NEW YORK--(BUSINESS WIRE)--Red Barn Equity Partners a New York-based private investment firm, today announced that its newly formed investment vehicle Red Barn Franchise Holdings LLC (“RBFH”), has made an investment in Dogtopia, (the “Company”) the nation’s leading dog daycare, boarding and spa franchisor. RBFH, a special purpose vehicle comprised of capital commitments from institutional investors and family offices, acquired various interests from Thomas Franchise Solutions USA LLC (“TFS”) 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.
Dogtopia is the nation’s fastest-growing brand in the $95 billion pet industry. Over the past several years, the Company 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, Chief Executive Officer 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 U.S. 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 over the past year. The Company plans to open more daycares by the end of the year in new markets throughout the United States.
About Red Barn Equity Partners
Red Barn Equity Partners is a New-York based private investment firm investing on behalf of family offices and high net worth individuals targeting lower middle market assets in the consumer, industrial, business services, and healthcare industries. The firm focuses on sub-segments characterized by fragmented competitive landscapes with strong secular growth characteristics. Red Barn provides long-term patient capital unconstrained by conventional alternative asset class timelines and seeks to transform sub-scale and underappreciated assets into regional leaders and build first-class professional organizations through thoughtful investment in growth and execution. For more information, visit www.redbarnep.com
About Dogtopia
Founded in 2002, Dogtopia is an early pioneer and innovator in the pet services industry, offering an experience focused on quality of care, safety and transparency in the market. With an emphasis on education, exercise and safe socialization for dogs, pet parents have the assurance of leaving their beloved furry family members in the hands of trained professionals in an environment created with the safety of dogs in mind. For more information, visit www.dogtopia.com.