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Splash and Dash For Dogs
How much does Splash and Dash For Dogs cost?
Initial Investment Range
$296,880 to $748,420
Franchise Fee
$140,880 to $442,570
As a Splash and Dash franchisee, you will sell pet products, pet grooming and bathing, and related services.
Enjoy our partial free risk analysis below
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Splash and Dash For Dogs March 18, 2025 FDD Risk Analysis
Free FDD Library AI Analysis Date: July 16, 2025
DISCLAIMER: Not Legal Advice - For Informational Purposes Only. Consult With Qualified Franchise Professionals.
Franchisor Stability Risks
Start HereDisclosure of Franchisor's Financial Instability
High Risk
Explanation
SD Franchise Holdings, Inc. (SD Franchise) is a new entity (formed April 2023) that had a shareholder's deficit in its first year and only $211 in cash at the end of 2024. The FDD explicitly lists the “General Financial Condition” and “Short Operating History” as special risks. The franchisor’s financial weakness could impact its ability to support you or invest in the brand, jeopardizing your investment.
Potential Mitigations
- A franchise accountant should conduct a deep analysis of the franchisor's audited financial statements, including all footnotes and cash flow statements.
- Discuss the complex corporate structure and the new entity’s reliance on its predecessor with your attorney to understand liability.
- Ask your financial advisor to assess if the franchisor's low cash position and significant loans to related parties pose a critical risk.
High Franchisee Turnover
High Risk
Explanation
Item 20 data from 2024 shows a very high churn rate, with 3 franchisee exits (2 terminations, 1 non-renewal) from a starting base of 14, a 21% annual turnover. Additionally, the Item 19 financial performance representation explicitly excludes two units that closed in 2024. This pattern may indicate systemic problems, such as franchisee unprofitability or dissatisfaction, presenting a significant risk to your potential success within the system.
Potential Mitigations
- Your business advisor should help you calculate the precise turnover rates from Item 20 data for the past three years.
- It is critical to contact former franchisees listed in Exhibit I to understand why they left the system; your attorney can help prepare questions.
- Question the franchisor directly about the reasons for the high turnover and why closed units were excluded from the Item 19 financial data.
Rapid System Growth
Medium Risk
Explanation
The franchisor has grown quickly, adding 8 new outlets in 2024, a more than 50% increase in system size. When combined with the franchisor's limited cash reserves, this rapid expansion may strain its ability to provide adequate training, site selection assistance, and ongoing operational support to all franchisees. You could face delays or a lower quality of support as the franchisor's resources are spread thin across a rapidly growing network.
Potential Mitigations
- A discussion with your business advisor can help you assess whether the franchisor's support infrastructure seems capable of handling this growth.
- Contact a wide range of franchisees, both new and established, to gauge the current quality and responsiveness of franchisor support.
- Your accountant should review the franchisor's investment in support staff and systems relative to its growth rate.
New/Unproven Franchise System
High Risk
Explanation
The franchisor entity, SD Franchise, was formed in April 2023 and has a very limited operational history, as noted in the FDD's special risks section. It relies on a predecessor company for management and support and does not operate any of its own locations. This lack of direct operational experience and short history increases the risk of unproven systems, inadequate support, and potential instability, making it a riskier investment than a more established system.
Potential Mitigations
- With your business advisor, conduct extensive due diligence on the management team's prior experience in both the pet industry and in franchising.
- Your accountant must carefully scrutinize the financials of both the current franchisor and its predecessor entity.
- Asking an attorney to negotiate more franchisee-favorable terms may be warranted to offset the higher risk of a new system.
Possible Fad Business
Low Risk
Explanation
This risk was not identified in the FDD package. A fad business is one tied to a short-lived trend, which can threaten long-term viability after public interest fades. Your franchise agreement, however, is a long-term contract. It is important to assess whether a business concept has sustained consumer demand and is adaptable to market changes, ensuring it can remain relevant and profitable over the full term of your agreement.
Potential Mitigations
- A business advisor can help you conduct independent market research to assess the long-term demand for the services offered.
