Hounds Town USA franchise unit economics
Hounds Town USA franchisees run dog daycare, boarding and spa from a warehouse-style building. All 73 franchised locations average $520,855 on 11,722 visits and a $44.43 check, with boarding taking 51.7% of revenue on 44.8% of the visits. Twenty-nine locations open three years or more average $722,816 of revenue and $152,070 of net operating income, 21.0%.
- Primary source
- Hounds Town USA, LLC, 2026 Franchise Disclosure Document
- Items read
- Items 5 and 6 for fees; Item 7 for cost to open; Item 19 for sales and any profit figure; Item 20 for the location count
- Population
- 73 of 96 locations
- Our calculations
- Marked on the page with an asterisk. Method
- Last reviewed
- 26 September 2026
Disclosure-based. Not a forecast, not an offer to sell a franchise, and not advice.
A Hounds Town location in its second year averages 7,641 visits. One open five years or more averages 18,468. The average check between those two points moves from $41.05 to $45.63, so almost the whole build-up is bodies through the door, about 30 more dogs a day. Meanwhile the local advertising rule takes $5,000 a month from a location in its first year, which is 19.1% of what that year earns.
- Nine tenths of the revenue build-up is visits, and one tenth is price. Revenue multiplies 2.69 times from the 1–2 year group to the 5+ group while the check multiplies 1.11 *, 10,827 more visits a year, or 30 a day.
- Boarding takes 51.7% of system revenue on 44.8% of the visits. $51.24 a boarding stay against $30.27 a daycare day *, so one boarding night is worth 1.69 days of daycare.
- The local advertising rule costs the most when the business earns the least. $5,000 a month in months 4 to 12 is 19.1% of the 1–2 year average of $313,632 *; from month 37 the same obligation becomes 2%.
- Rent is 13.5% of revenue at franchised locations and 5.8% at the affiliate. 7.7 of the 15.8-point profit gap between them *, on wages that runs 37% on both sides.
- 67 franchise agreements are signed with the location still to open, against 22 openings last year. 69.8% of the 96 open locations *, with 12 projected to open in the coming year.
How much does a Hounds Town USA franchise make?
The average Hounds Town USA unit reported $520,855 of revenue in the 2026 FDD, and the median reported $485,743. The brand’s disclosure document puts the profit line at 21% of revenue. Fees come off the top first, at about 8.5% of sales across royalty, brand fund and the rest of the stack. Revenue is not income. Rent, wages, cost of goods and the franchise fees all come out before an owner is paid. The figures for the highest-selling and lowest-selling locations are below.
Top performers
What separates the top Hounds Town USA performers
Hounds Town USA splits its locations into groups instead of publishing one average. The best group averaged $1,359,016 a year. The worst averaged $92,602. Both run the same brand, on the same agreement, paying the same fees. The middle location sold $485,743. The average was $520,855. More than half the system is below the number the brand quotes.
Decided before you open
- Trade area and site.A 14.7× gap between bands, and 14.7× between the strongest and weakest single location, is not an operating gap. Catchment, daytime population and what sits next door set the ceiling before the first customer arrives.
- What you spend to open.Opening costs $667,610 to $1,122,153, a 1.7× range inside one brand. The high end usually buys more capacity, so the cheapest build is not always the cheapest route to the top band.
- Lease economics.Occupancy cost ran 13.5% of sales in this filing. The rent does not fall when sales do, so the same lease is a far heavier line at the bottom of the system than at the top. That is how a weak site compounds into a weak profit line.
Live operating levers
- Wages, the dominant line.Wages take 37.2% of sales, against 21.0% kept at the end. Staff productivity, scheduling against demand hour by hour, and the balance of base pay to commission are where this is won. Small movements here move the result more than anything else, because nothing else in the structure is that large.
- Occupancy, the line that does not flex.Rent and building costs take 13.5% of sales here. Sales per square foot and the hours the space is earning are the only two ways to move it, because the rent itself is fixed at signing.
- Visits, the operating driver.This model bills on visits. The owner watches how many visits happen, what each one is worth, and how many customers book the next one before they leave. It is worth watching every week, because by the time it turns up in a monthly close the quarter is half gone.
