Industry Insight

Is PetWellClinic A Good Investment?

At Oakscale, we have more than 25 years of experience in franchising and we put that experience to good use by partnering with brands that our knowledge leads us to believe are poised for massive growth. We not only partnered with PetWellClinic, we also retained the rights to develop franchises ourselves in New Jersey through our investment arm, Westside Brands. We can’t wait to get our first clinic open. Here’s why we invested:

The Industry Gap

According to the 2019-2020 APPA National Pet Owners Survey, 67% of U.S. households own a pet, which equates to 84.9 millions homes. Suffice it to say that pet franchises are booming, and it’s no surprise as the pet market has reached nearly $100 Billion. 

For 2020, it's estimated that $99.0 billion will be spent on our pets in the U.S.

Estimated Breakdown:                                         

Pet Food & Treats - $38.4 billion

Supplies, Live Animals & OTC Medicine - $19.8 billion

Vet Care & Product Sales - $30.2 billion

Other Services* - $10.7 billion  

*(Other services include boarding, grooming, insurance, training, pet sitting and walking and all services outside of veterinary care)

The current marketplace for veterinary care really only gives two options: 

  1. Animal Hospitals: Offer every veterinary service imaginable by appointment. Typically take walk-ins for emergencies only.
  2. Veterinary Primary Care Practices: Offer most veterinary services, if not all of them, typically by appointment only.

For us humans, we have a 3rd option for our healthcare needs.

When seeking healthcare for minor issues, the two top concerns most people take into account are convenience and affordability. For this reason, many people use walk-in clinics for basic health services related to minor illnesses and wounds, or for monitoring and managing chronic conditions such as asthma, diabetes, or high blood pressure. Walk-in clinics don’t require an appointment, are usually conveniently located, and are open extended hours when traditional doctor’s offices aren’t. 

PetWellClinic provides this same 3rd option for dogs and cats.

We operate as a walk-in clinic for pet owners for convenient quick in-and-out services at affordable prices. 

There are more than 10,000 walk-in clinics and urgent cares for human healthcare, but how many walk-in veterinary clinics are there? There’s no data on this, because it is right at the beginning of a growth curve, led by PetWellClinic. Do some homework in your local market to see what’s out there. We bet you’ll be surprised to learn that is almost non-existent across the country. 

So why hasn’t anyone figured it out yet? 

  1. The highest revenue services for veterinary hospitals and practices are more serious issues that require radiology or surgery. Higher sales is more attractive in theory, but these services also require expensive equipment and are more labor intensive, leading to significant operating expenses. Because expenses are so high, it’s difficult for these traditional veterinary practices to offer basic services at affordable pricing, without squeezing the margins.
  1. It is challenging to figure out how to actually manage a walk-in only operation. If your vets are tied up in high revenue yielding surgeries all afternoon, how can you accommodate walk-ins? More serious medical procedures are often unpredictable in terms of the time needed to complete an operation and thus require smart scheduling based on appointments. PetWellClinic’s proprietary technology was built for managing walk-ins, not appointments, and helps streamline operations for your staff, allowing pet owners to have a quick, convenient experience.

PetWellClinic is all about convenience and affordability. By limiting services to basic preventative, wellness, and minor sick care, the timing of each service is more predictable, allowing for walk-ins to get excellent care on their own schedule, without an appointment. 

The limitation of services, in turn, reduces overhead and allows for a more affordable pricing structure.  

We see a greenfield opportunity for PetWellClinic and coupled with the following factors, we believe it will be immensely successful:

  1. Inexpensive buildout in small footprint (600 - 1200 Square Feet).
  2. Strong unit economics and YOY growth from 2019 to 2020 (as disclosed in Item 19 of the current FDD).
  3. Proprietary technology providing a barrier to entry for copy-cats.
  4. Excellent leadership team, led by founder and CEO, Dr. Sam Meisler.
  5. Hands-on training and support systems

If you’re looking for a pet franchise, we strongly recommend you do some serious due diligence on PetWellClinic. It might just be the one that has you wagging your tail all the way to the bank.

To request franchise information, visit https://www.petwellfranchise.com/

November 20, 2020
by 
Joseph Sexton