How to Finance a Pet Supplies Plus Franchise: Inventory and Costs
By Anthony Cornella
A Pet Supplies Plus franchise loan finances a neighborhood pet store with a large opening inventory, a strip-center build-out and, in many stores, grooming and self-serve dog wash areas. Unlike a restaurant, much of the money goes into product on the shelves, so the financing plan has to account for both the store and the inventory that drives it.
This article covers what the franchisor discloses about its fees and investment, the net worth and liquidity it looks for, how its SBA Franchise Directory listing works, and how buyers of new stores, existing stores and multiple locations typically structure financing.
US Professional Funding is not affiliated with, sponsored by or endorsed by Pet Supplies Plus; the name is used only to describe the business. Figures from the franchisor’s disclosure document and franchise materials can change, loan programs and terms vary by lender and borrower, and every loan is subject to lender review and approval. Nothing here is legal, tax or investment advice, and buyers should review the current Franchise Disclosure Document (FDD) and franchise agreement with a qualified franchise attorney and accountant.
Pet Supplies Plus Franchise Loan at a Glance
- Initial franchise fee: $49,900 for a single unit, with a 20% discount on the initial fee for qualified veterans.
- Estimated initial investment: $536,520 to $1,965,005, including inventory, equipment, construction, signs and pre-opening expenses.
- Royalty: 2% of monthly sales for the first 12 months, then 3% of monthly sales for the life of the franchise agreement.
- Net worth: $600,000 or more.
- Liquid assets: $300,000 or more.
- Franchisor financing: the franchisor states that it offers no direct or indirect financing and does not guarantee franchisees’ notes, leases or other obligations.
- Opening timeline: about 120 days after lease execution; 5 to 12 months from site identification to opening.
- System size: nearly 700 stores, according to the franchisor’s 2023 materials.
- SBA Franchise Directory: listed (code S1293) with no additional notes.
What Is Pet Supplies Plus?
Pet Supplies Plus traces its roots to the late 1980s, when its founders opened a supermarket-style pet food and supply store in Redford, Michigan. The company began franchising in the 1990s and has grown into a national chain of neighborhood pet stores. The franchisor is PSP Franchising, LLC, which issued the 2025 FDD.
The stores sell pet food, treats, supplies and accessories for dogs, cats, fish, birds and small animals. Many locations also offer grooming and self-serve dog wash stations, and the brand supports online ordering with in-store pickup and delivery through its mobile app and loyalty program. The franchisor’s 2023 materials describe nearly 700 stores.
Store locations and format. According to the franchisor, stores are typically located in strip centers with a large anchor store near residential neighborhoods. Store size varies by market and site, and the investment range reflects that variation.
Why lenders view Pet Supplies Plus the way they do. Lenders generally see an established franchise system in a category driven by recurring purchases such as food and litter, an SBA directory listing and a franchisor with real estate, merchandising and opening support. Lenders also recognize the risks: retail margins are thinner than in many service businesses, inventory must be managed carefully, and stores compete with large retailers and online sellers. A good site, sound inventory management and adequate working capital help address those concerns.
Pet Supplies Plus Franchise Costs
Initial franchise fee. The initial franchise fee is $49,900 for a single unit. Qualified veterans receive a 20% discount on their first franchise fee. Most buyers pay the fee from personal funds at signing, though it can sometimes be included in an SBA loan once the full project is financed. Our article on franchise financing for veterans explains how veteran incentives fit into a loan request.
Real estate and build-out. Pet Supplies Plus franchisees generally lease space in shopping centers. The build-out includes flooring, lighting, electrical and plumbing, and, where offered, the plumbing and drainage for grooming and self-wash areas. The franchisor notes that the investment varies with store size, rent and tenant improvement allowances. A generous landlord allowance can significantly reduce the amount you need to borrow.
Equipment, fixtures and technology. Shelving and racking, refrigerated and frozen food cases, aquarium systems, grooming tables and tubs, dog wash stations, signage and POS systems are part of the investment. The franchisor provides a set-up crew to help build racking and stock the initial inventory.
Opening inventory. Inventory is a defining cost in a pet store. A new store must open with a full assortment of food, treats, litter and supplies, and that inventory is included in the franchisor’s investment range. Because inventory turns into cash as it sells, lenders view it differently from a build-out, but it also needs ongoing working capital to replenish.
Pre-opening costs and working capital. Training, grand opening marketing, initial payroll, deposits and an operating reserve fill out the rest of the budget.