- Fees, and where the minimum bites.Fees run about 8.5% of sales. A minimum sits underneath the percentage, so the low-volume location pays the higher effective rate. The brand charges the weakest locations the most. Work out the sales level where the percentage overtakes the minimum and know which side of it you are on, because the answer changes what an extra dollar of sales is worth.
- The first year.This filing shows how a new location builds up, so the ramp can be underwritten from the document rather than assumed. Read two things out of it: the month sales cross the point where costs are covered, and how much cash you fund before that month arrives. Everything before break-even is paid for by you.
Context you underwrite around
- The reporting screen.73 of 96 locations are behind these figures. Locations open less than the full year, brand-owned, or not meeting the reporting criteria are excluded, so the numbers describe locations that cleared that screen, not the system as a whole.
- What the disclosure leaves out.Item 19 publishes no attainment figure. The brand’s own locations are the only margin signal in the document, and they are run by the people who wrote the playbook.
The first year is visits
Thirty more dogs a day is the whole difference between year two and year six.
The build-up reads in operating units. A location in its second year runs 7,641 visits. One open five years or more runs 18,468. That is 10,827 more visits a year. Visits account for 90% of the difference in sales. The price per visit accounts for the rest.
| Open | Locations | Average revenue | Visits a year * | Visits a day * | Average check | Growth on 2024 |
|---|---|---|---|---|---|---|
| 1–2 years | 22 | $313,632 | 7,641 | 20.9 | $41.05 | n/a |
| 2–3 years | 17 | $420,811 | 9,639 | 26.4 | $43.66 | 39.68% |
| 3–5 years | 22 | $609,310 | 13,460 | 36.9 | $45.27 | 10.86% |
| 5+ years | 11 | $842,716 | 18,468 | 50.6 | $45.63 | 1.44% |
| 10+ years | 1 plus the affiliate | $1,161,265 | 24,484 | 67.1 | $52.85 | −7.70% |
Average revenue, location counts and year-on-year growth are as the brand reported it.
Growth runs out before the revenue does. 39.68% in years two to three, 10.86% in years three to five, 1.44% after five. −7.70% for the two oldest locations, so the build-up is an one-time climb.
The average check rises $4.58 across four years and $11.80 across ten. $41.05 to $45.63 to $52.85 *, which on 18,468 visits is worth $84,584, real money, and still a fifth of what the extra visits are worth.
Boarding is half the revenue and less than half the visits.
Across all 73 locations, daycare produced $14,298,451 on 472,309 visits and boarding produced $19,647,099 on 383,413. Spa work added $3,006,048 and everything else $1,070,827. A boarding stay is worth $51.24 against $30.27 for a daycare day.
| Category | Revenue | Share | Visits | Share of visits | A visit |
|---|---|---|---|---|---|
| Daycare | $14,298,451 | 37.6% | 472,309 | 55.2% | $30.27 |
| Boarding | $19,647,099 | 51.7% | 383,413 | 44.8% | $51.24 |
| Spa | $3,006,048 | 7.9% | n/a | n/a | n/a |
| Other | $1,070,827 | 2.8% | n/a | n/a | n/a |
| All | $38,022,424 | 100% | 855,722 | 100% | $44.43 |
Every figure is marked *, summed from the filed revenue and visit counts for each of the 73 franchised locations.
Boarding share swings from 38% to 68% across the system. Location 52 takes 38% of revenue from boarding and location 42 takes 68%, on buildings built to the same specification. The mix is a decision.
What is left at the end
21 cents in the dollar, and rent is where it leaks.
Twenty-nine locations open three full years or more under the same ownership filed complete statements. Revenue averaged $722,816 and net operating income $152,070, 21.0%, with the median location at 23.6%. The affiliate location, open since 2004, kept 36.8%. Wages is 37% on both sides; rent is 13.5% at the franchised locations and 5.8% at the affiliate.
