Everyone loves pets or they should – they bring a new dimension to living. Lots of people have cats or dogs but you can have a pet rabbit, guinea pig, rat, mice, bird, lizard, turtle or tortoise but avoid a pet crocodile.
Life is better with a pet but they can’t care for themselves and that why humans exist. In New Zealand we have many pet franchises including, Animates, Bark Busters, Jim’s Dog Wash, Pets in the City, The Cats & Dogs Dinner Co. We also have franchised pet shops including and Pet Essentials.
I really like Petstock which supplies a lot of different pet foods, pet services, a vet and a dogwash service. In fact, I take my miniature schnauzer to the local Petstock shop for a groom and a wash and they do an excellent service. Petstock says:
“Our connections with pets help us grow as people. At the Petstock Group, together we live by this truth. We are continually inspired by pets and animals to be better people, both in our careers and our everyday life.” – Shane Young, Petstock Group CEO
As with any franchise purchase, you must do your due diligence. This includes finding out information from the pet franchisor such as:
- Franchisor’s financial health and history
- How long has the system been franchising
- Details of pilot operation results – how many different animals
- Type and level of head office support and full details of the training
- Territorial practices and exclusivity terms
- Do you need to buy products from the franchisor?
- Operating restrictions and launch assistance
Once you like the franchisor and the franchisor likes you and you have found out necessary information, you should be given a copy of the franchise agreement. This document will cover the following:
- Geographical area and types of customers to whom you may sell
- Your rights to sell or transfer ownership of the business
- Nature and extent of your obligations to the franchisor, including buying supplies and services
- Right of renewal
- Terms and conditions under which you may terminate the contract, if any
- Fees which you would have to pay like royalties and marketing
- Precise boundaries of the territory
- Compliance with the Animal Welfare Act 1999
- Compliance with local Council regulations
Buying a pet franchise can be very exciting. Often emotion gets in the way but a little bit is fine. At the end of the day you must make your decision based upon legal advice, an accountant’s advice and the professionalism and warmth of the franchisor. Also if you have borrow any money, then you will need a friendly bank to assist.
Finally, always remember if you are having a ruff-day, just think paws-tively!
Stewart Germann
Stewart Germann Law Office
Auckland, New Zealand
E-mail: stewart@germann.co.nz
Website: www.germann.co.nz