Red Barn Equity Partners Announces Significant Investment in Dogtopia
Red Barn Equity Partners, a New York-based private investment firm, last week announced its newly formed investment vehicle Red Barn Franchise Holdings LLC, has made an investment in Dogtopia the nation’s leading dog daycare, boarding and spa franchisor. Red Barn Franchise Holdings, a special purpose vehicle comprised of capital commitments from institutional investors and family offices, acquired various interests from Thomas Franchise Solutions USA LLC and Dogtopia Enterprises LLC.
Dogtopia currently has 144 active locations throughout the United States and Canada with future unit growth supported by a substantial pipeline of incremental franchise rights already sold for additional locations to be developed by 2024. Separately, Red Barn Equity Partners owns the largest franchisee portfolio within the Dogtopia franchise system through Red Barn Dog Holdings LLC.
In the past several years, Dogtopia has been the recipient of multiple industry awards including the number one pet services franchise in Entrepreneur Magazine’s 41st Annual Franchisee 500 list, named “Best Pet Franchise” by Franchise Times magazine in its Annual Zor awards and was recently named a Top Franchise for 2020 by Franchise Business Review.
Following the transaction, Christopher Kempner, Co-Founder of Red Barn Equity Partners, will become Chairman of Dogtopia’s Board of Directors. Neil Gill, CEO of Dogtopia will continue in his role with no anticipated changes to the company’s leadership team. Peter Thomas, Dogtopia’s former Chairman, will also remain invested as a Limited Partner.
“Red Barn’s proven experience as a Dogtopia multi-unit operator combined with the company’s existing leadership team and expertise, is a winning formula that places Dogtopia on the right track for continued success,” said Peter Thomas, Chairman, Thomas Franchise Solutions. “I believe the company will have its best shot at greatness with this team moving forward.”
Amidst the impact of Covid-19, domestic dog ownership in the US has surged and long-term organic growth rates for non-medical pet services are expected to accelerate post pandemic. Dogtopia’s business has already benefited from these developments having awarded nearly 40 new franchise licenses throughout the past year. The company plans to open more daycares by the end of the year in new markets throughout the United States.