Hounds Town USA franchise unit economics
Hounds Town USA franchisees run dog daycare, boarding and spa businesses from warehouse-style buildings, selling daycare days and boarding stays.
Hounds Town USA in the news
- Hounds Town USA Appoints Breken Randall as Vice President of Marketing Amid Continued National Growth · Franchising.com ·
The Hounds Town USA headline above is the publisher's own and links to the publisher. Averan Advisors checked this Hounds Town USA link on 11 October 2026. Franchise news lists news on 95 brands, including Hounds Town USA. Hounds Town USA is in the Dog Daycare and Boarding franchise guide.
Hounds Town USA franchise at a glance
Hounds Town USA’s Item 19 reports 2025 revenue, visits and average check for 73 franchised locations by years open, and a profit statement for 29 locations open three years or more.
Hounds Town USA franchisees averaged $520,855 of sales in 2025, with a median of $485,743, according to Item 19 of Hounds Town USA’s 2026 FDD, issued 30 April 2026. The 73 in that group are 76%* of Hounds Town USA’s 96 locations. Fees paid to Hounds Town USA come to about 8.5%* of sales.
- A Hounds Town USA franchise costs $667,610 to $1,122,153 to open, including a $49,000 initial franchise fee, according to the brand's 2026 FDD.
- Hounds Town USA charges a royalty of 6% of sales, a 2% brand fund contribution and a $440 monthly technology fee.
- Hounds Town USA’s 29 locations open three years or more averaged net operating income of 21% of revenue in 2025. Hounds Town USA’s FDD defines net operating income as gross profit less operating expenses, including rent, wages and imputed franchise fees, before interest, depreciation, amortization, taxes and owner draws.
- At the average Hounds Town USA location, wages took 37.2%, rent and space costs took 13.5% and cost of goods took 4.2% of sales.
- Work out Hounds Town USA's fees at your own sales with the minimum fee calculator.
- All 73 Hounds Town USA 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.
These figures come from Hounds Town USA's 2026 Franchise Disclosure Document, as the brand reported them, and were read by Averan Advisors.
Own this franchise?
See what your numbers should look like every month.
Talk to Averan → Move your books and accounting to Averan →- 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 *, which is 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 requirement is $5,000 a month in months 4 to 12. $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. Rent accounts for 7.7 points of the 15.8-point profit gap between them *, and wages run 37% on both sides.
- 67 franchise agreements are signed with the location still to open, against 22 openings last year. That is 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 net operating income 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 reports every location and groups them by years open. The highest-selling location sold $1,359,016 in 2025 and the lowest-selling $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
- Site and trade area.The highest-selling Hounds Town USA location sells 14.7× the lowest-selling one. Catchment, daytime population and neighboring businesses affect where a location falls.
- Opening cost range.Opening costs $667,610 to $1,122,153, a 1.7× range inside one brand.
- Lease cost.Occupancy cost ran 13.5% of sales in this filing. Rent stays the same when sales fall, so it takes a larger share of sales at lower-selling locations.
- Cash needed in the first year.This filing shows how a new location builds up: the month sales cover costs, and how much cash you fund before then.
Live operating levers
- Wages.Wages take 37.2% of sales, against net operating income of 21.0%.
- Occupancy cost.Rent and building costs take 13.5% of sales here. The rent is fixed when the lease is signed, so this share falls only as sales per square foot rise.
- Visits.Track how many visits happen, what each one is worth, and how many customers book the next one before they leave.
Context you underwrite around
- Locations included.These figures cover 73 of 96 locations. Locations open less than the full year, brand-owned, or not meeting the reporting criteria are excluded.
- What the filing does not include.Item 19 publishes profit figures only for the 29 Hounds Town USA locations open three years or more, plus the affiliate location. It gives no profit figures for younger locations.
The first year is visits
Revenue and visits by years open, 2025
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.
Revenue growth falls from 39.68% in years two to three to 1.44% after five. That is 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 a 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.
Revenue mix, daycare and boarding, 2025
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
Franchised and affiliate profit and loss, 2025
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 are 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 equals about six visits a day. $97,656 at a $44.43 average check is 2,198 visits a year *; wages take 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.
