Not sure if FairyTail Pet Care is right for you?

Take our 1-minute franchise matching quiz to get in touch with a Franchise Advisor that can match you with your perfect franchise based on your goals, experience, and investment range.

Take the Quiz & Get Matched
FairyTail Pet Care Logo

FairyTail Pet Care

FairyTail Franchising, LLC
https://www.fairytailpetcare.com
1-813-701-9663
3602 N Arlington Avenue, Tampa, Florida 33603

How much does FairyTail Pet Care cost?

Initial Investment Range

$23,260 to $75,000

Franchise Fee

$14,080 to $46,500

FairyTail Pet Care provides professional pet care, handling, and companion services for pet owners during and at their wedding and other special events.

Enjoy our partial free risk analysis below

Unlock the full risk analysis to access 9 more categories covering 100+ risks.

FairyTail Pet Care February 25, 2025 FDD Risk Analysis

Free FDD Library AI Analysis Date: August 22, 2025

DISCLAIMER: Not Legal Advice - For Informational Purposes Only. Consult With Qualified Franchise Professionals.

1

Franchisor Stability Risks

Start Here
Total: 10
3
2
5

Disclosure of Franchisor's Financial Instability

High Risk

Explanation

FairyTail Franchising, LLC (FairyTail LLC) is a new company with a limited financial history, reporting very low net income. The FDD's 'Special Risks' section explicitly states the company's financial condition “calls into question the franchisor's financial ability to provide services and support to you.” A heavy reliance on initial franchise fees for revenue, rather than ongoing royalties, may also suggest a risk to its long-term ability to support franchisees.

Potential Mitigations

  • Your accountant must conduct a thorough review of the audited financial statements in Exhibit D, paying close attention to cash flow and revenue sources.
  • Discuss the franchisor's capitalization and plans for funding ongoing support with your financial advisor, especially given the explicit risk disclosure.
  • In legal counsel's review, it would be prudent to understand any financial assurance mechanisms like state-required bonds or escrow, if applicable.
Citations: Item 1, Item 4 ('Special Risks' section), Item 21, Exhibit D

High Franchisee Turnover

High Risk

Explanation

The information in Item 20 indicates a high rate of franchisee turnover for a young system. In 2023, one of the four operating franchisees terminated its business, representing a 25% annual turnover rate. Item 19 confirms this was the Orlando, FL outlet, which ceased operations after approximately 14 months. This early failure and high turnover rate could be an indicator of potential systemic challenges, issues with profitability, or franchisee dissatisfaction.

Potential Mitigations

  • It is critical to contact current and former franchisees listed in Item 20 to discuss their experiences and the reasons for any departures.
  • Analyzing the turnover data with your accountant is important to calculate the actual churn rate and understand its implications for system stability.
  • Your attorney can help you formulate specific questions for the franchisor regarding the circumstances of the terminated Orlando franchise.
Citations: Item 19, Item 20

Rapid System Growth

Low Risk

Explanation

The risk of excessively rapid growth straining franchisor resources was not identified. In fact, Item 20 data shows a net decrease in total outlets in 2023. While slow growth in a new system is also a consideration, the specific risk of being unable to support rapid expansion does not appear to be a current issue. A prospective franchisee should still monitor the franchisor's capacity to provide support as the system develops.

Potential Mitigations

  • In discussions with the franchisor, it would be beneficial to understand their strategic growth plans and how they intend to scale support systems.
  • Talking with current franchisees about the quality and responsiveness of franchisor support is a valuable due diligence step to take with your business advisor.
  • An accountant can help you review the franchisor's financial statements to assess if they are investing adequately in support infrastructure for future growth.
Citations: Item 20, Item 21

New/Unproven Franchise System

High Risk

Explanation

FairyTail LLC is an unproven franchise system, a risk highlighted in its own FDD. Established in late 2021 and beginning to franchise in 2022, the company has a very short operating history, a small number of franchisees, and has already seen one franchisee fail. This lack of a long-term track record increases the risk associated with the business model's viability, the effectiveness of its support systems, and its overall stability.

