What additional fee is charged on late payments of the Zoomin Groomin Audit Fee?
Zoomin_Groomin Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| Audit Fee | Cost of audit plus $50 late fee per month on any late payment | Upon demand | You will pay to us our cost in performing an audit of your Franchise Business plus a Late Fee of $50 per month on any late payment found through such audit if the audit discloses an under reporting of Gross Revenues or underpayment to us by 5% or more. |
Source: Item 6 — OTHER FEES (FDD pages 16–20)
What This Means (2025 FDD)
According to Zoomin Groomin's 2025 Franchise Disclosure Document, a late fee of $50 per month is charged on any late payment of the Audit Fee. This Audit Fee is incurred if an audit of the franchisee's business reveals an under reporting of Gross Revenues or underpayment to Zoomin Groomin by 5% or more. The Audit Fee itself covers the cost that Zoomin Groomin incurs to perform the audit of the franchise's business.
This means that if Zoomin Groomin conducts an audit and finds that a franchisee has under reported their gross revenues or underpaid by 5% or more, the franchisee will be responsible for covering the cost of the audit. Additionally, if the franchisee is late in paying the Audit Fee, they will incur an additional late fee of $50 per month until the Audit Fee is paid.
Franchisees should ensure accurate financial reporting to avoid audits and associated fees. It is also important to promptly pay any Audit Fees to avoid incurring additional late fees. This policy incentivizes accurate reporting and timely payments, protecting Zoomin Groomin's revenue stream and ensuring compliance with the franchise agreement.