Pet Franchise Definitions and Acronyms for Shop Owners to Know

Terms & Acronyms Constantly Change, So Keep Updated When Researching the Pet Franchise

Arbitration
An Alternative method of dispute resolution outside of a courtroom. Both parties of the argument are heard by a third-party non-partisan called the arbitrator. The decision is considered objectively and is binding. In terms of franchise, arbitration can be voluntary or mandatory and is often included as clause in contracts and documents.

Build Out

A type of property construction project in which a retail shell adds fixtures, equipment, and decor required or recommended by a franchisor to adopt company culture, brand, and interior look of franchise.

Enterprise Zones

A government program that provides funding and tax credits to individuals who open businesses in these areas. Usually inner-city and metropolis locations that aid in opening job market for local residents and gentrification programs. A very important term for Pet Franchise prospects where urban developments are a tactful purchase.

FDD–Franchise Disclosure Document

A legal document franchisors must present to prospective franchisee in a timely fashion to help them make an informed decision.

IFA–International Franchise Association

An independent organization that represents franchising on an international level through development assistance. The IFA is important for pet franchisees to be aware of to ensure updated information and programs on industry changes, programs, and education.

LP–Licensed Products

A business agreement when a company gives another company permission to manufacture its product for a specified agreed upon payment. For Pet Franchisees, there are not many faster or more lucrative ways to grow a business than by licensing patents, trademarks, copyrights, designs, and other intellectual property to others.

SBA–Small Business Administration

A government agency to help small business owners like franchisees, receive funds needed to open a business.

SBNO–Sold But Not Operated

Refers to a franchised unit that has been sold but has not begun conducting business, or operating.

7(a) Loan

A loan for eligible borrowers to start, acquire, or expand a small business. This type of loan is the basic and most commonly used loan within SBA loan program. This loan from a bank or participating commercial lending institution that the SBA guarantees 80% of the loan principal for.

Patriot Express

An SBA administered loan for veterans, or veteran families, who want to start or expand a business formerly known as CAT B flight.

PLP–Preferred Lenders Program

An SBA program that expedites procedural financial assistance. Within this program, the SBA delegates final credit decision, servicing and liquidation authority, and responsibility to selected PLP lenders. Loan eligibility criteria is constantly monitored through records held by the SBA. Lenders must demonstrate comprehensive proficiency to loan processing and servicing. If a payment default were to occur the PLP lender agrees to liquidate all business assets before asking SBA to honor its guaranty.

SCORE–Service Corps of Retired Executives

A program through the SBA that pairs up prospective franchisees with experienced executives through a mentorship program. Splash and Dash Groomerie & Boutique offers similar advice without assistance of the SBA.

Turnkey

A property location that a franchisor builds, then sells to a franchisee fully ready for operation.

VAT–Value Added Tax

A consumption Tax on the amount by which the value of an article has been increased at each stage of its production or distribution which is relevant for pet franchises supplying products at every level of sale.

Vicarious Liability

A term used when employees or franchisee is suing the franchisor for damages, intimating that the franchisor has control over the franchisee’s business and is responsible for the injury occurred on the franchisee’s property.

Is a Dog Bakery the Best Pet Franchise Oppportunity?

If you want to find the right pet business to buy, it can be hard. Sure you may know that franchising is the ideal way to go, but which one? There are so many options out there in different categories that it can seem overwhelming. Some people think that a dog bakery is the best option for a pet franchise opportunity. So let’s take a look at what this could mean for you as a franchisee.

 

The Advantages of a Dog Bakery

The nice thing about a dog bakery for a pet franchise opportunity is that it is still unique enough to get people excited. Pet parents can visit a boutique for pets just about anywhere. But a bakery is unique. There are also many types of baked goods you can offer in the store to meet the needs of all types of dogs and pet parents. Many pet parents are looking for fresh and natural treats and pets for their pet and this can be just what they are looking for.

 

The Disadvantages of a Dog Bakery

While this may be trendy at the moment, there are still some disadvantages that can take away from the excitement of this as the best pet franchise opportunity. The biggest issue with these stores is the high amount of loss. Because the items here are made in store, as with any bakery, the items will go bad in a shorter period of time. This waste can be a hard expense for many new businesses to absorb. It is something you definitely need to think about.

 

Another issue you need to think about with this for a pet franchise opportunity is the high startup costs. This is because you will need to buy all the equipment to make the baked items along with the ingredients for them. This can add up quickly. Even the display cases and other equipment for the store can get pricey.

 

So is a Dog Bakery the Best Pet Franchise Opportunity?

This is not just a cut and dry answer. The truth is that people can be very successful with their dog bakery. You may find that you can be just as successful too. However, it does have higher costs than some of the other pet franchises out there. Along with this, they are still fairly new which means that many people do not even know about them. This is why it may be helpful to look at some of the other franchise options available within the pet industry.