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Poop 911

Hounds Mounds, Inc.
https://www.poop911.com
1-214-395-9420
3824 Cedar Springs Rd., Ste 200, Dallas TX 75219
FDD Version:

How much does Poop 911 cost?

Initial Investment Range

$3,620 to $25,970

Franchise Fee

$0

We offer Poop 911 franchises, which will operate a Poop 911 Pet waste removal service business.

Enjoy our partial free risk analysis below

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Poop 911 May 21, 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
2
2
6

Disclosure of Franchisor's Financial Instability

High Risk

Explanation

Hounds Mounds, Inc. (Poop 911) financials show significant signs of instability. The FDD includes a specific risk warning about its financial condition. Audited statements reveal a dangerously low current ratio (current assets vs. current liabilities), indicating a potential inability to meet short-term obligations. The company also made cash distributions to owners exceeding its net income in 2024, further weakening its financial position. These factors question its ability to support franchisees long-term.

Potential Mitigations

  • Your accountant must conduct a thorough analysis of the audited financial statements, including all footnotes and the auditor's report on the restatement of prior financials.
  • It is critical to discuss the company's poor liquidity and its history of distributing more cash than it earns with your financial advisor.
  • Engage your franchise attorney to discuss the implications of the franchisor's explicit financial condition risk warning.
Citations: Item 21, Exhibit B (Financial Statements, Auditor's Report, Balance Sheets, Statement of Changes in Stockholder's Equity), Special Risks to Consider About This Franchise

High Franchisee Turnover

Medium Risk

Explanation

The FDD's Item 20 data shows a notable number of franchise transfers and cessations over the past three years. In 2023, there were 9 'negative' exits (terminations, reacquisitions, cessations) from a starting base of 109 franchises (an 8.3% turnover rate). While not critically high, this trend, combined with a significant number of transfers which can sometimes mask distressed sales, suggests you should investigate the reasons for franchisee departures.

Potential Mitigations

  • Speaking with a significant number of former franchisees from the list in Exhibit E is essential to understand their reasons for leaving the system.
  • A business advisor can help you analyze the turnover and transfer data in Item 20 to identify any concerning trends.
  • Your attorney should help you formulate specific questions for the franchisor regarding the circumstances of the terminations and cessations.
Citations: Item 20 (Tables 1, 2, 3)

Rapid System Growth

Medium Risk

Explanation

The franchise system has experienced very rapid growth, expanding from 109 to 254 franchised outlets in just two years. While growth can be positive, such a rapid expansion, when combined with the franchisor's weak financial position noted in Item 21, creates a risk that its support infrastructure may not keep pace. This could strain the franchisor's ability to provide adequate training, back-office services, and operational guidance to all franchisees.

Potential Mitigations

  • A discussion with your business advisor is important to assess whether the franchisor's support systems appear scalable enough for this rapid growth.
  • Inquiring with both new and established franchisees about the current quality and responsiveness of franchisor support is a crucial due diligence step.
  • Your accountant should evaluate whether the franchisor's financials reflect sufficient reinvestment into support infrastructure.
Citations: Item 20, Item 21

New/Unproven Franchise System

Low Risk

Explanation

The risk of an unproven franchise system is not a primary concern. Poop 911 was incorporated in 2005 and has been franchising in its current format since 2012. Item 20 shows a system with over 250 units. While there are other risks, the system itself is established and not new or unproven.

Potential Mitigations

  • It is still wise to have a business advisor help you research the company’s history and its standing within the pet services industry.
  • Your accountant can review the multi-year financial data to assess the company's historical performance and stability.
  • Engaging an attorney to review the full disclosure document provides a professional check on the company's background and legal structure.
Citations: Item 1, Item 2, Item 20, Item 21

Possible Fad Business

Low Risk

Explanation

This specific risk was not identified in the FDD Package. A fad business is one tied to a fleeting trend, creating risk when consumer interest wanes. The pet services industry, particularly waste removal, generally represents a response to a consistent and ongoing consumer need rather than a short-term trend, suggesting a lower risk of the business being a fad.

