FAQ: How Much is The Total Investment/How Much Cash Will Be Needed? How Does Financing Work?
When looking to invest in a franchise, there are lots of factors to consider: unit economics, the growth of the sector, the culture and values alignment of the brand you are joining, and the liquid capital required. At Dogtopia, we want to ensure you understand what those financial qualifications are so that both parties can get to an educated and informed decision on the fit of our model for you upfront.
At this stage, you likely know a bit about us and that we have a great product; dogs! You probably also know that this is a BOOMING sector and we are the largest and fastest-growing provider of dog daycare in North America, the demand for our services has never been higher. With a validated Canadian model and dedicated Canadian Support Office team, it is the perfect time to join us on this journey!
So now it’s time to drill down into how you can make this investment a reality by understanding the financial commitment and financing available to you.
Total Capital Investment – In order to open a Dogtopia daycare center, the total investment including the franchise fee ($49,500), costs associated with construction, equipment, signage, pre-opening training and marketing expenses, plus leasehold improvements is likely to be in the range of $700,000-$900,000. We have a flexible model, so the total investment will vary depending on the scope of design and the size of your location.
Liquid Cash Requirements – Within the posted range above, we look for a net worth of $1M and recommend having $250,000-$300,000 in liquid assets such as physical cash, stocks, or any other portfolio investments that can easily be turned into usable funds for working capital to fund your venture. Financing can generally be secured through various vehicles for the remaining balance of this investment.
Financing – Dogtopia is not a direct financing partner, however, we do have a relationship with the 5 major financial institutions across Canada (TD Canada Trust, RBC Royal Bank, Bank of Montreal, Scotiabank, and CIBC). We will connect you with the best contact to discuss the best financing options for you as well as provide you with a business plan and pro-forma template as supplementary documents to strengthen your financial profile and application. Applicants who meet the minimum standard for liquid assets and net worth for Dogtopia highlighted above should be able to qualify for the Canada Small Business Financial (CSFB) loan of $350,000 to help fund this investment. The CSFBL can potentially be combined with other traditional financing methods to help minimize your up-front investment pending the strength of your financial position and credit with the bank.
Want to know how to open your own Dogtopia location near you? Call or email us at: 289.231.6285 / [email protected]