PetSmart Veterinary Services

Item 7 lays out the initial investment at $206,150 to $316,000, covering build-out for a 1,500-3,000 sq ft vet hospital within PetSmart, equipment, initial inventory, and three months' operating capital. The $10,000 franchise fee gets you the license to operate under PVS standards, targeting urgent care, wellness exams, and pet products. Ongoing fees bite with tiered royalties starting at 2% on the first $750,000 in gross sales, scaling to 3.5% beyond, plus 1.5% brand fund (up to 2.5%) and a flat $750 monthly technology fee—potentially totaling 6%+ on higher revenues, pressuring margins in a high-overhead vet space.

System maturity raises flags: just 38 locations with zero net growth year-over-year, 15 terminations (nearly 40% churn), and only 4 projected new units. No Item 19 disclosure means no average unit volumes or profit benchmarks, forcing reliance on FDD projections and franchisee calls for viability clues. For vet pros eyeing PetSmart synergy, low entry fee tempts, but stagnation and exits signal execution risks—your due diligence must probe local demand and support quality.