PSP

The question every serious franchise investor should ask before committing capital is deceptively simple: is this brand growing in a durable industry, with defensible unit economics, and a corporate infrastructure capable of sustaining franchisee success for the long term? For the Psp franchise — Pet Supplies Plus — the answers are grounded in three decades of operating history, a $2.7 million average unit volume, and a network that has expanded to approximately 730 locations across 43 U.S. states as of the most recent reporting period. Pet Supplies Plus was founded in 1988 and opened its first franchise location in 1989, establishing one of the earliest and ultimately most successful franchise models in specialty pet retail. Headquartered in Livonia, Michigan, the company has grown from a regional Midwest concept into what is formally recognized as North America's largest pet retail franchise. The brand currently operates under independent ownership, having separated from its former parent company, Franchise Group, on December 8, 2025, and is now owned by a consortium of banks and private equity firms with a stated mandate of pursuing aggressive growth and franchise expansion. CEO Chris Rowland leads both Pet Supplies Plus and the affiliated Wag N' Wash brand, with Nick Russo serving as Chief Development and Stores Officer and Dan McNamara as Chief Financial Officer. Franchise Group originally acquired Pet Supplies Plus in an all-cash transaction valued at approximately $700 million that closed in 2021 — a valuation that reflects the brand's substantial market position. The Psp franchise opportunity exists at the intersection of a recession-resistant industry and a franchise system that has ranked number one in its category by Entrepreneur Magazine for 11 consecutive years, making it one of the most decorated and consistently validated pet retail franchise opportunities available to investors conducting independent due diligence today.

The pet industry is one of the most structurally compelling franchise investment categories in the United States, and the macroeconomic data supporting that claim is unusually consistent over time. More than 65% of U.S. households own at least one pet, creating a massive and stable consumer base that spends continuously on food, supplies, grooming, and wellness products. Americans collectively spent $72 billion on the pet industry in a recent benchmark year, and projections indicated that figure would rise to $96 billion — a trajectory consistent with the industry's year-over-year growth rate of over 6%, which is notably characterized by recession resistance. Unlike discretionary retail categories that contract sharply during economic downturns, pet spending has historically remained stable because pet owners treat their animals as family members, sustaining demand through multiple economic cycles. Consumer behavior within the pet category has shifted significantly toward premiumization, with strong and accelerating demand for natural pet foods, organic treats, specialty nutrition, and wellness-oriented goods and services — all categories that independent neighborhood-format retailers like the Psp franchise are well-positioned to serve with greater depth and personalization than mass-market big-box competitors. The retail pet segment is also benefiting from the structural tailwind of omnichannel commerce, as consumers increasingly expect the ability to purchase online and pick up in store or receive same-day local delivery — capabilities that Pet Supplies Plus has built directly into its operating model. The broader franchise market surrounding all of this is itself expanding rapidly, with the global franchise market projected at USD 133 billion in 2024 and expected to reach USD 307 billion by 2033, representing a compound annual growth rate of 9.73%. North America is projected to contribute 38.9% to that global franchise market growth through 2030, which anchors the Psp franchise opportunity squarely within one of the highest-growth investment sectors on the planet. Additionally, consumer preferences are shifting toward eco-friendly and sustainable businesses, a trend that is beginning to influence purchasing decisions across pet retail and represents a meaningful opportunity for brands with private-label product innovation capabilities.

The Psp franchise investment begins with a single-unit initial franchise fee of $49,900, which sits at a competitive level within the specialty pet retail category. The company offers a 20% discount off the first franchise fee for qualified honorably discharged veterans, a meaningful incentive that reduces the upfront fee to approximately $39,920 for eligible candidates. Comparable discounts are available for current and former first responders and current Pet Supplies Plus employees, though these incentives apply only to the first franchise unit awarded and cannot be combined with each other. The total estimated initial investment to open a Pet Supplies Plus location ranges from $536,520 to $1,965,005, a spread that reflects the genuine variability of real estate, construction, and build-out costs across different markets and store formats. The cost drivers within that range include store size, local rent rates, negotiated tenant improvement allowances from landlords, and regional construction conditions — all variables that a prospective Psp franchise investor should model carefully for their specific target market before making a capital commitment. Ongoing royalty fees are structured at 2% of monthly gross sales for the first 12 months of operation, increasing to 3% of monthly sales for the remainder of the franchise agreement term — a royalty structure that Pet Supplies Plus explicitly positions as the lowest in its competitive category. The advertising obligation includes a current annual charge of $1,584 for text message reminder services, billed at $132 per month, with any additional cooperative advertising requirements determined by the franchisee's regional cooperative and subject to a majority vote before increases can be implemented. Prospective franchisees must demonstrate a minimum net worth of $600,000 and liquid assets of at least $200,000 to qualify for consideration. Pet Supplies Plus does not offer direct or indirect financing and will not guarantee franchisee notes, leases, or other financial obligations, which means external financing through SBA-backed lending or conventional commercial channels is the expected path for most new operators. The combination of a sub-$50,000 franchise fee, a royalty structure the franchisor describes as category-lowest, and an investment ceiling below $2 million positions the Psp franchise as a mid-to-premium tier opportunity relative to the full spectrum of retail franchise investments, with accessible entry-level economics relative to the $2.7 million average unit volume the system produces.