Total investment. According to the franchisor, the all-in cost to open a Pet Supplies Plus typically ranges from $536,520 to $1,965,005. The franchisor says the range includes inventory, equipment, construction, signs and pre-opening expenses, and it directs buyers to Item 7 of the FDD for the full breakdown. Expect the Item 7 table to address categories such as:
- Initial franchise fee
- Lease deposits and prepaid rent
- Leasehold improvements and construction
- Fixtures, racking, equipment and signage
- Point-of-sale and technology systems
- Opening inventory
- Grand opening marketing and training
- Licenses, permits, insurance and professional fees
- Additional funds for the initial operating period
Use the dollar ranges in the current Item 7 table, together with your landlord’s allowance and contractor bids, to size your Pet Supplies Plus franchise loan.
Ongoing Fees and How They Affect Your Loan
Royalty. Pet Supplies Plus charges 2% of monthly sales for the first 12 months and 3% of monthly sales for the rest of the franchise agreement. The lower first-year rate eases cash flow during the ramp-up, but projections should show the step up to 3% in year two.
Advertising and technology. Review Item 6 of the current FDD for any advertising fund contribution, local marketing requirement, technology fees and transfer or renewal fees. These are not itemized in the franchisor’s summary materials, but they belong in your projections.
Inventory replenishment. Inventory is not a one-time cost. Food, litter and supplies must be reordered constantly, and seasonal items and new products add to the cycle. That makes working capital and supplier terms a recurring part of the financial plan.
How lenders factor these costs in. Lenders project sales, subtract cost of goods, royalties, rent, payroll and other expenses, and test whether the remaining cash flow covers loan payments with room to spare. Because pet retail margins depend on product mix, lenders like to see grooming and self-wash services, which carry no product cost, included realistically in the plan.
Franchisor Requirements for New Owners
Pet Supplies Plus’s franchise materials list these qualifications:
- Net worth: $600,000 or more.
- Liquid assets: $300,000 or more.
- Experience: prior pet industry or franchising experience is not required.
- Ownership model: the franchisor has described its model as suitable for semi-absentee ownership, with franchisees adding stores over time.
- Veterans: a 20% discount on the initial franchise fee for qualified veterans.
The approval process. The franchisor describes a 6-step path: introductions with a franchise development director, the FDD (sent after the franchise application), conversations with current franchise owners, a meeting with the team that includes touring a local store and meeting executive leadership, the franchise agreement after executive team approval, and an official welcome to the system.
Territory. The franchisor says territories are protected and defined by trade areas based on population and household counts. Lenders will want to understand your trade area when they review projections.
What the thresholds mean for financing. For a Pet Supplies Plus franchise loan, the $300,000 liquidity threshold supports the equity injection, the franchise fee and pre-opening costs, plus reserves after closing. Lenders will compare your liquidity to the size of your project, so a larger store or a multi-store plan will call for more cash. Our article on how much franchise you can afford walks through the math.
Ways to Own a Pet Supplies Plus
A new store. Most new owners open new stores with the franchisor’s real estate team and assigned commercial brokers. The franchisor reviews leases before signing, and the store typically opens about 120 days after lease execution. Our page on retail store start-up financing explains how lenders approach a new store.
Buying an existing store. With a system of nearly 700 stores, existing franchised stores do change hands. A resale gives a lender actual sales, margins and inventory turns to evaluate, and the buyer must be approved by the franchisor. Our page on retail store acquisition financing covers how purchases are structured, and our guide to buying a franchise resale addresses transfer approval and timing.
Multi-unit ownership. The franchisor has highlighted franchisees who own several stores, including large multi-unit groups. Lenders can underwrite additional stores using the cash flow from existing stores.
Financing Options for a Pet Supplies Plus Franchise
SBA 7(a) loans. Because Pet Supplies Plus is on the SBA Franchise Directory, an SBA 7(a) loan can finance the build-out, fixtures, equipment, opening inventory, franchise fee and working capital for a new store, or the purchase of an existing store, in a single loan. The SBA 7(a) program maximum is currently $5 million, though program rules can change.
SBA 504 loans. Most stores are in leased retail space, so SBA 504 loans are relevant mainly when an owner buys the building or a retail condominium where the store operates. The 504 program finances owner-occupied real estate and long-lived equipment.
Conventional term loans. Multi-unit operators with strong balance sheets may use a conventional business loan for new stores or acquisitions, particularly when they can offer more collateral or a larger cash contribution.
Equipment financing. Racking and shelving, freezer and cooler cases, aquarium systems, grooming tubs and tables, dryers, self-wash stations and POS systems can be financed separately from the build-out. See our retail equipment financing and leasing page.
Working capital and lines of credit. A line of credit can fund inventory replenishment, seasonal stocking, payroll during the ramp-up and promotional events. Pet stores also need capital to adjust inventory as product mix changes. Learn about our retail working capital and lines of credit.
