MINORHigh investment range ($553.5K–$1.1M) relative to reported net income ($161K), creating 3.4–6.9 year payback period with no contingency
- 04MINORRapid 63.2% YoY unit growth may indicate aggressive expansion outpacing operational infrastructure or franchisee quality control
- 05MINOR6% royalty on gross sales (not net) extracts $55K annually from average unit, reducing actual take-home margins
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.
FDD download
The Dog Stop · FDD (2025) PDF