Pet Bar Franchise Growth in Secondary Markets: Why Asheville Worked First

Top TLDR: Pet bar franchise growth in secondary markets started in Asheville, North Carolina because the city mixed outdoor culture, strong dog ownership, and lower operating costs than coastal hubs. Wagbar opened in Weaverville in November 2019 and proved the off-leash dog park and bar concept well enough to license it nationally. Prospective franchisees should study Asheville's proof points before picking a comparable mid-sized city.

Key Takeaways

  • Pet bar franchise growth in secondary markets works when a city pairs outdoor lifestyle, craft beverage culture, and dog-forward households.

  • Wagbar opened its flagship in Weaverville, NC in November 2019 and signed franchisees across 13 states.

  • Secondary markets offer lower real estate costs and tighter community word-of-mouth than tier-one metros.

  • The pet care sector topped $147 billion in U.S. spending, giving smaller cities a buyer base that used to only exist in big metros.

  • Action step: benchmark your target city against Asheville's population size, median income, and outdoor recreation score before you inquire.

Secondary markets used to be an afterthought for national franchisors. Chains pushed into New York, Los Angeles, and Chicago first, then filled in mid-sized cities once the brand had scale. Pet bar franchise growth has flipped that pattern. Asheville, a mountain town with about 94,000 residents inside city limits and roughly 470,000 across Buncombe County, became the birthplace of the off-leash dog park and bar category. The story of why it worked there first is worth studying if you're sizing up a franchise market of your own.

What Counts as a Secondary Market for a Pet Bar Franchise

Franchise analysts usually draw the line between primary and secondary markets at population and media reach. Primary markets are the top 10 to 15 U.S. metros. Secondary markets typically sit between 250,000 and 2 million in metro population, with their own TV market but without the saturation of a tier-one city. Think Asheville, Knoxville, Richmond, Savannah, and Greenville.

For a pet bar franchise, the population count matters less than the psychographic fit. A city of 350,000 with heavy dog ownership, a built-out craft brewery scene, and strong tourism can out-perform a metro of 4 million where dogs live mostly in high-rise apartments and dog parks are rare. Wagbar's off-leash dog bar concept is a psychographic play, not a density play. That distinction is why Asheville made sense as ground zero.

Asheville: The Proof of Concept Every Pet Bar Franchise Needed

Kendal Kulp had the idea for a combined off-leash dog park and bar in 2015 after a bad day at a traditional dog park. Four years later, in November 2019, he and his father Kajur Kulp opened the first Wagbar in Weaverville, just north of Asheville. They built much of the space themselves and opened into the teeth of the COVID-19 pandemic, which forced them to test outdoor social distancing in real time.

The concept held. Wagbar earned Best Pet Friendly Bar/Brewery in the Mountain Express Best of WNC poll three years running and landed on USA Today's 10Best Dog Bars list at #10. You can read the full story on the About Wagbar page. What those awards really confirmed was simpler: a mid-sized, outdoor-friendly city with a dense population of dog owners will pay for a place where the dogs run off-leash and the humans can grab a seat at the bar.

Secondary Market Advantages That Made Asheville Work

Asheville offers a cluster of traits that show up together in successful pet bar markets. Outdoor recreation drives daily foot traffic. Tourism keeps summer weekends full. Craft beverage culture normalizes paying $7 for a pint. And dog ownership sits well above the national average because residents chose mountain towns partly for the trails their dogs can walk. The pet industry market analysis page breaks down how these traits translate into household spending.

Secondary cities also tend to have what big metros lose: word-of-mouth velocity. One Saturday of strong dog owner turnout creates a buzz that spreads through Facebook groups, neighborhood associations, and local podcasts within a week. That kind of organic reach is harder to buy in a primary market where attention fragments across hundreds of competing venues.

Lower Real Estate Costs and Faster Build-Out Timelines

Commercial rent in Weaverville runs a small fraction of what comparable outdoor-ready space costs in Atlanta, Miami, or Dallas proper. For a concept that needs a large fenced yard, parking, and utility runs for a bar, land economics matter more than for a coffee shop that fits in 1,200 square feet. Lower rent plus lower build costs means you hit breakeven faster and can price memberships to the local market without squeezing margin.

Build-out timelines are shorter in secondary markets too. Permitting offices move faster when you're not one of 60 active restaurant builds in the queue. Wagbar's container bar system uses converted shipping containers as pre-equipped bar and bathroom units, which lines up well with small-market municipal review. That combination helped the flagship open on a realistic timeline and supports new franchisees hitting their planned opening windows.

Community-First Buying Behavior in Smaller Cities

Smaller cities buy from people, not brands. A franchisee in a secondary market has a meaningful chance to become a known person in town. They show up at Chamber events, sponsor a little league team, pour drinks at a fundraiser. Customers come back partly because they like the dogs and partly because they like the owner.

This matters because pet bar memberships are a repeat-visit business. A typical Wagbar member visits many times per month, which means the membership model depends on relationships that compound over quarters and years. Secondary market franchisees can build those pet franchise relationships faster than operators running a lower-touch store inside a primary metro. That's a structural advantage, not a soft one.

Weaverville as a Launch Pad for Franchise Expansion

The Weaverville flagship also served as an in-person training site. Every Wagbar franchisee spends one week on location learning dog behavior management, bar operations, and the membership model under the original team. The Weaverville location has since trained franchisees heading to Knoxville, Richmond, Phoenix, Myrtle Beach, Cincinnati, and more.

Using the first store as the training campus solves a problem most emerging franchisors hit around unit 5: how do you teach the system without the founder flying around to every city? By picking Asheville first and building training into the flagship, Wagbar kept unit economics portable. Franchisees in other secondary markets open with the same operating cadence the original team runs, and deviations are easier to spot because everyone calibrates from the same starting point.

