DOGUE, a retail boutique and spa brand that caters to man’s best friend has recently started franchising.

The company was established in 1998 and CEO Margaret Hennessy joined the business in 2005. 

She says franchising has been on the agenda since that time, and the expansion plan is to be steady and well timed. 

“As a small company, we understand the importance of continuing to grow steadily and in line with our strengths.

“We are pretty conservative about the roll out plan because I think that’s where I see a lot of franchises having difficulties. You often hear experienced franchisors say if they had their time again they would roll their model out more slowly.”

THE OFFERING

Each DOGUE boutique includes a retail as well as day care and spa area, Hennessy explains. “We specialise in very intimate, high quality grooming and day care. We differentiate ourselves on the level of customer service we provide and our knowledge of our customers, and by customers I mean the dogs.” 

In addition, each store is designed so as ensure there is a connect between both arms of the business.

“The concept is very much about being a boutique and spa, so people walk in and there’s the boutique where they can get collars, beds and so on, and then the dogs go through to the grooming and day care area – it flows very nicely between the retail and the spa area.”

THE FINANCIAL OPPORTUNITY

Hennessy says a DOGUE boutique and spa can demonstrate strong revenue in its very first year of operation.  

“Based on the historical performance of Bondi Junction and our other stores, we experience revenue growth of between 15 and 30 percent in the first few years of operation – variation relates to store location, size blend of business and so on.”

She adds the Bondi Junction store has enabled the DOGUE business to grow. “It has delivered steady growth and is a consistently profitable business that has largely funded DOGUE’s growth and investment in brand expansion and the strategy and development of the franchise model.”

THE CUSTOMER EXPERIENCE

DOGUE has opted for franchising out of a desire to see store owners working in their business – there is a belief that the overall customer experience and trust formed is like no other. 

“We are dealing with people’s companions – they are very important to them so you really want someone trusted to be taking care of them.

“I want to encourage that trust that an owner of the store has. Not to say staff can’t have that as well but if you are coming back and seeing the same person again and again I think that’s really important,” says Hennessy.

EXPANSION

There are currently four DOGUE stores in operation across Sydney – three are under license and the flagship store in Bondi Junction is company owned.  

Hennessy has established both short and long term expansion goals for the business, and reiterates market saturation is not the plan.

“Our aim over the next 12 months would be to have between three and five franchisees on board. When we talk about how big we want to be in Australia we are probably looking at 40 to 50 stores.

“The stores are very community based and we don’t want one on every corner by any means,” she says.

International markets could also eventually be on the cards. “We are very passionate about our brand and we see DOGUE going all over the world,” Hennessy adds.  

HAVE YOU GOT WHAT IT TAKES?

It is vital that DOGUE franchisees have a genuine passion for the brand, as well as an interest in dogs.  

“It is important they are passionate about the brand and what we do – they need to understand what DOGUE is about and the quality of service and products that we offer.

“A level of business acumen is important, and we like franchisees to be driven to connect with their local community,” she explains.

DO YOUR RESEARCH

Hennessy advises potential franchisees compare brands within the same market, and understand the franchising model before they invest.

“Understanding the commitment that is involved is important – we ask all of our potential franchisees to undertake an ACCC course, which outlines the roles and responsibilities of franchisors and franchisees, the Franchising Code of Conduct and so forth.”

Hennessy adds potential franchisees look into the head office team and support on offer at their brand of choice.

“Get to know the different people involved with the franchise business, because you will be working very closely together, and familiarise yourself with the people that are going to support you.”