Daily operations within a Pet Supplies Plus franchise are structured around the neighborhood pet store model — a format intentionally designed to differentiate from both e-commerce giants and large-format superstores through localized service, community relationships, and product curation tailored to the pets and pet owners in the immediate trade area. Prior experience in the pet industry or franchising is explicitly not required, a deliberate design choice that reflects the comprehensiveness of the Psp franchise support infrastructure. Before a new store opens, Pet Supplies Plus deploys a dedicated setup crew to assist with the physical installation of racking systems and initial store stocking, reducing the operational burden on the new franchisee during the most stressful phase of the launch process. District team leaders provide ongoing support across a broad range of operational functions including ordering, merchandising, training, point-of-sale system configuration, and grand opening program execution, ensuring that new operators are not navigating launch logistics without experienced guidance. The franchise model provides franchisees with access to advanced marketing strategies, supply chain efficiencies derived from the system's collective purchasing scale, and a fully developed omnichannel shopping infrastructure that includes neighborhood store operations, direct-to-consumer local delivery, and buy-online-pickup-in-store functionality — capabilities that would cost an independent retailer millions to develop independently. Territory structure is defined through each individual Franchise Agreement, with the franchisor committing not to open a competing store under the same brand within the franchisee's exclusive territory. Territory sizing is flexible by design — there is no fixed minimum or maximum — with boundaries set based on population density, retail environment characteristics, and local demographic data, meaning two franchisees in different regions may hold territories of meaningfully different geographic size while maintaining comparable market opportunity profiles. The Psp franchise model is designed for owner-operator engagement, with franchisees encouraged to participate actively in store management and local community building, and the brand's multi-unit growth culture means that successful single-unit operators are routinely encouraged to develop additional locations.

Item 19 financial performance data is disclosed in the current Franchise Disclosure Document issued by PSP Franchising, LLC. The 2025 FDD reports an Average Unit Volume of $2.7 million based on data collected from 347 reporting financial stores that operated continuously throughout the full calendar year from January 1, 2024, through December 30, 2024. This AUV figure is a meaningful data point for investor analysis, though it is essential to recognize that revenue alone does not indicate profitability, as operating costs — including rent, labor, cost of goods, royalties, and local advertising — will vary substantially based on market, store size, and individual operator decisions. For additional systemic context, Pet Supplies Plus reported total systemwide revenue of approximately $1.2 billion for fiscal year 2020, with company revenue exceeding $825 million and Adjusted EBITDA of nearly $80 million in that same period — a system-level EBITDA margin of approximately 9.7% on company revenue that provides a directional signal on the underlying economics of operating within this franchise system. At the time of the Franchise Group acquisition in 2021, the combined systemwide annualized revenue including Pet Supplies Plus was projected to exceed $3.6 billion, illustrating the scale at which this system was operating even before its current growth phase. A prospective Psp franchise investor modeling unit-level profitability should work backward from the $2.7 million AUV using realistic assumptions for their specific market: cost of goods in specialty pet retail typically runs in the range of 55 to 65% of revenue, occupancy costs vary widely by market but represent a significant fixed-cost line, and the blended royalty rate of 3% is low relative to many retail franchise categories, which structurally improves franchisee margin retention. Payback period analysis depends heavily on build-out cost and achievable gross margin, but operators who achieve AUV at or above the system average with well-negotiated real estate terms are positioned to recover their initial investment within a timeframe consistent with mid-tier specialty retail benchmarks.

