Rating Scale:

***** (5-Star): "Excellent Opportunity"
**** (4-Star): "Good Opportunity"
*** (3-Star): "Average Opportunity"
** (2-Star): "Below Average Opportunity"
* (1-Star): "Poor Opportunity"

Company:

PetPeople Franchise Systems, Inc.

Centercourt Rating:

***** (5-Star)

Business Type:

Franchise

Description:

Pet Supply Reatil Store

Mailing Address:

PetPeople Franchise Systems, Inc.
722 Genevieve Street, Suite E
Solana Beach, CA 92075

Telephone:

1-800-655-6595

Fax:

(858) 481-3337

E-Mail:

PetPeople@aol.com

Web Site:

www.petpeopleusa.com

Direct Link Topics:

Program Summary
Program History
Franchise Components
Rating Summary

Program Summary:

PetPeople caters to the needs pet lovers. Our stores are approximately 3,000 square feet and are located in supermarket anchored shopping centers, providing the convenience and service our customers have come to expect.

PetPeople stores sell only pet foods and supplies. Focusing on pet products, allows our sales associates to take the time to assist our customers with most of their pet problems.

Simply stated, our strategy is to target dog and cat owners, and to provide them with all of their pet needs for the life of their pets. We believe that each new customer that we attract has the potential to become a PetPeople customer for the next 15 to 20 years.

Program History:

San Diego, California based PetPeople was started in 1990 by Gregg Morris, a 15 year retail veteran. Mr. Morris, a pet owner his entire life, through observation and industry analysis, developed a successful store format that is now proven industry performer.

Prior to starting PetPeople, Mr. Morris was a franchisee of a successful fast food concept. The experience of being a franchisee influenced his decision to take the time necessary to prove and refine the PetPeople business concept before offering franchises for sale.

PetPeople currently operates 10 company-owned stores, with 7 in San Diego, California, and 3 in Columbus, Ohio.

In 1998, for the first time the company is offering franchise opportunities to the general public.

Franchise Components:

PetPeople franchise owners invest between $141,000 and $212,000 to open and stock their stores. This investment includes a $25,000 franchise fee. The investment range depends primarily on the size of store opened. Typically a 3,000 square foot store can be opened for $141,000 or less.

PetPeople franchisees pay an ongoing royalty of 4% of gross sales in exchange for the continuous use of the PetPeople name, logo, trademarks, private label products, plan-o-grams, and access to the PetPeople corporate intranet.

PetPeople franchisees benefit from chain-wide buying power. PetPeople has negotiated national wholesale pricing with most of the major pet supply distributors and manufactures throughout the United States. This "buying advantage" is a very real benefit of being a PetPeople franchisee.

Franchisees receive help with site selection, store layout and design, merchandise presentation, and grand opening marketing. Each franchisee is required to attend our 15 day intensive training program. Over this training period, franchisees are taught how to effectively and profitably manage their businesses.

Rating Summary:

Pet People's Franchise Program has been rated as a 5-Star (*****) franchise offering by InterAct Concept Development Corp., a franchise and business opportunity management and marketing firm with 12 years of experience in the franchising industry.

The factors that led InterAct to assign its highest franchise program rating include high scores involving the following components:

1. Retail business requiring a reasonable initial investment which includes the franchise fee.

2. Specific target market to dog and cat owners to provide all of their pet needs for the life of their pets.

3. Wholesale pricing from nationwide distributors and manufacturers offers chain-wide buying power.

4. Proven track record and a reputation based on successful company owned locations.

5. Required 15 day intensive training program teaches effective and profitable management to franchisees.