Pets Are Inn
 

Initial Investment and Financing

Q. How much does it cost to open a Pets Are Inn business?

A. This answer varies depending upon your geographic area. However, we can provide general guidelines for you to use in planning. The following table shows the range of investment one would normally expect to experience in starting your new business.

Range of InvestmentHighLow
Initial Fee*$35,000$10,000
Initial Advertising 7,5007,500
Real Estate & Improvements2,5000
Supplies & Printing2,5001,500
Lodging Supplies1,000500
Expenses During Training500250
Computer Equipment & Software3,5001,500
Facsimile Machine150150
Miscellaneous 4,0002,000
 
TOTAL$56,650$23,400
 
* Initial Fee for the 1st franchise territory is $35,000; $15,000 for the second territory; and $10,000 for the 3rd and subsequent territories.
The initial fee includes the 1st year’s Insurance Premium for PAI’s Master Insurance Program. In addition, you are required to purchase/lease a Damliar/Chrysler mini van either a Dodge Caravan or Plymouth Voyageur. The vehicle must be white and no more than 3 years old.

Q. What will my monthly income and expenses be?

A. This is very difficult to estimate because expenses can vary dramatically depending upon the size and location of the territory and other factors. All prospective franchisees are encouraged to contact existing Pets Are Inn Franchise Owners and inquire about their actual experience. The following is an estimate of the monthly income expenses associated with operating a “median revenue” ($146,000) Pets Are Inn business in 2005. These figures are estimates only. They were prepared by the Franchiser based upon: (1) the Franchiser’s operating expenses for its Pets Are Inn business from 1987 to present, and (2) the information provided by Pets Are Inn franchise owners on their monthly reports.

Gross Monthly Revenue$12,166$12,166 x 12 = $146,000
# of Host Families24
 
Expenses:
Cost of Goods Sold:
Host Family Expense$ 2,910
Royalty$ 983
Advertising
Nat’l – 1%$ 12233.0%
FO – ½%$ 61
Local Cooperative – 5%$ 608
Computer Fees      $ 50
Total$4,73438.9%
 
Operating Expenses:
Pickup & Delivery:
Variable Expenses:
Driver0franchise owner
Vehicle$ 133gasoline
Fixed Expenses:
Vehicle$ 400monthly lease/purchase
Insurance$ 100
License/fees$ 25
Maintenance$ 20
 
Office Operation:
Variable Expenses:
Reservations$ 50010 New Customers
 $ 86043 Existing Customers
Banking/Visa Charges$ 254
Fixed Expenses:
Telephone/Cell$ 100
Accounting$ 100
Support$ -
Supplies$ 75
Office/Operations Insurance$ 100
HF Advertising$ 50
Internet Access      $ 50
 
Total$2,76722.8%
 
Net Monthly Revenue Before Tax$4,66538.3%
Yearly IBT$55,98038.3%

The above expenses include only direct operating expenses. There have been no provisions made for amortization of start-up costs, depreciation of the Franchise Owner’s vehicle, finance costs, or taxes. Likewise, the above figures do not include any compensation, wages, or benefits for the Franchise Owner or for any employee.

Continuing Fee/Royalty

In addition to the Franchise Fee, beginning on the Effective Date, the Franchise Owner shall pay a non-refundable royalty amount computed on a monthly basis as follows:

  • 10% of the first $5,000 of gross sales revenue;
  • 7.5% of the next $5,000 of gross sales revenue;
  • 5% of all gross sales revenue in excess of $10,000.

Or $100 per month for the first six (6) months the franchise is in operation, whichever is greater; $200 per month for the next six (6) months the franchise is in operation, whichever is greater; $400 per month starting the 2nd year the franchise is in operation, for the duration of the Franchise Agreement, whichever is greater.

Pets Are Inn, Inc. is a Pet Business Corporation offering Pet Business Franchises, where each Franchises provides loving pet boarding in pre-screened, approved host family homes. Franchises are available throughout the United States.

Caring for pets since 1982, Pets Are Inn is the "#1 Alternative for Boarding Your Pet While You're Away " with "All the Comforts of Home."

   
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