Hounds Town could be seen as the runt on a multitude of large pet store chains, such as Livonia-based Pet Supplies Plus, which offer grooming services. The pet boarding business, however, is generally dominated by smaller independent stores. With many pet owners, the pet service industry is growing. Pet boarding and grooming in the United States has increased 5.3% over the past five years and is expected to reach $ 8 billion in 2019, according to the IBISWorld market research.
“I saw these places and places for mom and pop for sale and started looking at them and thought they could do a lot more than they did,” Mourad said.
He said the bulk of the business will be the daycare with two dedicated grooming stations. All sizes and breeds are welcome. What separates Hounds Town from the competition, he said, is animal comfort and affordability. The daily rate for animal day care will be approximately $ 20.
“The dogs of Hounds Town play most of the day,” he said. “They’re not in kennels. It’s the best thing for dogs.”
Mourad stumbled upon the franchise opportunity in an online advertisement and had talks with Gould for several months. His agreement stipulates that he will open a second location within 18 months of opening the first and a third location within 12 months of opening the second. The second will probably be in the Grosse Pointe or St. Clair Shores area. Mourad said he aims to exceed $ 800,000 in income in his first year of operation.
Hounds Town operates seven stores in the United States, including two corporate stores in New Jersey and Long Island, Gould said. Ten more are in development. Each site has approximately eight employees.
Mourad declined to say how much the insurance company has recovered, other than several million. The company offered benefit services to small businesses and had revenues of $ 9.9 million in 2015. But now Mourad is embarking on another lawsuit.
“I didn’t want to sit there and do nothing and go crazy” after selling the business, Mourad said. “I’m not that kind of person. I have a huge passion for dogs and animals in general.”