Franchise report
2016
Table of CONTENTS
3 What is Wag N’ Wash?
4 Our Story
5 Why Wag N’ Wash?
10 Revenue Streams
12 What Makes Us Unique?
13 How Much Will It Cost?
14 Industry
15 How Much Can I Make?
16 What Makes A Good Franchise Owner?
17 A Day In The Life
19 What Support Will I Receive?
21 Meet Our The Team
23 Next Steps
3
What is Wag N’ Wash?
It’s Simple. Our Focus Has Four Legs
At Wag N’ Wash we provide dogs and cats with a unique
experience that is unlike any other. We have created a place
where you can wash ‘em, feed ‘em, and spoil ‘em all in
one cool place!
By offering professional grooming, a self-wash, natural pet
food and retail products, and an in-house bakery, Wag N’ Wash
captures the hearts of all animal lovers across the nation.
This one cool place is quickly becoming many cool places
as we continue to partner with more business savvy,
self- determined, and animal crazed humans who are ready
to become Franchise Owners!
We believe that your companion animal deserves a
life comparable to the one you live! If you’re passionate
about our mission and you think you have what it takes
to become a Wag N’ Wash Franchise Owner then
please, read on!
4
Our Story
It all began with a Dalmatian named Geni
Dan and Jef, Wag N’ Wash Founders, both worked and lived
the typical strenuous corporate life. Working unbearable hours
with demanding travel and very limited time available to spend
at home with their beloved dog Geni. Geni was growing older
and with that realization, Dan and Jef wanted to create a career
that could support them financially yet provide them with an
opportunity that Geni could partake in. Fortunately, their love
for Geni led them to create a successful company where they
could earn a living with her by their side.
The mission for Wag N’ Wash was to recognize, promote,
and foster the mutual positive impact that companion animals
have with their humans. Wag N’ Wash began in 1999 as a small
self-service dog wash and in-house bakery. It was so small at the
start that Dan and Jef bought all the ingredients for the baked
treats at the grocery store while they shopped for themselves!
They began to realize that there was a serious demand for not
only their tasty treats, but also for natural pet foods and products!
Dan and Jef found that there wasn’t a single store that satisfied
the mass need for healthy products and with that they decided
to become the pioneers. By adding a full-line of awesome retail
products with a level of customer service never before seen in
the pet retail world, Wag N’ Wash became the ‘talk of the town’.
Due to a huge increase in their awareness, expansion of their
store seemed like the best route to take. Wag N’ Wash began
franchising in 2006, and has since seen amazing success with
store averages over $1.3 million in annual sales. Dan and Jef
and the growing number of Wag N’ Wash Franchise Owners
are making friends – furry and non-furry alike - and earning a
living that has far surpassed the original dream for Wag N’ Wash.
5
Why Wag N’ Wash?
We Have a Strong Sense Of Purpose
Wag N’ Wash was born into one of the fastest growing
industries in the market. Wag N’ Wash has grown 40% this
past year and their national expansion is due to their
dedication and commitment to growth.
American Pet Association stated, “For 2015, it estimated
that $60.59 billion dollars will be spent on pets in the US.”1
When Dan and Jef first created their business model, the
pet retail industry was only breaking $17 billion. Today,
it’s soared to an astonishing $60 billion dollars, with the
industry marked for further hyper-growth.
When looking into the industry’s breakdown of spending,
it shows that the US consumer spent money on retail, supplies,
vet care, animal purchase, and pet services.
Fortunately for Wag N’ Wash, our business model encompasses
the entire top ranking categories outside of vet care.
Wag N’ Wash provides natural pet food, an array of supplies
and natural remedies, and pet services such as professional
grooming and a self-wash. Wag N’ Wash even dedicates time,
events and support to local shelters that offer adoption and
fostering for companion animals.
PetFoodIndustry.com states that “the sales growth of natural
pet food is expected to significantly out-pace that of pet food
overall during the next five years with a compound annual
growth rate (CAGR) of 14.6% for the 2014 – 2019 period.”2
With natural pet food expected to increase by an astounding
14.6% in the next four years, Wag N’ Wash couldn’t have
planned a better time to become one of the fastest growing
pet retailers on the planet.
1. 2.
American Pet Association, “Dog Growth”, 2014, p.3
PetFoodIndustry.com, http://petfoodindustry.com/growth
6
Why Wag N’ Wash?