| Line | 29 franchised, average | Share | Affiliate | Share | Gap in points * |
|---|---|---|---|---|---|
| Net revenue | $722,816 | 100% | $1,028,511 | 100% | n/a |
| Cost of goods | $30,036 | 4.16% | $16,929 | 1.65% | 2.51 |
| Marketing and advertising | $26,951 | 3.73% | $4,030 | 0.39% | 3.34 |
| Direct operating | $50,035 | 6.92% | $75,551 | 7.35% | −0.42 |
| Royalty | $43,369 | 6.00% | $61,711 | 6.00% | 0.00 |
| Brand fund | $11,311 | 1.56% | $20,570 | 2.00% | −0.44 |
| Technology, advertising management and reunion | $6,870 | 0.95% | $6,870 | 0.67% | 0.28 |
| Rent | $97,656 | 13.51% | $60,000 | 5.83% | 7.68 |
| Repairs and maintenance | $10,780 | 1.49% | $1,198 | 0.12% | 1.37 |
| Utilities | $24,978 | 3.46% | $21,978 | 2.14% | 1.32 |
| Personnel | $268,761 | 37.18% | $381,276 | 37.07% | 0.11 |
| Total expenses | $540,710 | 74.81% | $633,184 | 61.56% | n/a |
| Net operating income after operating costs | $152,070 | 21.04% | $378,398 | 36.79% | −15.75 |
Dollar amounts and the rounded percentages are as the brand reported it; the precise percentages and the gap column are marked *.
Rent takes six dogs a day before the owner takes anything. $97,656 at a $44.43 average check is 2,198 visits a year *; wages takes another 16.6 a day, and what is left over is 9.4.
The highest location kept $460,105. The lowest lost $131,405. Both inside the same 29 locations, all open at least three years.
The imputed brand fund averages 1.56% against the 2% the notes describe. $11,311 against the $14,456 that 2% of $722,816 would give, while the imputed 6% royalty of $43,369 matches its revenue base to the dollar.
Fees and the advertising rule
The advertising rule is a fixed bill until month 37.
Royalty is 6% and the brand fund 2%. The line that actually moves the early years is the local advertising requirement. $5,000 a month in months 4 to 12, $4,000 a month in months 13 to 36. 2% of sales from month 37. The charge falls by three quarters once the location reaches that size.
| Months open | Requirement | A year | Average revenue at that age | Share of revenue * |
|---|---|---|---|---|
| 4 to 12 | $5,000 a month | $60,000 | $313,632 | 19.1% |
| 13 to 36 | $4,000 a month | $48,000 | $420,811 | 11.4% |
| 37 and after | 2% of sales | $12,186 | $609,310 | 2.0% |
| 37 and after, on a declining location | the greater of 2% or $3,500 a month | $42,000 | $609,310 | 6.9% |
The requirement schedule is as the brand reported it. The annual and share columns are marked *, set against the filed average revenue for the maturity group matching each stage.
What the fees come to, and what it costs to open. (Item 7) (Items 5 and 6)
| Charge | Rate | At $722,816 * |
|---|---|---|
| Royalty | 6% of gross sales | $43,369 |
| Brand fund | 2% of gross sales, up to 3% | $11,311 |
| Technology fee | $300 to $333 a month once open | $3,720 |
| Local advertising management fee | $125 a month | $1,800 |
| Annual reunion fee | $125 a month plus the balance | $1,350 |
| Together | 8% plus flat charges | $61,550, or 8.5% |
| Initial franchise fee | $49,000 for one, $88,000 for two, $125,000 for three | n/a |
| Launch fee | $30,000 for the first, 10% less for each after | n/a |
| Pre-opening marketing package | $15,000 | n/a |
| Total investment | $667,610 to $1,122,153 | n/a |
Rates, fees and the investment range are as the brand reported it. We worked out the dollar column, applying each charge to the $722,816 average of the 29 locations that reported their costs, at the monthly rates in the document.
Payback on the low estimate is 4.39 years at the filed average. $667,610 against $152,070 *, stretching to 7.38 years on the high estimate.
Franchise fees take 8.5% and the building takes 13.5%. $61,550 against $97,656 *. The lease is a bigger decision than the franchise agreement.
All 73 locations
Every location, with its visits and its check.