Discounts available
- Hounds Town USA charges $88,000 for a two-unit package and $125,000 for a three-unit package, against $49,000 for one.
- Hounds Town USA takes 10% off the first unit's fee for active-duty military and honorably discharged U.S. veterans.
From Item 5 of the Hounds Town USA 2026 FDD. The costs on this page use the full initial franchise fee for one unit, before any discount.
Fees and the advertising rule
Local advertising requirement by location age
Royalty is 6% and the brand fund 2%. The line that actually moves the early years is the local advertising requirement. It is $5,000 a month in months 4 to 12 and $4,000 a month in months 13 to 36. From month 37 it is 2% of sales. 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.
Royalty, fees and cost to open
| 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. That is $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%. That is $61,550 against $97,656 *. The lease is a bigger decision than the franchise agreement.
All 73 locations
Visits and check by location, 2025
The table covers 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 location 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.
How much does a Hounds Town USA franchise make?
Hounds Town USA franchisees averaged $520,855 of sales in 2025, with a median of $485,743, according to Item 19 of Hounds Town USA’s 2026 FDD, issued 30 April 2026. The 73 in that group are 76%* of Hounds Town USA’s 96 locations. Fees paid to Hounds Town USA come to about 8.5%* of sales.
What does a Hounds Town location bill at Hounds Town USA?
Hounds Town franchised locations averaged $520,855 across the 73 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 Hounds Town USA 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 top kept $460,105 and the lowest result was a loss of $131,405.
Where does the money go at Hounds Town USA?
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 at Hounds Town USA?
The requirement is $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.
How much does a Hounds Town USA franchise cost to open?
A Hounds Town USA franchise costs $667,610 to $1,122,153 to open. 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.
- The filing gives no attainment figure. The filing does not say how many locations reached the average it publishes.
Questions worth putting to Hounds Town USA
The filing answers what it answers. These are the gaps an owner or a buyer should close directly.
- Is the profit figure in Item 19 before or after owner pay, and how many locations sit below it?
- Which factors does Hounds Town USA see in its highest-selling locations, such as trade area, years open and size?
- How long does a new location take to reach the average you publish, and what does the build-up look like month by month?
- At what level of sales do the minimum charges stop applying and the percentage take over?
- How many Hounds Town USA locations closed, were sold, or changed hands last year, and why?
Run your own numbers.
The Franchise Numbers Check 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. It 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?
We review your unit economics and cash forecast and build your reporting around visits and average check tracked separately, boarding mix measured against daycare. Rent read as a percentage every month.
Talk to AveranWhere these figures come from.
Every figure here comes from Hounds Town USA, LLC’s 2026 FDD and is unaudited by us. We are unaffiliated with the brand. Calculations of our own are labeled where they appear, the figures describe past performance at other businesses and are not a projection of yours. This page is an educational summary. It is not an offer to sell a franchise, and it is not financial, legal or tax advice. Hounds Town USA® is a registered trademark of its owner. How Averan reads a Franchise Disclosure Document.
These figures come from the brand's disclosure. They are not a forecast, an offer to sell a franchise or advice. Source: Hounds Town USA, LLC, 2026 Franchise Disclosure Document, issued 30 April 2026.
the franchise library, all 447 brands · how franchise unit economics work · running the books across several locations · what Averan does for franchise owners
Hounds Town USA reads against the rest of the dog daycare and boarding group: Camp Bow Wow · Central Bark · Dogtopia. The dog daycare and boarding guide compares all of them on the same figures.
Questions owners ask next
The figures above raise these, and each one is answered on its own page.
- At what level of sales does a minimum fee stop costing me more than the percentage?It works out the sales level where a minimum fee stops applying.
- How much cash do I fund before a new location covers its own costs?It builds a 13-week forecast for the months before break-even.
- My payroll percentage keeps climbing. Is that a payroll problem?It shows how to tell whether payroll is rising or revenue is falling.
- What does this location earn on the money I put into it?It works out the payback period and cash-on-cash return for one unit.
- How much of Item 19 can I rely on?It explains what an Item 19 financial performance representation tells you and what it leaves out.