Hounds Town USA Franchise Review 2026: Ratings & Verdict

Product details

Contents

Key facts


The Verdict

Quick Verdict · who it fits

Hounds Town USA fits first-time franchise buyers looking for a mid-scale pet services concept.

✓ Strengths

Key FDD Facts

The numbers a buyer needs first — straight from the filing.

Initial investment (Item 7)

$668K - $1.1M

Franchise fee (Item 5)

$49K

Royalty (Item 6)

6% + 2–3% ad

System size (Item 20)

96 +22

Agreement term

10 yrs

Company-owned units

1

Item 3 litigation

None disclosed

Model Hounds Town USA's costs in the investment calculator → Prefilled from this filing — startup cost, cash flow and break-even.

Buyer qualifications

✓Exclusive territory•Owner-operator required✓No bankruptcy disclosed✓No Item 3 litigation

Data extracted from the 2026 FDD filed with state regulators. Fees and terms may have changed since filing — request the current FDD from the franchisor before deciding. Not legal, financial, or investment advice. Full disclaimer.

What you'd pay the franchisor

Drag to your projected annual sales. Royalty 6% + ad fund 2–3% on gross sales.

PROJECTED ANNUAL SALES$500,000

$100k$2M

Royalty (6%)

—

Ad fund (2–3%)

—

Total / year

—

▪ Of-sales fees only · excludes rent, labor, COGS, and one-time costs · for illustration

Executive Summary

Free AI summary — the first read on the filing.

Key Numbers

97

Total units open

20

Units opened last year

22

Units closed last year

-2

Net unit growth

negative growth in 2025

AI Due Diligence Findings PREMIUM

What our analysis flagged across the 2026 filing.

5

Risks to review

4

Strengths identified

5

Questions to ask

Industry Benchmarks

How Hounds Town USA ranks against 54 Pet Services peers we've analyzed.

Initial investment

88th pct · of 54 peers

Franchise fee

39th pct · of 54 peers

System size

69th pct · of 54 peers

Pet Services industry averages

Avg investment

$283K - $610K

Avg franchise fee

$47K

Avg system size

72

Franchises analyzed

54

How Hounds Town USA stacks up

Closest concepts by category and investment.

Brand Item 19 Fee Investment Royalty Units
Hounds Town USA Disclosed $49K $668K - $1.1M 6% 96
Tailwaggers Franchise TrioSimilar price None $45K $712K - $1.1M 5% —
Psp Franchise OperationsBiggest system Disclosed $50K $541K - $2.0M 2–3% 502
PetlandTop-rated in category Disclosed $50K $316K - $1.1M 2.25–4.5% 69

Compare side-by-side ↗

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Frequently Asked Questions

How much does a Hounds Town USA franchise cost?

Hounds Town USA requires a $49,000 initial franchise fee and a total initial investment range of $667,610–$1,122,153, per the most recent FDD on file.

Who owns Hounds Town USA?

Hounds Town USA franchises are sold by Hounds Town USA, LLC, the franchisor entity of record on its Franchise Disclosure Document. Item 1 of the FDD discloses the corporate structure, including any parent companies and predecessors.

Does Hounds Town USA disclose financial performance (Item 19)?

Yes. Hounds Town USA discloses Item 19 financial performance representations in its FDD. See the financials sub-page for the disclosed figures.

What ongoing fees does Hounds Town USA charge?

Franchisees pay a royalty of 6% of Gross Sales and an advertising fund contribution of 2.0% to 3.0% on gross sales as defined in Item 6 of the FDD.

How many Hounds Town USA locations are there?

As of their 2026 FDD, Hounds Town USA has 96 total locations, with 22 new locations opened in the most recent reporting year. This information comes from Item 20 of the FDD.

Does Hounds Town USA grant exclusive territory?

Yes. Hounds Town USA grants franchisees an exclusive territory under Item 12 of the FDD. Note that exclusive territories often carve out online sales, alternative distribution channels, and non-traditional venues — review the full Item 12 language before signing.

What are the renewal and exit terms?

Per the FDD, Hounds Town USA discloses an initial agreement term of 10 years. Review Items 10 and 17 for the full renewal and termination provisions.

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