Ultimately, Nichols leased 9,000 square feet for her original location. “We have learned a lot since that build-out,” she says. “Over the six years of it being open, we have used five different types of flooring, three different types of wall treatments, and completed major renovations twice.”

Floor options ran the gamut from ceramic tile in one room, VCT flooring (vinyl) in one room, and painted concrete in another. Just six months after opening, she tore it all up in the playrooms and went with $5,000 in rubber flooring, which worked great at first, but then became porous and odor laden. So, Nichols bought at $10,000 air purification system and a $2,000 floor scrubber. “So you can see how it went,” Nichols says, with chagrin at the snowballing costs after her initially tight budget forced compromises and then additional expenses.

Nichols finally settled on Tuflex rubber flooring. “We’ve been very happy with it. We’ve now had it down for five years.”

Because Nichols wants her stores to feel more like childcare centers, than dog facilities, there are no fences. Real rooms with real walls divide the playgroup spaces. But, dogs do a number on walls. No paint holds up to almost constant scrubbing. So, Nichols experimented with Plexiglas mounted to a height of 4 feet on all playroom walls. Her final choice, however, came with FRP (fiberglass reinforced plastic) to cover lower portions of the walls.

The Tysons Corner location also didn’t originally have vestibules as transition spaces between hallways and playrooms. It’s since been retrofitted to include them so that incoming and outgoing dogs don’t face a gauntlet of playmates on entrance or exit. And, the drains installed in the playrooms? Well, they’ve been covered up for years after early use resulted in clogs from all the loose hair.

“The original facility may never be perfect,” Nichols says. “But we took all of the lessons learned and applied them to the 2005 construction of our corporate headquarters (and second facility) in North Bethesda, Maryland.”

In her second year at Tysons Corner, the facility grossed over $1 million. Nichols explains, “That’s when I said, ‘We have something here.’ This business model clearly works. It was time to look at ways we can expand it.”

She assumed she’d always have more than one location. Calls for help from others wanting to open dog daycares came in, but Nichols knew she didn’t want to consult, and she found the management of a growing staff at multiple locations increasingly harder. That’s when she realized that owner-operators started to make sense. “No one cares like an owner,” she says.

That’s how the franchise idea for a nationwide system of Dogtopia locations was born. As of July 2008, there are 10 locations open and another 25 in development, spanning 14 states. Nichols goal is to make opening new locations much easier for the franchisees than it was for her. In addition to her own expertise, hard-learned lessons, and proven model, Nichols pays for an independent business coach who consults privately with each franchisee every other week.

Dogtopia uses an all-in-one computer system that’s compact and free-standing. It fits entirely on the front desktop with no hanging wires or cords in which dogs could get tangled. The software system tracks attendance in daycare and boarding, as well as maintains client records, including vaccinations, medications, foods, allergies, or special needs. 

Each location features a lobby retail area, which carries popular national brands and local favorites. More expensive items sell better. “Dogtopia customers, who will spend the money to bring their dog to daycare, will typically want quality toys for their dogs,” Nichols says.

Dogtopia uses newspaper ads and postings to CraigsList.org to advertise for open positions. People apply online via the company’s Web site. Qualified individuals get interviews. References are checked and offers made. All employees start in the playrooms, following training and progressive steps aimed at their independent performance of duties over the first few weeks.

Dogtopia managers come from within. “Our entire management team, including those involved with franchising, started out in the playrooms managing the dogs,” Nichols says. “Employees who show initiative are progressively given more responsibilities and are encouraged to learn and grow with the company.”

She adds, “We’ve tried to bring in people from outside the company, but it’s almost like if they don’t appreciate what we’re about from the bottom up, they don’t get the culture.”

Dogtopia uses food as a motivator. Occasional breakfasts or lunches as well as readily available snacks keep people powered up.

Holiday bonuses are common, and raises based on performance reviews are also important. When a raise isn’t feasible, staff members sometimes choose to earn more “paid time off,” which can be used in increments as small as four hours for sick, personal, or vacation time. Based on their position, team members earn 2-4 hours of time off per pay period. So, rather than saying you get X time after six months or a year of employment, staff begin accruing time right away. “It’s worked so well for us,” Nichols says. “I’m surprised when others, especially those with hourly employees, don’t do it this way.”

Franchisees are required to spend 2 percent of their gross on marketing and public relations efforts. Most spend $2,500 or more on grand opening materials. To supplement that, Nichols and the corporate team spend a significant amount for advertising campaigns (like the “Everybody Wants to be a Dog” campaign, which featured various animals acting like dogs in hopes of getting into Dogtopia), a public relations company which seeks local and national print and TV attention for the company and various locations, and a full-time marketing/graphics person to do all collateral and print materials and to develop and maintain Dogtopia’s all-important Web site.

“If a company’s Web site does not accurately reflect the quality of their business virtually, they can easily lose customers before they even walk through the door,” Nichols emphasizes. “To us it is as important as our lobby. It’s the first impression many new customers will have of your business. A great deal of time is spent evaluating the look, feel, and usability of the Web site. We do our best to give good information without being too text heavy. The highest amount of page views comes from our photo galleries and webcams—by far! People love to see what we do, and we want to share as much of it as we can with them.”

