The U.S. pet care industry is booming—projected to reach over $150 billion by the end of 2025. As pet ownership continues to rise (with over 66% of U.S. households owning at least one pet), the demand for premium pet services like boarding, daycare, and grooming has exploded.
Entrepreneurs looking for a recession-resistant, emotionally rewarding, and scalable business are increasingly turning to pet boarding and daycare franchises. But how much does it actually cost to open one?
In this detailed 3,000-word blog, we’ll explore:
- 2025 pet care industry trends
- Types of pet boarding and daycare franchises
- Full cost breakdown of opening a franchise
- Top franchise brands in 2025
- Revenue, profit margins, and ROI
- Franchisee qualifications
- Financing and support options
- Risks and legal considerations
- Brand comparison chart
- Final thoughts for investors
1. U.S. Pet Care Industry Trends (2025)
- Market Size: $150B+ (projected 2025)
- Annual Growth: 6.9% CAGR
- Primary Services:
- Overnight boarding (kennel or suite-style)
- Doggy daycare (group play, activities)
- Grooming and spa services
- Training and enrichment classes
- Key Drivers:
- Humanization of pets (“fur babies”)
- Increase in dual-income households
- Growth in travel and work-related pet care needs
- Desire for safe, clean, and enriching environments for pets
2. Types of Pet Boarding & Daycare Franchise Models
- Kennel-Style Boarding Facilities: Traditional individual kennels, sometimes basic amenities.
- Luxury Pet Resorts: Suite-style rooms, webcams, TVs, elevated grooming and spa services.
- Daycare-Only Centers: Designed for daily drop-off, no overnight boarding.
- Multi-Service Facilities: Combine daycare, boarding, grooming, and training.
- Mobile Daycare & Pickup: Shuttle services or pop-up daycare solutions.
3. Startup Cost Breakdown
| Expense Category | Estimated Range |
|---|---|
| Franchise Fee | $40,000 – $60,000 |
| Leasehold/Buildout | $200,000 – $600,000 |
| Facility Design & Equipment | $75,000 – $200,000 |
| Insurance & Permits | $10,000 – $30,000 |
| Software & Technology | $5,000 – $15,000 |
| Staffing & Training | $25,000 – $75,000 |
| Initial Inventory (food, bedding, supplies) | $5,000 – $20,000 |
| Marketing & Grand Opening | $10,000 – $30,000 |
| Working Capital | $50,000 – $150,000 |
| Total Estimate | $400,000 – $1.2M+ |
4. Top Pet Boarding & Daycare Franchises in 2025
1. Camp Bow Wow
- Startup Cost: $500K – $850K
- Franchise Fee: $50,000
- Royalty: 7% + 2% brand fund
- USP: Indoor/outdoor play yards, enrichment programs, live cams
2. Dogtopia
- Startup Cost: $530K – $1.3M
- Franchise Fee: $49,500
- Royalty: 7% + 2% marketing
- USP: Structured daycare activities, spa & boarding, wellness programs
3. PetSuites
- Startup Cost: $850K – $1.5M
- Franchise Fee: ~$60,000
- Royalty: Varies
- USP: Suite-style boarding, upscale amenities, large-scale facilities
4. Fetch! Pet Care (Mobile Model)
- Startup Cost: $75K – $125K
- Franchise Fee: $39,000
- Royalty: 7% + 1% tech
- USP: In-home boarding, walking, and mobile pet services
5. Hounds Town USA
- Startup Cost: $457K – $750K
- Franchise Fee: $49,500
- Royalty: 6% + 2% marketing
- USP: Pack-based daycare, low overhead model, multiple revenue streams
5. Revenue & Profit Potential
| Brand | Avg Annual Revenue | Net Margin | Breakeven Period |
| Camp Bow Wow | $900K – $1.3M | 20–25% | 24–36 months |
| Dogtopia | $1M – $1.5M | 22–28% | 24–36 months |
| PetSuites | $1.2M – $2M | 18–24% | 30–48 months |
| Fetch! Pet Care | $250K – $500K | 25–30% | 18–24 months |
| Hounds Town USA | $650K – $1.1M | 20–25% | 24–30 months |
6. Franchisee Qualifications
- Net Worth: $400K – $1.5M
- Liquid Capital: $100K – $500K
- Pet Industry Experience: Not required, but a plus
- Ideal Traits:
- Customer service mindset
- Passion for animals
- Strong team leadership and operational focus
7. Financing Options
- SBA 7(a) or 504 Loans: Ideal for real estate-heavy or large facility projects
- Franchisor Partnerships: Some brands assist with preferred lenders
- Equipment Leasing: Grooming, security, HVAC systems
- ROBS Plans: Use retirement savings penalty-free
- Veteran Discounts: Up to 20% off franchise fees at select brands
8. Risks & Legal Considerations
Risks:
- Staff turnover (especially groomers and handlers)
- Pet injury or illness liability
- Seasonal dips (holidays = peak, summer = strong; fall = slow)
- Zoning, health code, and noise ordinance issues
Legal:
- Business insurance (liability, property, workers comp)
- Pet care liability waivers
- Local kennel licenses and animal care permits
- ADA considerations for public access and service animals
9. Franchise Comparison Chart
| Brand | Startup Cost | Franchise Fee | Avg Revenue | Net Margin | Break-Even |
| Camp Bow Wow | $500K–$850K | $50,000 | $1.2M | 23% | 30 mo |
| Dogtopia | $530K–$1.3M | $49,500 | $1.4M | 25% | 30 mo |
| PetSuites | $850K–$1.5M | ~$60,000 | $1.8M | 20% | 36–48 mo |
| Fetch! Pet Care | $75K–$125K | $39,000 | $400K | 27% | 18–24 mo |
| Hounds Town USA | $457K–$750K | $49,500 | $900K | 22% | 24–30 mo |
10. Final Thoughts
Opening a pet boarding or daycare franchise in 2025 offers a path into one of America’s most emotionally rewarding and economically strong industries. With the right brand, location, and local demand, pet franchise owners can enjoy a business that brings joy, financial stability, and long-term growth.
Before you invest:
- Tour existing franchise units
- Speak with 3–5 current franchisees
- Understand local pet regulations and zoning laws
- Get professional legal advice on liability and insurance
If you love pets and want a profitable business model with lasting impact, a pet daycare or boarding franchise might be your perfect next move.