Potential Mitigations

  • Extensive due diligence on the backgrounds of the management team in both the pet care industry and franchising is essential and should be reviewed with your business advisor.
  • Speaking with the earliest franchisees listed in Item 20 can provide critical insight into the system's development and challenges.
  • Given the higher risk, having your attorney attempt to negotiate more franchisee-favorable terms to offset the uncertainty is advisable.
Citations: Item 1, Item 2, Item 20, Item 21

Possible Fad Business

Medium Risk

Explanation

The business model, providing pet care services for weddings and special events, operates in a niche market. While potentially innovative, you should consider if there is sustained, long-term consumer demand for such specialized services beyond current trends. The success of the business could be highly dependent on the strength of the wedding industry and discretionary consumer spending, which can be cyclical. The risk is whether this is a sustainable business or a potential fad.

Potential Mitigations

  • A business advisor can help you conduct independent market research to assess the long-term demand for high-end, event-specific pet services in your area.
  • Evaluating the business's resilience to economic downturns when discretionary spending may be cut is a critical task for your financial advisor.
  • Question the franchisor about their plans for service innovation and adaptation to stay relevant beyond the current market.
Citations: Item 1

Inexperienced Management

Medium Risk

Explanation

The principal managers, Kelly Nova and Ilana Karcinski, have operated an affiliated FairyTail Pet Care business since 2016, showing industry experience. However, their experience in managing a franchise system is limited, as the franchisor entity was formed in late 2021. While Barbara Corcoran is listed as an owner, her role is described as offering advice without decision-making abilities. Managing a franchise system presents different challenges than running a single business, which could pose a risk.

Potential Mitigations

  • A thorough vetting of the management team's specific experience in supporting a network of franchisees should be conducted with your business advisor.
  • Inquiring with existing franchisees about the quality of system-wide support and management's effectiveness is a crucial due diligence step.
  • Clarifying with the franchisor what resources or outside consultants they use to compensate for their limited history as a franchisor is recommended.
Citations: Item 2

Private Equity Ownership

Low Risk

Explanation

This FDD does not disclose ownership by a private equity firm. The owners appear to be the managers and an investment entity associated with a public figure. Therefore, the specific risks associated with a private equity model, such as a focus on short-term returns over system health, do not seem applicable here. However, any future sale of the company could introduce this risk.

Potential Mitigations

  • Your attorney can help you understand the implications of the 'Assignment' clause in the franchise agreement, which governs the franchisor's right to sell the system.
  • A business advisor can assist in researching the existing owners' track record and business philosophy.
  • Asking current franchisees about the ownership's involvement and long-term vision for the brand can provide valuable context.
Citations: Item 1

Non-Disclosure of Parent Company

Low Risk

Explanation

This specific risk was not identified in the FDD package. The franchisor entity, FairyTail Franchising, LLC, is presented as the primary entity, and it does not appear to be a thinly capitalized subsidiary of a larger, undisclosed parent company. A parent company guarantee is not mentioned. Full disclosure of parent companies is important for assessing the true financial backing and stability of a franchise system.

Potential Mitigations

  • Your attorney should always verify the corporate structure to confirm there are no undisclosed parent companies or affiliates that might influence the franchisor.
  • When a franchisor is a subsidiary, an accountant's review of the parent company's financial statements is crucial for a complete risk assessment.
  • Ensuring any guarantees from a parent company are legally binding and attached to the FDD is a key step for your attorney to take.
Citations: Not applicable

Predecessor History Issues

Low Risk

Explanation

According to Item 1 of the FDD, FairyTail LLC has no predecessors. It is a newly formed entity that began franchising in 2022. Therefore, the risks associated with an incomplete or negative history of a predecessor entity are not applicable in this case. You are evaluating a new system without a prior corporate history to analyze.