How Wagbar Franchisees Are Applying the Asheville Playbook

Wagbar franchisees have been selected with the Asheville template in mind. Each confirmed owner brings a background that maps to the model:

  • AJ Sanborn (Richmond, VA) spent 20 years in financial services before signing his franchise agreement.

  • Dianna (Phoenix, AZ) came from IT sales with restaurant industry experience.

  • Jennifer (Los Angeles, CA) left a corporate role to open her hometown location.

  • Liz and Shelby (Knoxville, TN) pair finance and sales backgrounds in a partnership model.

  • Brandi and Denise (Charlotte, NC) and Matt and Taylor (Myrtle Beach, SC) round out the current roster.

Most of these cities are secondary markets in the exact sense Asheville is: mid-sized, outdoor-tilted, with strong pet ownership and craft beverage scenes. Knoxville is the tightest comp, which is why it's tracking as one of the fastest moving new locations. You can see an up-to-date roster on the Wagbar franchising page.

Secondary Markets on the Wagbar Expansion Map

Wagbar's expansion footprint reflects a secondary-market-first strategy, with selective primary market entries where a franchisee's local knowledge makes the case. Current locations in development include:

  • Southeast: Cary, Charlotte, and South Asheville (NC), Greenville (SC), Myrtle Beach (SC), Savannah (GA)

  • Mid-Atlantic: Richmond (VA), Frederick (MD)

  • Midwest: Cincinnati (OH)

  • Southwest: Dallas (TX), Phoenix (AZ)

  • West Coast: Los Angeles (CA) and Long Beach (CA)

Independent dog bar and park operators already run successful venues in many of these cities, which validates demand. Wagbar franchisees aren't entering cold markets. They're bringing a tested system and national brand to places where local operators have proven people will pay for the experience. The best cities for dog franchise success resource goes deeper into the demographic profile.

Investment Benchmarks for Pet Bar Franchise Growth

For prospective franchisees weighing a secondary market, here are the current Wagbar investment figures:

  • Initial franchise fee: $50,000

  • Estimated initial investment range: $470,300 to $1,145,900

  • Royalty: 6% of adjusted gross sales

  • Marketing fund contribution: 1% of adjusted gross sales

  • Multi-unit discount: 50% off the franchise fee if you commit to three or more units

These ranges track well with pet industry franchise benchmarks for concepts that require outdoor acreage and a licensed bar. Smaller cities will typically land at the lower end of the investment range because of land costs and build-out pricing, while primary metros push toward the top of the band.

Evaluating Your Own Secondary Market for a Pet Bar Franchise

If you're considering your own city, walk through the checks Asheville passed. A market worth investigating should score well on most of the following:

  1. Metro population between 250,000 and 2 million

  2. Dog ownership rate at or above the U.S. average of roughly 45%

  3. Median household income near or above the national median

  4. A craft brewery count that reflects a drinking-out culture

  5. Access to outdoor recreation within 30 minutes of city center

  6. Commercial rent below primary-market benchmarks

  7. Zoning that supports a fenced outdoor yard plus a licensed bar

Cities that score 5 of 7 or better are worth a closer look. The what is a franchise overview covers how to take that shortlist and run it against your own timeline, capital position, and operating experience.

Frequently Asked Questions

Why did Wagbar choose Asheville for the first pet bar franchise instead of a larger city?

Asheville matched the psychographic profile the concept needed: outdoor-focused residents, strong dog ownership, craft beverage culture, and a population large enough to support a membership-driven venue without the rent load of a primary metro. Opening the flagship in a secondary market also kept startup capital requirements manageable while Kendal and Kajur Kulp built the operating model.

What makes a city a good secondary market for a pet bar franchise?

The best candidates pair mid-sized metro population with high dog ownership, outdoor lifestyle culture, and a strong local beverage scene. Real estate costs should sit below primary-market averages, and zoning should allow a fenced outdoor yard paired with a bar. Asheville, Knoxville, Richmond, Greenville, and Savannah all fit that profile in different ways.

Is pet bar franchise growth actually faster in secondary markets than primary markets?

Yes, in most cases. Secondary markets have lower build costs, faster permitting, and tighter word-of-mouth networks that help membership growth compound. Primary metros can still work, but they usually require a franchisee with deep local knowledge and a location that solves the real estate cost problem.

How many Wagbar franchisees are currently operating in secondary markets?

Confirmed franchisees are developing locations in Knoxville, Richmond, Phoenix, Myrtle Beach, Charlotte, Cincinnati, Savannah, Cary, South Asheville, Dallas, Los Angeles, Long Beach, and Frederick. Most of these are secondary markets. A current map sits on the Wagbar locations page.

What's the minimum investment to open a pet bar franchise in a secondary market?

Wagbar's estimated initial investment range is $470,300 to $1,145,900, with a $50,000 initial franchise fee. Smaller secondary markets usually land near the low end of that range because of more reasonable real estate and build-out costs. Final figures depend on your specific site, buildout scope, and local construction pricing. Full financial details are disclosed in the Franchise Disclosure Document.

How does Wagbar train franchisees coming from secondary markets?

Every franchisee completes one week of on-site training at the Weaverville flagship in Asheville, plus uses the proprietary "Opener" app to manage pre-opening steps. The Wagbar team provides on-site support during grand opening and ongoing operational help through quarterly business reviews.

Bottom TLDR

Pet bar franchise growth in secondary markets began with Wagbar's Weaverville flagship in 2019 because Asheville's mix of outdoor lifestyle, dog-heavy demographics, lower real estate costs, and craft beverage culture proved the concept without primary-market rent pressure. Secondary cities like Knoxville, Richmond, and Greenville mirror that profile. Prospective franchisees should score their target city against Asheville's benchmarks before requesting an FDD.