We’ve Earned Brand Loyalty
With a relentless approach to achieving customer service perfection,
Wag N’ Wash has become the trusted name in Pet retail in all of the
communities in which we are open in. Brand loyalty occurs when a
consumer has become committed to your brand and continues to
make purchases with you over time.
Wag N’ Wash has many years of relationship building with not
only its customer base but with industry manufacturers and
distributors. These strong relationships provide our Franchise
Owners with grade-A pricing and benefits that new independent
store owners do not have access to.
A brand that has gained this type of loyalty can offer favorability
above competitors, which allows for a quicker and more
successful supply to customers demands. The brand loyalty from
industry manufacturers allows for Wag N’ Wash to supply their
customers with the best options on the market.
Rosetta, a consumer engagement report, states that “Engaged
customers buy 90% more frequently, spend 60% more per
transaction, and are five times more likely to indicate it is the
only brand they would purchase in the future. All of these
factors lead to an engaged customer, delivering three times
the value to the brand over the course of a year.”3
Wag N’ Wash has been dedicated to building and sustaining
brand loyalty since 1999 when they first began.
3. American Pet Association, “Dog Growth”, 2014, p.3
7
Why Wag N’ Wash?
Community First
Dan and Jef know that without the loving support from the
community, Wag N’ Wash would never be what it is today.
Giving back to the community is an instrumental part of the
Wag N’ Wash business model.
Supplying natural pet food is a major revenue stream for
Wag N’ Wash but what truly makes it unique is that every
Franchise Owner has the freedom to bring in local options.
Wag N’ Wash also encourages our Franchise Owners to bring
in local products such as accessories and toys.
By offering and promoting these local products, we allow the
consumer to see that we support the local community that
has long supported us. Along with this community support,
Wag N’ Wash also prides themselves on their relationship with
local adoption centers and support for the disabled companion
animal community.
Wag N’ Wash promotes local shelters and even goes the extra
mile to bring adoption day to the local stores. In addition, the
stores offer various therapy tools and accessories to assist in
aging animals or those with disabilities.
Wag N’ Wash is unique in there one-stop shop business model
that intertwines the importance of giving back to the community.
8
Why Wag N’ Wash?
Focused Experts
Our products and services focus only on dogs and cats, the
largest segment of companion animals, and the stores do not
sell supplies to any other animals.
The Human Society reports that 65% of US households have
pets and 163.6 million people in the nation own a cat or dog.4
163.6 million people owning a dog or cat is the reason
Wag N’ Wash narrowed their specialty to only serving these
companion animals. This allows for the stores to not only reach
the largest percentage of pet owners but it also allows their
team to be experts in cat and dog nutrition and health.
Our focus for products and services are strictly natural and
healthy food, treats, supplements, and other products that
showcase our devotion to offering a companion animal a
healthy lifestyle.
The staff is professionally and diligently trained in all aspects of
healthy food and natural remedies, providing every customer
with an expert answer to all their questions.
4.
PetFoodIndustry.com, http://petfoodindustry.com/growth
9
Why Wag N’ Wash?
Unique Goods & Services
Unlike most independent pet food stores that just sell food,
Wag N’ Wash Healthy Pet Centers combine retail goods with
self-wash, full-service grooming and in-house pet bakery to
fulfill all of our customers needs under one roof.
Our stores offer top quality products while providing the utmost
convenience in the one-stop shop model. Since 1999, Dan and Jef
have dedicated many years to perfecting their business model to
fit the needs of the community.
Wag N’ Wash is considered to be the ‘Whole Foods’ of the
pet retail industry, providing their customers with the best quality
of natural ingredients.
The mission of Wag N’ Wash is to offer the customer
the ambiance of a mom and pop shop while supplying the
top name brands that will be the healthiest option for their
companion animal.
Wag N’ Wash has yet to see competition that can compete
with our small boutique feel and quality products for a
reasonable price.
10
Revenue Streams
Full Service Grooming. Self-Wash. In-House Bakery. Retail Center.
1. FULL SERVICE GROOMING
2. SELF-SERVICE DOG WASH
In addition to our self-wash, guests are given the
option of scheduling a traditional, full service grooming
appointment. What guests love about our grooming
facility is that each companion pet is assigned to one
groomer, from start to finish.
Our self-service wash is unlike others in the industry.
