Skiptown, a technology-enabled dog-care brand, is pursuing acquisitions of similar service providers, said CEO Mike Rotondo.

The Charlotte, North Carolina-based company – which offers daycare, overnight boarding, grooming, and dog walking services – is looking to acquire franchise or corporate concepts with up to 10 locations that it could convert to the Skiptown brand, Rotondo said. It would also consider adjacent services such as dog waste removal and mobile grooming, he added.

M&A would expand Skiptown’s company-owned base while supporting the rollout of its franchise platform, launched late last year.

Skiptown has awarded two franchise agreements in Charlotte and expects to sign another 15 to 20 this year, with eight to 10 franchise locations set to open in 2027, Rotondo said. Each franchise carries an initial fee of USD 45,000, along with a 6% royalty fee and a 2% marketing fee.

The company’s existing corporate locations – in Charlotte, North Carolina; Denver; and Atlanta – offer an off-leash indoor and outdoor turfed park and a full-service bar for humans. The franchise model will not include a park or bar, just the core services, Rotondo noted. Across the system, customers can book services, receive visit reports, and pay through the company’s mobile app.

Skiptown projects systemwide revenue of USD 20m to USD 30m by the end of 2027, according to Rotondo. The Charlotte location is profitable. The Denver and Atlanta sites, opened in late 2024 and early 2025 respectively, are expected to reach unit profitability this year, he said.

Corporate pet-care operators in the fragmented pet services sector typically trade for 3x to 5x EBITDA, while asset-light franchise concepts can command multiples of 8x to 10x and sometimes as high as 15x EBITDA, Rotondo said.

Skiptown has grown organically since it was founded in 2016 by board member Meggie Williams as an app-based dog-walking service. It expanded into brick-and-mortar locations in 2020 and received a USD 27.4m majority investment from Meaningful Partners and Focus Impact Partners in December 2022. Rotondo, 63, joined in December 2024.

Previously, Rotondo was CEO of Altitude Trampoline Parks, Edible Arrangements, and Tropical Smoothie Café. He also held executive positions at Arby’s Restaurant Group, HoneyBaked Ham, and Wendy’s International.

Recurring membership revenue is becoming a key component of Skiptown’s business. The three corporate locations currently have about 6,500 social members paying USD 15 per month for access to the dog parks, Rotondo said. Skiptown recently introduced grooming membership averaging about USD 40 per month, and the service already has nearly 400 members.

Recurring revenue across corporate locations could approach USD 2m by the end of 2026, according to Rotondo.

The broader pet-services sector remains highly fragmented, Rotondo said. He noted larger players such as Red Barn Equity Partners-backed Dogtopia and Camp Bow Wow, a division of Propelled Brands, which is backed by Freeman Spogli and LightBay Capital.

Demand for dog-care services is rising as more pet owners return to the office, Rotondo noted.

An exit for Skiptown is probably still at least three years out, once the company can demonstrate a “sustainable, scalable pipeline,” according to the CEO. A sale to a private equity buyer attracted to the company’s recurring-revenue model is the most likely outcome, he said.

The company works with Anne Caiola of law firm Caiola & Rose and accounting firm Bennett Thrasher. SVB provides debt financing. Wagner Hicks advised Skiptown on its 2022 majority stake sale.