Potential Mitigations

  • Your attorney should always confirm the accuracy of the 'no predecessor' statement through independent corporate records searches if any doubt exists.
  • Understanding that a lack of predecessor history means the system itself is new and unproven is a key consideration for your business advisor.
  • In any franchise review, it's important for an accountant to analyze the history of both the franchisor and any predecessors for a complete picture of system stability.
Citations: Item 1

Pattern of Litigation

Low Risk

Explanation

Item 3 of the FDD states, "No litigation is required to be disclosed in this Item." For a very new franchisor, the absence of litigation is not unusual but also not a guarantee of future stability. A pattern of litigation, especially claims of fraud or breach of contract from franchisees, is a major red flag in any FDD. You should remain vigilant as the system matures.

Potential Mitigations

  • Your attorney can conduct independent searches for litigation involving the franchisor or its principals that may not have met the threshold for disclosure.
  • Speaking with current and former franchisees is a valuable way to learn about any disputes or disagreements that did not result in formal litigation.
  • A business advisor can help you assess the franchisor's dispute resolution culture based on franchisee feedback.
Citations: Item 3
2

Disclosure & Representation Risks

Total: 15
5
4
6

Example Risk: Franchisee Financial Obligations

Blue Risk

Explanation

This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.

Potential Mitigations

  • Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
  • Conduct regular risk assessments
  • Implement monitoring and reporting systems

Unlock Full Risk Analysis

Purchase the complete risk review to see all 102 risks across all 10 categories.

3

Financial & Fee Risks

Total: 10
3
6
1

Example Risk: Franchisee Financial Obligations

Blue Risk

Explanation

This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.

Potential Mitigations

  • Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
  • Conduct regular risk assessments
  • Implement monitoring and reporting systems

Unlock Full Risk Analysis

Purchase the complete risk review to see all 102 risks across all 10 categories.

4

Legal & Contract Risks

Total: 16
5
7
4

Example Risk: Franchisee Financial Obligations

Blue Risk

Explanation

This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.

Potential Mitigations

  • Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
  • Conduct regular risk assessments
  • Implement monitoring and reporting systems

Unlock Full Risk Analysis

Purchase the complete risk review to see all 102 risks across all 10 categories.

5

Territory & Competition Risks

Total: 5
3
1
1

Example Risk: Franchisee Financial Obligations

Blue Risk

Explanation

This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.

Potential Mitigations

  • Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
  • Conduct regular risk assessments
  • Implement monitoring and reporting systems

Unlock Full Risk Analysis

Purchase the complete risk review to see all 102 risks across all 10 categories.

6

Regulatory & Compliance Risks

Total: 10
4
3
3

Example Risk: Franchisee Financial Obligations

Blue Risk

Explanation

This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.

Potential Mitigations

  • Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
  • Conduct regular risk assessments
  • Implement monitoring and reporting systems

Unlock Full Risk Analysis

Purchase the complete risk review to see all 102 risks across all 10 categories.

7

Franchisor Support Risks

Total: 4
2
2
0

Example Risk: Franchisee Financial Obligations

Blue Risk

Explanation

This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.

Potential Mitigations

  • Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
  • Conduct regular risk assessments
  • Implement monitoring and reporting systems

Unlock Full Risk Analysis

Purchase the complete risk review to see all 102 risks across all 10 categories.

8

Operational Control Risks

Total: 12
3
6
3

Example Risk: Franchisee Financial Obligations

Blue Risk

Explanation

This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.

Potential Mitigations

  • Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
  • Conduct regular risk assessments
  • Implement monitoring and reporting systems

Unlock Full Risk Analysis

Purchase the complete risk review to see all 102 risks across all 10 categories.

9

Term & Exit Risks

Total: 18
8
6
4

Example Risk: Franchisee Financial Obligations

Blue Risk

Explanation

This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.

Potential Mitigations

  • Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
  • Conduct regular risk assessments
  • Implement monitoring and reporting systems

Unlock Full Risk Analysis

Purchase the complete risk review to see all 102 risks across all 10 categories.

10

Miscellaneous Risks

Total: 2
1
1
0

Example Risk: Franchisee Financial Obligations

Blue Risk

Explanation

This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.

Potential Mitigations

  • Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
  • Conduct regular risk assessments
  • Implement monitoring and reporting systems

Unlock Full Risk Analysis

Purchase the complete risk review to see all 102 risks across all 10 categories.