All 73 owner-run locations, sorted by sales within each age group. The visit count and the two category checks are what separate them: the highest-selling locations runs 26,410 visits and the lowest-selling 2,919.
| Location | Net revenue | Visits | Average check | Daycare check | Boarding check | Boarding share * |
|---|---|---|---|---|---|---|
| Open 10+ years, 1 location | ||||||
| 2 | $1,294,019 | 24,484 | $53 | $35 | $60 | 49% |
| Open 5+ years, 11 locations | ||||||
| 8 | $1,359,016 | 26,410 | $51 | $51 | $44 | 49% |
| 15 | $1,063,330 | 23,762 | $45 | $30 | $51 | 44% |
| 7 | $1,032,679 | 22,967 | $45 | $34 | $49 | 46% |
| 4 | $907,766 | 18,566 | $49 | $31 | $61 | 51% |
| 6 | $862,557 | 19,093 | $45 | $30 | $54 | 55% |
| 10 | $840,892 | 19,844 | $42 | $30 | $52 | 46% |
| 3 | $774,229 | 15,326 | $51 | $31 | $65 | 53% |
| 14 | $734,978 | 15,629 | $47 | $29 | $56 | 62% |
| 9 | $594,518 | 15,253 | $39 | $31 | $48 | 47% |
| 12 | $591,247 | 14,281 | $41 | $27 | $44 | 60% |
| 11 | $508,658 | 12,016 | $42 | $23 | $48 | 53% |
| Open 3–5 years, 22 locations | ||||||
| 20 | $1,231,060 | 22,439 | $55 | $35 | $64 | 49% |
| 27 | $879,167 | 20,279 | $43 | $30 | $48 | 46% |
| 25 | $817,916 | 16,881 | $48 | $32 | $62 | 50% |
| 36 | $814,800 | 13,386 | $61 | $39 | $74 | 48% |
| 16 | $783,081 | 16,518 | $47 | $31 | $52 | 53% |
| 33 | $743,760 | 17,893 | $42 | $28 | $46 | 56% |
| 38 | $709,344 | 15,156 | $47 | $32 | $62 | 49% |
| 19 | $693,292 | 15,592 | $44 | $30 | $57 | 43% |
| 28 | $659,101 | 13,555 | $49 | $29 | $52 | 67% |
| 34 | $650,565 | 14,843 | $44 | $33 | $55 | 43% |
| 29 | $633,157 | 17,108 | $37 | $25 | $45 | 51% |
| 18 | $577,071 | 13,008 | $44 | $28 | $55 | 55% |
| 17 | $554,680 | 9,836 | $56 | $37 | $65 | 65% |
| 22 | $539,219 | 13,368 | $40 | $30 | $46 | 41% |
| 30 | $487,716 | 11,115 | $44 | $30 | $51 | 48% |
| 37 | $465,383 | 10,321 | $45 | $29 | $48 | 63% |
| 35 | $427,281 | 10,089 | $42 | $29 | $53 | 58% |
| 23 | $414,867 | 10,729 | $39 | $27 | $44 | 58% |
| 32 | $376,477 | 7,379 | $51 | $35 | $59 | 56% |
| 31 | $334,803 | 9,752 | $34 | $29 | $30 | 61% |
| 21 | $323,128 | 8,326 | $39 | $28 | $39 | 55% |
| 24 | $288,962 | 8,550 | $34 | $22 | $40 | 59% |
| Open 2–3 years, 17 locations | ||||||
| 43 | $926,392 | 21,025 | $44 | $28 | $50 | 56% |
| 44 | $660,079 | 13,792 | $48 | $33 | $53 | 52% |
| 41 | $613,584 | 18,345 | $33 | $26 | $44 | 42% |
| 40 | $573,713 | 13,548 | $42 | $29 | $50 | 51% |
| 54 | $546,497 | 11,078 | $49 | $35 | $54 | 60% |
| 52 | $485,743 | 9,373 | $52 | $37 | $70 | 38% |
| 51 | $440,566 | 9,354 | $47 | $32 | $57 | 48% |
| 46 | $430,359 | 8,924 | $48 | $31 | $48 | 41% |
| 48 | $380,902 | 8,088 | $47 | $31 | $52 | 53% |
| 50 | $369,961 | 6,811 | $54 | $36 | $57 | 56% |
| 39 | $367,034 | 9,540 | $38 | $28 | $45 | 52% |
| 53 | $318,299 | 6,616 | $48 | $29 | $58 | 57% |
| 47 | $314,225 | 8,914 | $35 | $25 | $51 | 46% |
| 42 | $304,094 | 6,896 | $44 | $26 | $48 | 68% |
| 45 | $166,744 | 3,765 | $44 | $28 | $53 | 68% |
| 55 | $162,997 | 4,881 | $33 | $22 | $43 | 43% |
| 49 | $92,602 | 2,919 | $32 | $19 | $42 | 54% |
| Open 1–2 years, 22 locations | ||||||
| 59 | $615,906 | 14,614 | $42 | $29 | $42 | 60% |
| 67 | $587,256 | 13,426 | $44 | $31 | $53 | 54% |
| 58 | $520,093 | 12,874 | $40 | $28 | $52 | 49% |
| 75 | $519,906 | 10,290 | $51 | $34 | $64 | 48% |
| 57 | $468,635 | 11,517 | $41 | $30 | $35 | 53% |
