When it comes to pet care, Dogtopia has quickly become a household name. The brand has seen tremendous growth and success, recently celebrating a huge milestone in May: awarding 500 franchise agreements since new ownership in 2016. In addition, the company has opened over 200 locations across North America during that time and has been ranked #1 in the Pet Services category in Entrepreneur Magazine's Franchise 500 List for several years in a row.
Dogtopia has been successful in many aspects of its business, with real estate being a critical component. To ensure their franchisees are presented with all optimal locations, Dogtopia partnered with Morrow Hill in 2022 to assist with their real estate needs.
Morrow Hill is a commercial real estate firm that specializes in franchise real estate and has been working with dozens of franchise brands for several years. Throughout their partnership, Morrow Hill has provided continued expert guidance on real estate strategy, site selection, and lease negotiation. With Morrow Hill's help, Dogtopia is able to identify and negotiate prime locations for its franchisees and has created a seamless real estate process for the brand.
Dogtopia’s Chief Growth Officer, Alex Samios, and Morrow Hill’s Co-Founder, Jonathan Hill, recently sat down to discuss Dogtopia’s success and offer some advice to emerging franchise brands.
Dogtopia has been the fastest-growing pet franchise for years with 40+ leases already executed this year and a trajectory of 50 stores opening, along with another 350 stores that are sold and in development. What are some key strategies you would attribute to this success?
Samios:
Dogtopia's growth can be attributed to its dedicated Growth Team. This internal team of 11 provides support on everything from site selection, demographic analysis, geographic modeling, lease negotiations, design, construction, and complete on-site project management for our franchisees. We also work with leading supply partners who are experts in their fields. For instance, we partner with Morrow Hill for site selection and lease negotiation to ensure all locations adhere to our specific site criteria and get to lease execution in record time.
Hill:
Dogtopia's exceptional support team offers extensive guidance to franchisees, streamlining our process and enabling the Morrow Hill team to work more efficiently. Their sophisticated approach ensures that everyone is on the same page, which is a major advantage for us when securing new sites.
How do you determine the ideal site for a new franchise location?
Samios:
We have invested considerable time and resources into understanding who our customers (pet parents) are and their preferences. We use a software platform to digest that information and we have mapped the entire country. By combining this data with Morrow Hill's own technology and industry expertise, we can identify the most optimized markets for our franchisees.
Hill:
Our dedicated team approach along with our proprietary mapping and lease tracking software enables us to gain a deep understanding of the unique requirements of each Dogtopia location. Using this data, we are able to pinpoint sites that will enable each franchise location to thrive.
As an established franchise brand, what advice would you offer to new brands entering the market to help with their success?
Samios:
When it comes to the success of a franchise location, the operator plays a crucial role, regardless of the quality of real estate. It's what happens within the four walls of a location that ultimately determines its success. While having homerun sites is certainly an advantage, franchisors should primarily focus their resources on optimizing operational excellence and executing the playbook in the early stages. Real estate is just an added bonus.
Hill:
I couldn't agree more. While Morrow Hill can assist franchisees in finding the perfect site, it's ultimately up to them to run the business properly and efficiently. Without that, success will be difficult to achieve.
Looking ahead, what are the plans for Dogtopia’s continued growth and expansion in the coming years?
Samios: Our near-term goal is 400 daycares operating by the end of 2025, and we have visibility on 1,200 locations nationally as the long-term goal. We are also at a critical point in evolving our brand as the leading and trusted authority when it comes to wellness. We started as a kennel, upgraded to a daycare - and now we're looking toward the future as a wellness brand while delivering on our noble cause – to enhance the joy of pet parenthood and enable dogs to positively change our world.
To explore exciting Dogtopia franchising opportunities, visit
www.dogtopia.com/franchising. For comprehensive insights into Morrow Hill's real estate solutions, visit
www.morrowhill.com.
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