Seller financing on resales. When buying an existing store, the seller may carry part of the price. Any seller note must be acceptable to the senior lender and is typically subordinate to it, and SBA program rules may limit how it is structured or counted toward the buyer’s equity.
SBA Loans for Pet Supplies Plus Franchisees
The SBA Franchise Directory lists brands whose franchise agreements have been reviewed for SBA eligibility. SBA lenders generally require a brand to be listed before making an SBA-guaranteed loan to one of its franchisees. A listing does not approve any borrower; it clears the franchise relationship so the lender can focus on credit, collateral and cash flow.
Pet Supplies Plus’s directory listing. Pet Supplies Plus is listed on the SBA Franchise Directory under code S1293, and the listing carries no additional notes. In plain English, the SBA has reviewed the franchise documents without attaching special conditions, so a Pet Supplies Plus franchise loan request can move through a lender’s normal SBA process.
Why SBA financing fits pet retail. A large share of a pet store’s investment is inventory, leasehold improvements and soft costs that carry limited collateral value. SBA 7(a) lending is designed to finance these costs for qualified borrowers when cash flow supports the loan.
SBA application tips. Gather the FDD and franchise agreement, a lease or letter of intent with the landlord’s tenant improvement allowance, contractor bids, an opening inventory plan, three years of personal tax returns, a personal financial statement and a business plan with monthly projections. Our SBA loan calculator can help with early payment estimates, which are for planning only and are not an offer or approval.
How Lenders Evaluate a Pet Supplies Plus Deal
Personal credit and financial history. Lenders review credit, tax returns and a personal financial statement, and owners with a significant stake typically provide personal guarantees.
Net worth and liquidity. The franchisor’s $600,000 net worth and $300,000 liquidity thresholds are a starting point. Lenders look at how much liquidity remains after the equity injection and pre-opening costs.
Industry and management experience. Pet industry experience is not required by the franchisor, but retail, inventory or people-management experience strengthens a loan request. A semi-absentee owner should show who will manage the store day to day.
Business plan and projections. Projections should cover product sales, grooming and self-wash revenue, gross margin by category, inventory turns, the 2% to 3% royalty step-up, rent and payroll, plus a realistic ramp-up period. The franchisor’s trade-area approach to territories gives you population and household data to support your assumptions.
The FDD and franchise agreement. Lenders review the term, renewal rights, transfer conditions and default provisions. The 2025 FDD includes financial performance representations in Item 19, which a lender may compare with your projections.
Site and lease. The lease should run at least as long as the loan term, with renewal options. Lenders consider the anchor tenant, co-tenancy clauses, rent as a share of projected sales and the landlord’s improvement allowance.
Historical financials for resales. For an existing store, expect to provide several years of profit and loss statements, sales by category, inventory reports and tax returns. Lenders often review inventory for slow-moving or expired product before closing.
Inventory, Grooming and Store Equipment
A Pet Supplies Plus store combines retail merchandising with services, and each part has its own financing considerations.
Inventory. Opening inventory is a large, fast-turning asset. Lenders typically finance it as part of the initial loan, and ongoing purchases are funded from cash flow or a line of credit. Good purchasing discipline protects margins and keeps working capital from being tied up in slow sellers.
Fixtures and racking. Steel shelving, gondolas, endcaps and pallet racking hold heavy items such as bags of food and litter. The franchisor’s set-up crew helps build racking during opening.
Refrigeration and aquatics. Freezer and cooler cases for fresh and frozen pet food, and aquarium systems for fish, carry ongoing maintenance and energy costs.
Grooming and self-wash. Grooming tables, tubs, dryers and self-serve wash stations require plumbing, drainage and ventilation. These services generate revenue without product cost and help bring customers back regularly.
Multi-Unit Growth and Development
Many Pet Supplies Plus owners grow beyond one store, and the franchisor highlights multi-unit franchisees who have built portfolios over time.
Financing additional stores. After the first store has a track record, lenders can underwrite its cash flow along with the projections for the next store. Owners may finance each new store separately or combine several into one loan as the portfolio grows.
Centralized operations. Multi-unit owners can share management, purchasing and inventory practices across stores. Lenders will want consolidated financial statements and a clear management structure.
Capital planning. Each new store requires its own equity, inventory and working capital. Keep reserves so that a slower ramp-up at one store does not strain the group.
Real-World Scenarios
A first-time owner opening a new store. A former corporate manager who meets the franchisor’s thresholds signs a lease in a grocery-anchored center with a strong tenant improvement allowance. An SBA 7(a) loan covers the build-out, fixtures, opening inventory and working capital, and she hires an experienced store manager.
