When Anthony Polazzi’s AP Franchised Concepts acquired a minority interest in Zoom Room in 2017, the “astounding” level of customer devotion was part of the attraction to the indoor dog training concept. Now, said Polazzi, the unit economics are equally attractive, and as the brand rises in popularity and swift expansion is underway, he decided to also become a franchisee and secure a large territory in Florida.
Polazzi, the founder and president of AP Franchised Concepts who is also Zoom Room’s chief financial officer, signed a 10-unit agreement to open Zoom Room locations in South Florida’s Broward and Palm Beach counties. A former managing director at Sun Capital Partners, Polazzi created APFC in 2016 to invest in emerging brands—the portfolio includes restaurant concepts Bean Sprouts, Han Dynasty, Raw Jūce and The Kebab Shop along with Zoom Room and Honor Yoga—and he now wants to build his own platform of brands as a franchisee.
Zoom Room, based in Culver City, California, and with 43 locations open, is Polazzi’s first deal as a franchisee. The concept, he said, “has almost unparalleled customer loyalty,” and with adjustments made in recent years to improve the model, “we’ve been able to match the economic benefit with that as well.”
Anthony Polazzi is the CFO of Zoom Room and also the brand’s newest franchisee.
Launched in 2008, Zoom Room offers a variety of dog training classes, including those focused on agility, obedience, socialization and enrichment, plus puppy-specific classes. The brand emphasizes its positive dog training methods and its focus on also training the pet parents to help their dogs master the skills. After growing to 20 units in its first five years of franchising, a handful of units closed and CEO Mark Van Wye put a two-year moratorium on new locations as the company worked to rebuild its franchise infrastructure. It relaunched franchise development efforts in 2019 and has since focused on steady, sustainable growth, said Polazzi.
“Mark and I both believe significantly in a data-driven approach,” he said. “We try to make sure everything we do has a dual benefit: a benefit for the customer and also that it’s to the economic benefit of the franchisee.”
One beneficial change was to Zoom Room’s pricing structure, which was adjusted to facilitate regular attendance as the company found its most loyal customers were attending four or five classes in their first few weeks. The company also implemented a streamlined curriculum, with both introductory and advanced classes that also emphasize “scalable skills,” said Polazzi, and make Zoom Room’s services repeatable to attract longtime customers.
The socialization aspect of Zoom Room remains key, with five or six dogs (and humans) in each class, versus the option of sending a dog away to a private trainer. “The dog is around other dogs and people, which is when you want them to be able to behave,” said Polazzi. “And it’s more fun for the owner.”
Average monthly gross revenue was $50,103 in August 2022, with average annual gross revenue of $686,929 and average net profit of $217,047 for locations that opened prior to January 1, 2020. For newer locations, those opened after January 1, 2020, average gross revenue was $417,598, with average net profit of $104,692. Zoom Room’s typical footprint is 3,000 square feet, with a total initial investment range between $271,660 and $407,410.
Polazzi, who has a 2-year-old Labrador named Piper, said he signed the 10-unit deal to lock in a market where he sees “significant opportunity” to develop the brand. “I knew if I waited much longer, there wouldn’t have been an opportunity to get such a large, contiguous territory,” he said.
Zoom Room is opening a new location every couple of weeks, Polazzi noted, and is well-positioned in a pet industry with “a ton of momentum” as people invest not only in their pets’ nutrition and veterinary care but also in pet services. The concept is also “on the far end of the experiential curve,” he added, and so appeals to the human customer looking for an experience.
“The next five years are just going to be amazing,” he said. “We’re not trying to steal share from a significant player—we’re the first mover.”