Our self-wash is a fun and truly social experience,
not a chore, which our guests love to repeat over and
over. The self-wash is a clean and well-ventilated part
of the store that is constantly attended by well-trained
staff members. Everything provided in the self-wash
is to enable our guests to wash and pamper their
companion pets while not having to worry about
the mess of washing at home. The self-wash is one
of our highest profit centers.
We believe this process to be a less stressful experience
for the pet than the “assembly line” approach taken by
other shops. Our process gives the groomer an
opportunity to build relationships with guests and
their companion animals. The grooming department
experiences a cyclical visit for their guests, typically every
4-8 weeks. This allows Wag N’ Wash the opportunity to
sell and build relationships during each return visit.
The self-wash encourages an on-going customer to
visit the store typically every 4-6 weeks. This provides
a great opportunity to also sell goods and services
during each visit, continuing to build a strong brand
loyalty with satisfied customers.
11
Revenue Streams
Full Service Grooming. Self-Wash. In-House Bakery. Retail Center.
3. RETAIL CENTER
4. IN-HOUSE BAKERY
Our retail center is unique in that we focus only
on food and supplies for the two largest sectors
of companion pets, dogs and cats. We do not sell
live animals or sell supplies for reptiles, rodents,
aquatics, etc.
Ever walked into a dog-wash and thought “ew, it smells
like wet dog!” At Wag N’ Wash, our customers are
greeted by the smell of freshly baked cookies! Each store
has an in-house bakery where we create our proprietary
line of biscuits and treats for companion animals.
We specialize in only all-natural, healthy foods for
cats and dogs, as well as products that help to foster
and promote healthy, active lifestyles for our companion
pets. Our retail center speaks to the health conscience,
active pet guardians. The retail goods are a natural
extension of add-on sales when guests are visiting for
washes or grooming. And like our service customers,
pet food customers are recurring as well, returning
every 4-6 weeks.
Our bakery appeals to impulse purchases while our
guests are in the store shopping.The bakery is what
often sets Wag N’ Wash apart from others in the minds
of our consumers. They frequently identify us as “that
cool place with the bakery!”
12
What Makes Us Unique?
We Promote Healthy Living, While Giving Back
Wag N’ Wash was built on the premise of spending more
time with not only the people we love but the animals that
have become our family. Our stores promote healthy living
while giving back to the community the love and support we
have continually receive.
Wag N’ Wash stores have been created to offer one cool
place that has everything a consumer could need for
their companion animal and this eliminates the need
to go to a competitor. When consumers walk into a Wag N’ Wash they are
immediately welcomed with open arms and offered a
tour of the store and all the options they have. This type
of one-on-one attention is unheard of among competition
and allows Wag N’ Wash to stand above similar business
models with their excellent customer service.
Our products and services focus only on dogs and cats,
which allows us to specialize and train our staff to be experts
on our natural food, dietary remedies and natural supplements.
Our focus on strictly natural, healthy products and services
showcase us as the fastest growing sub-segment of the
industry. Wag N’ Wash and its team promotes and advocates
for the best products not only for humans but also for our
companion animals.
We believe that if humans deserve the best then so
do our companion animals and that is exactly what our
business model reflects.
13
HOW MUCH WILL IT COST?
Wag N’ Wash offers full retail and natural foods selection,
with an in-house bakery, grooming rooms and wash stations.
To do all this, we need a retail space ranging between
3,500 and 5,000 square feet.
The average investment to get fully up and running is
approximately $400,000. This includes the franchise fee
of $40,000, real-estate aid, store build-out costs, training
expenses, initial advertising and marketing, signage,
computer equipment, inventory and supplies, grand
opening costs, and three months of living costs and
other expenditures to get your new business off the
ground with all four legs running!
14
INDUSTRY
The Pet Retail Industry is currently $60 billion with projections of
increasing in the next few years and was only just past $17 billion
when Wag N’ Wash started in 1999.
The fastest growing segment of the industry is the natural foods
market. This coincides with the population’s conscious purchasing
of healthful products for themselves. Healthy living is now extended
to companion animals and the desire to keep them happy and
healthy as long as possible.
The industry has the advantage of being resilient in the recession,
meaning that even in the face of financial downturns we have seen
a consistent growth across our locations. Wag N’ Wash has been in
business through two economic downturns and has continually
experienced year-to-year sales increases.
When economic times are tight, consumers focus their spending
on providing for their families and this holds true for companion
animals as well.
15
How Much Will I Make?
