What does 'Grooming Revenue' mean for All Dogs Unleashed commercial facilities?

According to All Dogs Unleashed's 2025 Franchise Disclosure Document, 'Grooming Revenue' for commercial facilities is defined as all revenue generated by the commercial facilities attributable to the sales of grooming services during the Reporting Period, as reported to All Dogs Unleashed by the commercial facilities. This means that any money a commercial All Dogs Unleashed location makes from providing grooming services to dogs is classified as grooming revenue.

For a prospective franchisee, understanding this definition is crucial for accurately tracking and reporting their financial performance to All Dogs Unleashed. It ensures that revenue is categorized correctly, which is important for calculating royalties and assessing the overall profitability of the franchise. The FDD also provides data on average grooming ticket prices at certain locations, such as $18.54 in Omaha, $79.69 in CO Springs, $22.73 in Shreveport and $29.51 in Dallas, which can give franchisees an idea of potential revenue from grooming services.

It's important to note that the definition specifies that the revenue must be 'reported to us by the Commercial Facilities,' emphasizing the franchisee's responsibility to maintain accurate records. Additionally, the financial performance representations in Item 19 are historical and may not be indicative of future results, as stated in the document: 'The financial information presented in this Item 19 is not a representation that the Commercial Facilities will generate the same revenues or incur the same costs or expenses in the future, nor is it a representation that you will achieve the same results. Your individual results may vary.'

Overall, 'Grooming Revenue' represents a specific income stream for All Dogs Unleashed commercial facilities, and franchisees should pay close attention to how this revenue is tracked and reported to ensure compliance and accurate financial analysis.