- Question the franchisor about their plans for research, development, and innovation to keep the brand relevant over the next decade.
- Evaluate the business model's resilience to economic shifts and changing consumer tastes with your financial advisor.
Inexperienced Management
Medium Risk
Explanation
The franchisor entity, SD Franchise, is new and does not operate any locations itself. It relies on a predecessor company via a management agreement. While the CEO, Dan Barton, has experience with the predecessor since 2014, the new corporate entity lacks direct franchising and operational experience. This structure could create risks related to the quality and consistency of support, training, and overall strategic direction provided to you.
Potential Mitigations
- A business advisor can help you thoroughly vet the backgrounds of the entire management team, focusing on their franchising experience.
- In your calls with existing franchisees, ask specific questions about the quality of support and training they have received since the new company took over.
- Your attorney should clarify the legal relationship and responsibilities between the new franchisor and the predecessor management company.
Private Equity Ownership
Low Risk
Explanation
This risk was not identified in the FDD package. Private equity ownership can introduce risks, as the firm's goal is often a profitable exit within a few years. This can lead to decisions that prioritize short-term gains, such as cutting franchisee support or increasing fees, over the long-term health of the brand. It is important to research the track record of any private equity firm involved with a franchise system.
Potential Mitigations
- If a franchisor is PE-owned, a business advisor can help you research the firm's history with other franchise brands.
- Reviewing the assignment clause in the franchise agreement with an attorney is crucial to understand what happens if the system is sold.
- Speaking with franchisees who have been through a PE acquisition can provide valuable insight.
Non-Disclosure of Parent Company
Low Risk
Explanation
This risk was not identified in the FDD package. Franchise law requires disclosure of parent companies. If a franchisor is a thinly capitalized subsidiary of a larger entity, the parent's financial health is material. Failure to provide parent company financials, when required, can hide financial instability or a lack of real backing for the franchisor's obligations, creating significant risk for a prospective franchisee who may be unaware of the system's true financial state.
Potential Mitigations
- An attorney can help investigate the franchisor's corporate structure to identify any undisclosed parent companies.
- If a parent company exists and guarantees the franchisor's performance, it is crucial to have an accountant review its financial statements.
- Verifying that the FDD includes all legally required financial disclosures is a key part of due diligence with your legal and financial advisors.
Predecessor History Issues
Medium Risk
Explanation
Item 1 discloses that SD Franchise is a new entity that took over from a predecessor, SD Franchise, Inc. Item 3 discloses that this predecessor had a regulatory action against it in Illinois for selling a franchise without being registered. While the current franchisor is a new legal entity, it is run by the same management and relies on the predecessor for support, meaning this history of non-compliance could be relevant to the management's approach to legal obligations.
Potential Mitigations
- Your attorney should carefully review all disclosures related to the predecessor entity in Items 1, 3, and 4.
- It is wise to ask the franchisor to explain the circumstances surrounding any negative history of its predecessor.
- Speaking with long-term franchisees who operated under the predecessor can provide valuable context on the system's history.
Pattern of Litigation
Low Risk
Explanation
This risk was not identified in the FDD package. Item 3 requires disclosure of litigation history. A pattern of lawsuits filed by franchisees against the franchisor alleging fraud, misrepresentation, or breach of contract is a major red flag, as it can signal systemic problems with the franchisor’s business practices or franchisee relationships. Similarly, a high number of lawsuits initiated by the franchisor against its franchisees might suggest an unusually aggressive or litigious culture.
Potential Mitigations
- A careful review of all cases in Item 3 with your attorney is essential to understand the nature and outcomes of the disputes.
- For any significant litigation, your attorney can assist in researching court records to get more details than what is disclosed.
- Contacting franchisees involved in past litigation, if possible, can provide invaluable firsthand accounts.
Disclosure & Representation Risks
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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Financial & Fee Risks
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.
Legal & Contract Risks
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.
Territory & Competition Risks
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.
Regulatory & Compliance Risks
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.
Franchisor Support Risks
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.
Operational Control Risks
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.
Term & Exit Risks
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.
Miscellaneous Risks
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.
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