The growth trajectory of the Psp franchise over the past several years is one of the most compelling quantitative stories in the specialty retail franchise sector. The system grew from 600 locations in 2022 to approximately 730 locations across 43 states by the most recent reporting period, representing approximately 20% unit growth over three years while simultaneously expanding its geographic footprint from 39 to 48 U.S. states. In 2025, the company awarded 30 new franchise agreements and projects more than 20 new store openings in 2026. At the midpoint of 2024, the system had already recorded 23 franchise agreements sold and 40 new store openings, and the full-year 2024 target was 70 franchise unit sales and at least 45 new store openings. As of January 2021, the development pipeline included a backlog of over 185 new stores in various stages of development — a leading indicator of sustained near-term unit growth. The competitive moat for the Psp franchise is built on several reinforcing layers: brand recognition built over 36 years of operating history, supply chain scale that gives individual franchisees purchasing power they could not access independently, a proprietary omnichannel technology infrastructure, and a portfolio strategy that now encompasses both the Pet Supplies Plus and Wag N' Wash brands — allowing franchisees to operate under either banner and giving the corporate development team flexibility in real estate strategy. The 2022 acquisition of Wag N' Wash Natural Pet Food and Grooming expanded that brand from 15 to 26 locations, and the 2023 acquisition of 20 Loyal Companion Pet Stores — converting 10 into Pet Supplies Plus locations and 10 into Wag N' Wash stores — demonstrated an active acquisition-and-conversion growth strategy that accelerates presence in new markets faster than organic unit development alone can achieve. The December 2025 separation from Franchise Group and establishment as an independent entity with new private equity backing signals a strategic reset oriented specifically toward franchise growth, with independent governance structures for both the Pet Supplies Plus and Wag N' Wash brands.

The ideal Psp franchise candidate is a business-minded individual or management team with strong operational discipline, community relationship-building skills, and sufficient capital to absorb the investment range of $536,520 to $1,965,005 while maintaining the minimum $200,000 in liquid assets and $600,000 net worth that Pet Supplies Plus requires. No prior pet industry experience is required, which broadens the qualified candidate pool to include operators from retail management, logistics, multi-unit food service, and general small business ownership backgrounds. The brand's development culture actively encourages multi-unit ownership, and franchisees who demonstrate strong single-unit performance are positioned to expand their portfolios in adjacent territories as the system continues its push toward broader geographic coverage across the 43 states where it currently operates and the states where footprint is still developing. Available territories exist throughout the country, with the brand's stated emphasis on opening new locations suggesting that development-stage markets in underserved suburban and secondary markets may represent the highest-value territory opportunities for new entrants. The franchise agreement term structure governs the duration of the franchisee relationship, with renewal and transfer provisions detailed in the Franchise Disclosure Document — prospective investors should review those provisions carefully with qualified franchise legal counsel as part of their formal due diligence process. The timeline from signing a franchise agreement to store opening is influenced by real estate selection, permitting, construction, and training completion, with corporate support systems designed to compress that timeline through the dedicated setup crew and district team leader infrastructure described in the operating model.

The investment thesis for the Psp franchise rests on four convergent factors: a structurally growing and recession-resistant pet retail industry with over 65% U.S. household pet ownership and a consistent 6% annual growth rate; a 36-year-old franchise system that has demonstrated measurable unit growth of approximately 20% over the past three years; a disclosed Average Unit Volume of $2.7 million that provides a quantitative anchor for return-on-investment modeling; and a royalty structure the franchisor describes as the lowest in its competitive category, which structurally enhances franchisee margin retention relative to comparable retail franchise models. The brand's 11 consecutive years as Entrepreneur Magazine's number-one ranked concept in its category, combined with the strategic independence established in December 2025 under new private equity ownership, positions Pet Supplies Plus as a franchise system with both a validated operating history and fresh corporate momentum. For investors serious about evaluating this opportunity with the rigor it deserves, PeerSense provides exclusive due diligence data including SBA lending history, FPI score, location maps with Google ratings, FDD financial data, and side-by-side comparison tools that allow the Psp franchise to be benchmarked directly against competing concepts in the pet retail and specialty retail franchise categories. Explore the complete Psp franchise profile on PeerSense to access the full suite of independent franchise intelligence data.