Wag N’ Wash has seen a huge increase in revenues that
continually match their mass expansion. As you go through
the Education Process, you will have the opportunity to speak
with the Development Manager and look through our Franchise
Disclosure Document (FDD).
Our FDD, including our Item 19, contains all the exciting sales
numbers from all of our current locations, as well as a detailed,
100% transparent description of our business model.
Don’t worry, we won’t leave you completely hanging! Here’s a sneak
peak...To date, Wag N’ Wash is reaching average store sales of $1.3
Million with 62.5% of our Wag N’ Wash franchisees that have met or
surpassed that average.
16
WHAT MAKES A Good
Franchise Owner?
The candidates who have successfully been awarded
a franchise are typically:
Pet Enthusiasts.
Our Franchise Owners are passionate about animals while serving
as hands-on owner operators to provide the best experience for
the customer and companion animal.
Positive, Outgoing, and Hard-Working.
They are willing to put a face to their store to give their
customers sense of community. They are all hard working,
continuously thinking out-of-the-box, and putting in the hours
to create a successful business.
Motivational Leaders.
They are involved in the community and constantly are
thinking of ways to give back. They are detail oriented and
practice a healthy lifestyle will allowing them to thrive under
our business model.
Business Savvy.
They are eager to grow into multiple locations, and have the
management skills to be able to eventually step back, and work
on the business, not in it.
17
A Day In The Life
Hear It From A New Franchise Owner
8:30am:
9:00am:
Arrive at the store, turn on the lights and count down
the drawer to start the day. Check voice-mail. And
of course, take a few moments to roll around on the
floor with your four-legged family members who work
alongside you!
8:30am - 9:00am:
Walk the store to ensure it is in prestige condition
following the previous nights close. Ensure your staff
washed/folded laundry so it’s prepared for the day
ahead. Check all equipment like dryers to ensure they
are working for your guests. Ensure opening checklists
are completed for retail and wash areas.
Greet your employees and groomers and delegate
any duties, cover any promos, specials and the store’s
goals. Check with your groomers to see if they have
openings for walk in appointments. Set expectations
for your team for the day.
Open the doors to greet guests, both two and
four-legged alike! Return any phone messages and
respond to your emails.
9:30am - 11:00am:
Joining the team in servicing some guests (set
examples for your team and gain first-hand feedback
from your customer base). Oversee receiving of
deliveries and purchase orders. (Most locations see
at least three deliveries throughout the week; expect
to work the shifts the orders are placed as well as the
days they are received) Spend down time cleaning
and reorganizing the store, building displays, continual
training with staff.
11:00am - 12:00pm:
Build Payroll Reports (Bi Weekly), Build Staff Schedules
(Bi Weekly), Stock shelves, continual training with staff.
Deposits to the bank, shopping outside the store for
various store use or bakery items.
18
A Day In The Life
12:00pm -1:00pm:
Managing returns back to vendors (Once a week).
When not doing this, reach out to vets and the pet
food manufacturers for training and support.
1:00pm -6:00pm:
Greet more guests, check email, Baking (if no baker
is on staff at the time) Bookkeeping. Spend down
time on checking store use items, like bathroom
tissue and shampoos.
6:00pm -7:00pm:
By this time after a full day of guests in the store, it would
be time to restock products, check cleanliness of the
store, straightening product and displays, call all grooming
appointments for the morning as reminders.
7:00pm - 8:00pm:
Customer Service, cleaning the wash area, laundry, filling
shampoos and cleaning brushes used in the wash area,
prepping the area for the next day, trash removal and
End of Day. Ensure closing checklists are completed for
retail and wash. Close out the drawer, set the alarm and
whistle for your four-legged friend to leave with you.
Tomorrow is going to be another busy day in your own
Wag N’ Wash business.
19
What Support Will I Receive?
Growth Can’t Be Sustained Without Support
Training - The Wag N’ Wash training program consists of 8 full days
at a company owned store prior to your own store opening, then an
additional 5 days of training at your Wag N’ Wash location. There will be
a training 3 days leading up to the store opening as well as the 1st two
days of operation.
On-Going Support - Franchise Owners have 24 hour access to
the Wag N’ Wash intranet, which contains extensive training and various
“how to” manuals for every aspect of daily store operations. Support
personnel are also available via telephone or via email 7 days a week
during normal store operating hours.