| 79 | $394,223 | 11,084 | $36 | $23 | $47 | 49% |
| 60 | $336,496 | 8,297 | $41 | $31 | $46 | 42% |
| 56 | $318,734 | 8,086 | $39 | $24 | $35 | 50% |
| 76 | $314,462 | 7,930 | $40 | $24 | $50 | 53% |
| 72 | $313,310 | 7,872 | $40 | $23 | $51 | 51% |
| 73 | $287,298 | 6,784 | $42 | $25 | $48 | 64% |
| 70 | $280,261 | 6,994 | $40 | $24 | $58 | 55% |
| 65 | $276,691 | 7,488 | $37 | $25 | $47 | 45% |
| 71 | $234,440 | 5,700 | $40 | $27 | $50 | 60% |
| 62 | $231,243 | 5,081 | $46 | $35 | $61 | 43% |
| 61 | $219,633 | 4,932 | $45 | $26 | $61 | 53% |
| 77 | $205,737 | 4,765 | $43 | $28 | $47 | 64% |
| 68 | $195,711 | 4,809 | $41 | $20 | $56 | 62% |
| 74 | $188,023 | 4,897 | $38 | $28 | $43 | 54% |
| 64 | $155,496 | 4,137 | $38 | $23 | $54 | 54% |
| 66 | $128,688 | 3,193 | $40 | $35 | $43 | 52% |
| 78 | $107,672 | 3,329 | $32 | $18 | $47 | 51% |
Revenue, visit counts and the three check figures are as the brand reported it for each location. The boarding share column is marked *, dividing each location's filed boarding revenue by its filed net revenue.
The top location bills 14.7 times the bottom one. $1,359,016 against $92,602 on 26,410 visits against 2,919, and the checks are $51 against $32, so the count does almost all of it.
The highest average check belongs to a mid-sized location. Location 36 runs $61 a visit on 13,386 visits, which produces $814,800, more than two locations doing half again its volume.
Questions we get asked
Questions owners ask.
What does a Hounds Town location bill?
An average of $520,855 across the 73 franchised locations in the reporting group, with a median of $485,743, a high of $1,359,016 and a low of $92,602. By age the averages run $313,632 at one to two years, $420,811 at two to three, $609,310 at three to five and $842,716 at five or more.
What does a location keep?
21.0% of revenue across the 29 locations open three full years that filed a profit statement, which is $152,070 on $722,816 of revenue. The median location kept 23.6%, the best $460,105 and the lowest-selling lost $131,405.
Where does the money go?
Wages take 37.2% of sales, rent 13.5%, the brand's charges 8.5%, direct running costs 6.9%, products 4.2%, marketing 3.7% and utilities 3.5%.
How much must I spend on local advertising?
$5,000 a month from month four to month twelve, $4,000 a month from month thirteen to month thirty-six, and 2% of gross sales from month thirty-seven. Compliance runs on a rolling three-month average, and a shortfall may be payable to the brand fund.
What does it cost to open?
$667,610 to $1,122,153. Building work is $450,000 to $700,000 of that. A single franchise costs $49,000, two cost $88,000 and three cost $125,000, plus a $30,000 launch fee for the first location and a $15,000 pre-opening marketing package.
Run your own numbers.
The Franchise Finance Diagnostic runs the same checks on your own numbers. It scores where you stand and compares you with Item 19 of your brand’s FDD. It works out what one location earns and spends, and builds a 13-week cash forecast. Checks whether you are ready to open another one. It is free and it runs in your browser.
Launch the diagnostic →How many visits did you run last week?
A structured review of your unit economics, cash forecast. Reporting, built around visits and average check tracked separately, boarding mix measured against daycare. Rent read as a percentage every month.
Request the review