Word of mouth and repeat business is the cornerstone of Dogtopia success, so Nichols trains her staff to practice “The Three S” rule—smile, story, and satisfaction. Customers are greeted warmly (smile). They hear an anecdote from their dog’s stay (story), and they’re asked about booking their next boarding or daycare stay (satisfaction).

“A dog has just spent 8-12 hours with us, staff should be able to tell the customer something,” Nichols explains.

There is also a significant outreach effort to local rescue and charity organizations, including sponsorships of their fundraising events and the free long-term fostering onsite of adoptable dogs. Dogs adopted from rescues also receive their first day of daycare free.

Special interest and community events also bring people in—from Bark for the Arts, a gallery-like show of a local pet photographer’s work, to Doodle Days, which brought in 75 “doodles” for a private party. Enthusiasts of Italian Greyhounds, Cavalier King Charles Spaniels, and Pugs have also requested private events.

As an outgrowth of this community work, Nichols founded a non-profit organization (www.K9support.org), which raises money and collects items for military working dogs in Iraq and Afghanistan. She says the response since July 2005 has been overwhelming. Dogtopia locations host dog washes to raise funds to buy and ship items to these working dogs overseas. “In four hours, we washed 155 dogs and raised over $9,000,” Nichols says of one such event. All told, she’s shipped 5,000 pounds of supplies and collected $25,000 in donations.

Now that Dogtopia has moved into the age of franchising, which is growing in the petcare industry, Nichols finds herself measuring the motives and goals of people wanting into the dog game. She won’t take on franchisees who are only in it for the money. Those who exclusively see dogs as money-makers won’t fit in. Nichols teases about the strict policy of “Management Evaluation” of any new puppies. That means staff knows she wants any cuties to come visit her office for some kissing and cuddling. She believes strongly that you’ve got to love dogs to do this hard work.

By the same token, however, she believes that “If you treat it like a hobby, it will remain a hobby. Even thought we are doing what we love, it’s still a business … Monitoring your business plan (or even creating one) may not be your ‘dream,’ but it is what gets you and keeps you there.”

By the same token, however, she believes that “If you treat it like a hobby, it will remain a hobby. Even thought we are doing what we love, it’s still a business … Monitoring your business plan (or even creating one) may not be your ‘dream,’ but it is what gets you and keeps you there.”

Amy Nichols was quite attached to her original business name, Happy Tails Dog Spa. So, losing it was, she says, “a huge deal. It was like losing a part of me. It was really upsetting.” But, as her franchise efforts moved forward, she realized that most markets already had at least a few pet businesses already named Happy Tails in one form or another. And, national franchises need a name that can be trademarked, she explains, “because you need to be able to (legally) protect that name anywhere you have a franchisee.”

Making the name change on her two locations and the early franchisees wasn’t cheap, but it was necessary.

Unfortunately, the change led to another issue since there’s a cyber squatter holding Dogtopia.com. The owner of that URL isn’t using it, but it’s taken. Still, Nichols is pretty happy with www.dogdaycare.com. “I feel like you either get your name or you get something that describes you really well, and you can’t get any better than that,” she says. “Plus, if you search on Dogtopia, our site comes up first anyway. If you type in Dogtopia.com, there’s nothing there.”

Such dilemmas about naming are common. That’s why many startups search for open URLs before choosing a company name.

Services

Dog boarding, training, pet supplies (high-end toys, treats, clothing), grooming, day care, self-serve dog wash

No. Dog Enclosures

80 per location

No. of Employees

12+ full-time staff members per Dogtopia location/franchise

Hours

Monday – Friday, 7 a.m. – 7 p.m.

Saturday, 10 a.m. – 5 p.m.

Sunday, 11 a.m. – 2 p.m. (boarding pick up and drop offs only)

* Dogs arriving later for boarding with daycare prior must arrive no later than 3 p.m. to avoid disruptions and issues, where new energized dogs bother those who are tired from playing all day.

Reservations

Some locations require reservations due to popularity, but in many cases walk-ins are welcome as long as the dog has passed evaluation and other requirements are in place.

For boarding, a $100 deposit is required for major holidays.

Requirements

Pass temperament evaluation (30 minutes, $15 one-time fee)

Completed paperwork (pet personality profile, owner info sheet, owner agreement)

Proof of rabies, distemper (DHPP), and bordetella vaccinations (titers accepted)

Pups under 4 months old, at least the second round of DHPP and bordetella. Older than 4 months requires rabies, too.

Over 7 months, spay/neuter required.

Feeding Schedule

Boarders – fed 7 a.m. and 7 p.m., with snack or lunch at naptime (Noon – 2 p.m.)

Daycare – lunch or snack at noon, if requested

Medications dispensed as required.

Nutro products or food from home fed as requested. Strict “OPF List” (owner provided food only) maintained for dogs with food allergies or sensitive stomachs.

Cleaning Supplies

Solutions from Zep, including Lemonex and a food safe bleach; brooms, mops, buckets, etc.

Biodegradable Poop Sack Usage

About 45,000 per location annually

Other Supplies

Crates, futons, rubber mattress covers, fitted sheets, elevated dog beds, water coolers, play equipment, toys

Web site

www.dogdaycare.com