A veteran using the fee discount. A veteran receives the 20% discount on the initial franchise fee and pairs it with an SBA 7(a) loan for the rest of the project, keeping more personal cash in reserve.
An existing owner adding a second store. An owner with an established first store opens a second location in a nearby trade area. The lender underwrites both stores’ cash flow and finances the new store’s racking and freezers separately with equipment financing.
A buyer acquiring an existing store. A buyer purchases a store from a retiring franchisee. The lender reviews several years of financials, sales by category and the inventory count, and the seller carries a small subordinated note.
Common Mistakes to Avoid
- Underestimating opening inventory and the working capital needed to replenish it
- Projecting the 2% royalty beyond the first 12 months instead of stepping up to 3%
- Leaving out advertising and technology fees disclosed in Item 6
- Signing a lease without negotiating a tenant improvement allowance
- Overlooking plumbing and drainage costs for grooming and self-wash areas
- Assuming a semi-absentee model works without a strong store manager
- Buying an existing store without checking inventory for slow-moving product
For more pitfalls that apply to stores of all kinds, read the retail store loan mistakes to avoid.
Next Steps to Finance Your Pet Supplies Plus Franchise
Step 1: Confirm you meet the requirements. Verify at least $600,000 of net worth and $300,000 of liquid assets, and gather statements that document them.
Step 2: Start the discovery process. Talk with a franchise development director, submit the application and receive the FDD.
Step 3: Review the FDD with advisors. Study Items 5, 6, 7, 10, 17 and 19 and the franchise agreement with a franchise attorney and accountant.
Step 4: Talk with a financing specialist. Learn how SBA and conventional lenders will size a loan for your target trade area before you commit to a site.
Step 5: Secure a site. Work with the franchisor’s real estate team to choose a site, negotiate the tenant improvement allowance and get contractor bids.
Step 6: Apply for financing. Submit a complete package with projections, the lease, budget, inventory plan and personal financial documents.
Step 7: Close and open. Coordinate construction, fixture installation, inventory delivery and training so the store opens on schedule.
Pet Supplies Plus Franchise Loan FAQs
How much does it cost to open a Pet Supplies Plus?
According to the franchisor, the all-in cost typically ranges from $536,520 to $1,965,005, including inventory, equipment, construction, signs and pre-opening expenses.
What is the Pet Supplies Plus franchise fee?
The initial franchise fee is $49,900 for a single unit. Qualified veterans receive a 20% discount on their first franchise fee.
What royalty does Pet Supplies Plus charge?
The royalty is 2% of monthly sales for the first 12 months, then 3% of monthly sales for the life of the franchise agreement.
How much net worth and liquid capital do I need?
The franchisor looks for $600,000 or more of net worth and $300,000 or more of liquid assets.
Is Pet Supplies Plus approved for SBA loans?
Yes. Pet Supplies Plus is listed on the SBA Franchise Directory under code S1293 with no additional notes. Each loan is still subject to lender approval.
Does Pet Supplies Plus offer financing?
No. The franchisor states that it offers no direct or indirect financing and does not guarantee franchisees’ notes, leases or other obligations. Buyers arrange their own financing.
Can I finance the opening inventory?
Yes. Opening inventory is often included in an SBA 7(a) loan for a new store, and a line of credit can help fund replenishment after opening.
Can I finance equipment separately?
Yes. Racking, freezers, aquariums, grooming equipment and self-wash stations can often be financed separately from the build-out.
Do I need pet industry experience?
No. The franchisor says prior pet industry or franchising experience is not required. Lenders do value retail and management experience.
How long does it take to open a store?
The franchisor says a store typically opens about 120 days after lease execution, and the full process from site identification to opening takes 5 to 12 months.
Can I buy an existing Pet Supplies Plus store?
Yes, subject to franchisor approval. Lenders can underwrite an acquisition using the store’s historical financials and inventory records.
Can I own multiple stores?
Yes. Many franchisees own several stores, and lenders can use the cash flow from existing stores to support financing for new ones.
Does the FDD include financial performance information?
Yes. The 2025 FDD includes financial performance representations in Item 19. Review them with your accountant and build projections from your own trade area.
Final Thoughts
A Pet Supplies Plus franchise loan finances a retail business where inventory, site and working capital matter as much as the build-out. Buyers who meet the franchisor’s thresholds, negotiate a strong lease, plan for inventory replenishment and use the brand’s SBA listing wisely put themselves in a good position to open and grow.
US Professional Funding helps franchise owners and buyers finance new stores, acquisitions, equipment, inventory and working capital. Learn more about our franchise financing and retail store financing solutions.
