Pets and Franchising: The Pet supplies, accessories, pet care and training sector

“ I luv my dog as much as I love you”  –  Yusuf Cat Stevens (1971) one of his first songs released. He had a great sense of awareness I think, about how much easier it is to love your dog than a human, no argument here !

Of course there is nothing like the unconditional love of a dog, cat, budgie, hermit crab, rabbit  or blue tongue lizard is there! Well maybe not the hermit crab!

We all love our pets and as consumers we are happy to splurge to ensure they are well fed, healthy and  comfortable and they have the latest designer diamante collars and sports jackets.

This industry has shown incredible growth over the past 5 years and large corporates have come into the sector driving down prices and increasing competition (not that you would know it when I go to buy my dog food and treats for my boxer Bella!) .

The sector has many small-scale retailers but there are increasingly large players such as Petstock (55% owned by Woollies), Petbarn (Greencross Group) who have a network of veterinary practices and pet specialty stores, Pet Circle (an e-commerce platform for pet supplies), Mega Pet Warehouse a pet supply store and even Bunnings ramping up their offer of pet supply products.

Australia has one of the highest pet ownership rates around the world with over two-thirds of households owning a pet.

The sector comprises retail and on line pet supplies, pet training  and grooming, dog washing, mobile pet care, veterinary care.

I can get my dog food home delivered, book a dog trainer or dog walker or go to doggie day care.

Each of these activities sustain a business and many are franchised businesses such as Petstock, Petbarn Dog wash, Dash Dog wash, Bark Busters, Pet Pantry and so many more and they offer excellent opportunities for people love pets and who want to run their own business and have flexibility in work hours.

Statistics ( thank you IBIS World!)

As much as we all love statistics here is a “birds eye” view of the sector.

Industry revenue is expected to increase at 2.8% through 2024-25 to $4.1 billion which takes into account a 2.5% decline in 2024-25 due to inflation impacting retail spending.

There are around 822 businesses in the Pets and Pet Supplies Retailers sector in Australia.

Future Trends

• Retailers will likely benefit from inflation pressure coming off and consumers willing to spend on premium foods, dietary supplements, vitamins, pet accessories and treats.
• There will be greater focus on pet health with consumers willing to spend more on specialist premium brand pet food rather than what’s on offer at the supermarkets.
• There will be growth in the spread of pet retailers as population growth continues to expand into regional and growth corridors around city centres. So as there is a need for your local supermarket, medical practise, dental practise  and child care centre there will be a need for pet supplies, vets and supporting pet services.
• Competition will continue with growth of multi-channel retailers who have greater market share and resources putting pressure on the smaller retailers.

Demand for pet supplies will continue to grow with pet food being around 55% of the overall revenue then animal healthcare products at around 16% and then products and accessories.

The specialty pet sector is estimated to be worth an eye-watering $10 billion a year and includes pet training, dog washing, dog walking and training and veterinary services .

Franchising as a business model is well entrenched in this sector in retail and on line pet supplies, pet accessories, pet minding services, pet training, mobile dog wash and  Veterinary services.

The opportunites

The cost of taking on a turnkey PETstock franchise will cost around $350,000 which includes fit-out, stock, forklifts, signage and computer system which is a significant investment.

Lonely Pets Club is on expansion plans around Australia for those that love dog walking and doggy day care.

If you are more interested in dog training there are new franchise opportunities with Pro Dog training although this requires a bricks and mortar presence with an outlay of around $300,000 to $400,000 which includes the initial franchise fee of $50,000 and a flat 10% royalty on gross sales with no additional hidden fees.

Other more affordable franchises include dog training, dog grooming such as  Blue Wheelers or Aussie Pooch Mobile Dog Wash for an investment of around $15,000 to $20,000.00.

The cost of entry can vary hugely as do the demands and obligations required by each of them. Some franchised businesses will require large capital outlays of up around $300 to $400,000 (for a retail pet supplies operation) while a  mobile dog wash  ay cost  around $50,000 to $80,000.

The specialty pet sector is estimated to be worth an eye-watering $10 billion a year and includes pet training, dog washing, dog walking and training.

As with many sectors there are more and more players coming into the sector and there are the larger retailers now realising the value in the sector.

As with any business opportunity or investment we recommend you consider the following issues before you commit:

• Your budget – how much can you afford to invest without over stretching yourself and any borrowings.
• Your time – how many hours do you want or need to invest in the business full time or part time?
• How long – how long are you likely to be in the business and what’s your exit plan?

It may sound strange thinking about an exit plan before you have even gone into the business but every franchise has a lifespan for example with a dog wash after 3 years you will likely want to move on. At that point what will you have to sell  if anything and what are the costs of selling as franchise agreements usually have transfer fees  so check that out.

• Do the numbers work? – As much as it looks like fun you are still running a business so you need to ensure that the figures stack up and you can (at the very least) take a reasonable salary for your efforts?
• Cash flow projections and financial advice – Do you need to operate from premises if so, there are fixed overheads such as rent, insurances, security deposits and staff costs so seek independent financial advice to make sure the business opportunity is viable. This makes a mobile franchise far more attractive due to less overheads and fixed costs.
• Picture this – Can you see yourself doing this work in 3 or 5 years’ time or is it something you will get bored with quickly and then need to exit ?

A part of doing your due diligence on the franchisor before you commit is talking to other franchisees in the system to get their feedback on the franchisor their culture conduct attitudes and the system.

• Does the franchisor give them the systems and support they promised ?

• Do they resolve disputes and issues in a professional manner?

• Do they have the latest in software and accounting ?

• How do they market the brand ? Do they market on social media ?

• How many franchisees have left the system, how and why over the prior 3 years ?

• Do they have a non-compete clause at the end of the term how will that affect you ?

Get the right advice before you commit

Seeking advice from a  Specialist Franchise Lawyer will also help you to limit your risk and help you make an informed decision as well as seeking independent financial advice.

We also see the good the bad and the downright ugly and generally know what’s going on in the franchise sector.

So do your due diligence before you commit as once you get into a franchise it is not easy to exit!

Robert ( Hound dog ) Toth.

Robert Toth is Special Counsel and Accredited Commercial Law and Franchise Specialist at Sanicki Lawyers, with over 35 years of experience in franchise, licensing and distribution law and regularly publishes articles on line.

Robert acts and advises many overseas companies and also is a resident director for overseas companies and on the Advisory board of a number of client entities.

Named by Global Law Experts as Franchise Law Expert of the Year 2025 in Australia Contact [email protected] or call him on mobile 0412 67 37 57 www.sanickilawyers.com.au