Pet Passages

Can you provide details on the 2 unit closures that occurred in 2023 and 2024? What were the primary reasons for these closures?

Given that average gross sales of $278,896 are substantially lower than the peer range of $385,014-$917,252, what is driving this gap? Are newer units expected to reach higher revenue levels?

The non-compete radius of 65 miles is double the typical range. How is this geographic restriction justified, and what flexibility exists for negotiating this term?

What explains the 11 renewal conditions you require, which exceeds the typical 6.5-9.0 range? Can you detail what these conditions entail and how commonly franchisees fail to meet them?

The total potential contract term of 30 years is significantly longer than the typical 12.5-20.0 year range. What is the business rationale for this extended commitment?

Can you clarify the 8 curable defaults and 21 non-curable defaults referenced in your termination clause? Which non-curable defaults are most commonly triggered?

How does your required 5-year post-term non-compete within a 250-mile radius compare to what you require during the initial agreement, and what is the rationale for this expanded restriction?

You mention mandatory personal guarantees and spousal guarantees in some states. In which states are spousal guarantees required, and what liability do spouses assume?

What is included in your product and service purchasing requirements? Are franchisees required to purchase exclusively from you or designated suppliers, or can they source alternatives?

You state that you control maximum and minimum pricing. How does this pricing control work in practice, and can you provide examples of prices you have mandated?

Can you provide more detail about the 6 approval criteria for designated suppliers? How often do franchisees need to seek approval for new supplier relationships?

What specific modifications and upgrades are most commonly required at renewal, and what is the typical cost for a franchisee to comply with renewal conditions?

Since the system grew only from 13 to 18 units over 3 years while experiencing closures, what is your growth trajectory and target system size?

Are there any pending or recently settled disputes not reflected in the 3-year litigation data that prospective franchisees should be aware of?

Given that no terminations have occurred, can you explain your enforcement approach for franchise agreement violations?

What support and services justify your 94/100 support and training score, which exceeds typical benchmarks? Can you detail training content and ongoing support hours?

The $25,000 renewal fee represents a significant cost. Is this fee refundable or forgivable if a franchisee does not renew, or is it non-refundable?

For the 2 units that closed, did they operate for their full initial term or close prematurely? How long were they in operation?