Potential Mitigations

  • Consulting with a business advisor to research the long-term market trends and demand for pet-related services in your specific area is recommended.
  • An accountant can help you model the financial viability of the business under various economic conditions.
  • An attorney can review the franchise agreement to ensure you have some flexibility if local market conditions change.
Citations: Item 1, Item 11

Inexperienced Management

Low Risk

Explanation

This specific risk was not identified in the FDD Package. Item 2 indicates that the key executives, including the President and Chief Operating Officer, have been with the company for many years, since 2005 and 2019 respectively. Their experience is within this specific industry and with this franchise system, which mitigates the risk of inexperienced management.

Potential Mitigations

  • It is still valuable to interview current franchisees about their direct experiences with the management team's competence and support.
  • Your business advisor can help you assess the leadership team's background and its relevance to the challenges of managing a large franchise network.
  • Asking your attorney to review Item 2 for any concerning gaps or frequent changes in key management roles is a prudent step.
Citations: Item 2

Private Equity Ownership

Low Risk

Explanation

This risk was not identified in the FDD Package. Item 1 does not disclose ownership by a private equity firm. The company appears to be privately held by its founder. Therefore, the specific risks associated with PE ownership, such as a focus on short-term returns over franchisee health, do not appear to be present.

Potential Mitigations

  • As a general practice, it's wise to have your attorney confirm the ownership structure of the franchisor.
  • A discussion with your business advisor about the pros and cons of different franchisor ownership structures can be educational.
  • Your accountant can analyze the financial statements for signs of financial strategies often associated with different types of ownership.
Citations: Item 1, Item 21

Non-Disclosure of Parent Company

Low Risk

Explanation

This risk was not identified in the FDD Package. Item 1 does not disclose any parent companies. Poop 911 appears to be a standalone entity, and its financial statements are provided. There are no mentions of a parent guarantee or reliance on a parent company for operations, so the risks associated with non-disclosure of a parent are not applicable here.

Potential Mitigations

  • Your attorney can conduct a corporate search to verify the franchisor's structure and confirm the absence of a parent entity.
  • It is a good practice to ask your accountant to review the provided financials to ensure they stand on their own without undisclosed support.
  • A business advisor can help you understand the implications of a standalone franchisor versus one with a corporate parent.
Citations: Item 1, Item 21, Item 22

Predecessor History Issues

Low Risk

Explanation

This specific risk was not identified in the FDD Package. The franchisor states in Item 1 that it has no predecessors. Therefore, risks related to a hidden or problematic history from a prior entity that owned the system do not apply.

Potential Mitigations

  • It is still a worthwhile step for your attorney to verify the company's history and confirm the accuracy of the 'no predecessors' statement.
  • A business advisor can help you research the brand's origins and history in the marketplace.
  • Even without predecessors, an accountant's review of the franchisor's multi-year financial history is crucial for assessing stability.
Citations: Item 1, Item 3, Item 4

Pattern of Litigation

High Risk

Explanation

Item 3 reveals a concerning pattern of past regulatory actions and litigation. Poop 911 previously received Desist and Refrain and Consent Orders from California and Washington for selling unregistered franchises. Additionally, in an arbitration initiated by the franchisor, the arbitrator found a key contract term (the non-compete) to be overly broad and unenforceable. This history suggests significant past compliance failures and potential weaknesses in its legal agreements, creating risk for you.

Potential Mitigations

  • A thorough review of all litigation details in Item 3 with your franchise attorney is critical to understand these past issues.
  • It's advisable to ask your attorney about the implications of the franchisor's past regulatory violations and the unenforceable contract term.
  • Discuss with a business advisor how this history might reflect on the franchisor's operational and legal sophistication.
Citations: Item 3
2

Disclosure & Representation Risks

Total: 15
3
1
11

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

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3

Financial & Fee Risks

Total: 10
1
5
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.

4

Legal & Contract Risks

Total: 16
6
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.

5

Territory & Competition Risks

Total: 5
0
3
2

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
3
2
5

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
1
2
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.

8

Operational Control Risks

Total: 12
1
6
5

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
5
8
5

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.