Field Support - Three to four times per year we do an on-site
audit and visit to address questions and concerns for any and all of our
Franchise Owners. You will have a dedicated Franchise relations manager
who will work with you to maximize your success.
20
What Support Will I Receive?
Growth Can’t Be Obtained Without Support
Annual Meetings
As Wag N’ Wash quickly transforms from regional brand to national
powerhouse, we are planning for our first annual meeting where
questions, concerns and new programs/initiatives can be addressed in
a collaborative and exciting environment.
Advertising
All advertising is done by and paid for by the individual franchisees. As
the system grows and the marketing account can be sustained, we will
implement national advertising efforts.
Currently the corporate marketing account pays for advertising
design, in store POP materials, shopping bags, bakery bags, brochures,
social media management company, gift card materials and the materials
required for the customer VIP program.
21
Meet OUR Team!
Jef Strauss Co-Founder, Wag N’ Wash
Jef grew up in an entrepreneurial family, as his father started his own
jewelry business before he was born. After running the day-to-day
operations of his family’s business for many years, Jef received his
B.A. from Evergreen State College in Olympia, WA. Moving back
to Colorado Jef began a career in commercial real estate. During
this time, Jef helped Dan found Wag N’ Wash and grow it into
the business that it is today.
Dan Remus Co-Founder, Wag N’ Wash
Prior to starting Wag N’ Wash, Dan worked for over 15 years in
the retail and service industries where he developed a keen
understanding for creating guest experiences worth repeating.
Being passionate about companion animals and the people who
love them is a driving force behind the creation and success
of Wag N’ Wash.
Chris Stahl Director of Operations
With twenty plus years of experience overseeing the day to day
operations of the business and hands on experience managing
several locations, Chris has worked in every position, assisted in
construction, procurement and leading the local teams in the
corporate stores.
Sue Ager Marketing and Events Coordinator
Sue is truly dedicated to creating marketing campaigns that will
translate into increased store traffic for franchisees and assisting with the
development of strong community partnerships to raise the visibility of
Wag N’ Wash stores in every community served. Sue brings more than
25 years oftraditional and non-traditional media experience to Wag N’
Wash. She has developed and worked events of all sizes. Sue believes
that working together with the Wag N’ Wash team we can positively
impact pets and their families in every store.
22
Meet OUR Team!
Abe Dunaway Store Coordinator
As Store Coordinator for Wag N’ Wash, Abe ensures that all locations
look, act and feel as one. This continuous and consistent appearance is
important to ensure all Wag N’ Wash stores are performing above and
beyond our guests’ expectations. Abe has been with Wag N’ Wash since
2007, starting as a Store Manager and eventually working through
every aspect of the business.
Nathan Semsch Project Manager
Nathan develops client relationships, acting as the main point of
contact while he oversees their project from conception to
completion and working to ensure that the contractor keeps
its word on the project schedule and budget.
Bryan Williams Purchase Agent/Event Coordinator
As Purchase Agent and Event Coordinator for Wag N’ Wash, Bryan
strives to provide support to all locations through comprehensive
event planning and seeking out quality products to accentuate the
Wag N’ Wash line. With over 20 years of management experience
in the service industry, Bryan knows that teamwork and logistics
management are key to insuring success with all Wag N’ Wash events.
Chris Ramers Franchise Relations Manager
As Franchise Relations Manager for Wag N’ Wash, Chris is dedicated to
giving support to the entire franchise network. This support includes
coaching in many aspects of the business including, but not limited to
systems, leadership, profitability and growth.
23
Next Steps
We are animal people, and of course we babble,
smooch, cuddle and nuzzle with our pups and
kitties. It’s a big part of our lives. But in the spirit
of fair warning, let us say this...
...We are serious about good business. We love
watching the expansion of the brand as new
locations open successfully across the country.
We know exactly who we think makes successful
franchise partners, and hope that it is you! We
have a 6 - 8 week mutual investigation process
that allows us both the opportunity to make an
informed decision on each other. We wish you the
best of luck as you undertake the journey,
and can’t wait to talk with you soon.
Here Are the Steps in Our Selection Process
1. Initial Call
2. Review Franchise
Disclosure
5. Discovery Day
in Colorado
3. Peer Review
6. Executive
Interview
4. CEO Clearance Call
7. Franchise Awarded!
Ready to Get Waggin’?
CALL OR EMAIL US NOW TO GET MORE INFO
855.WAG.WASH
(855.924.9274)
[email protected]