To whom are the additional funds for the first 3 months of operating a Zoomin Groomin franchise paid?
Zoomin_Groomin Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Expenditure | Estimated Amount (Low) | Estimated Amount (High) | Method of Payment | When Due | To Whom Payment is to be Made | |
|---|---|---|---|---|---|---|
| Additional Funds-3 Months (Note 11) | $5,000 | $10,000 | As Arranged | As Necessary | Us, Employees, Utilities, Lessor & Suppliers |
Note 11: Additional Funds - 3 Months. The estimate of additional funds for the initial phase of your Franchised Business is based on your staff wages, salaries and benefits, and operating expenses for the first three months of operation. The estimate of additional funds does not include an owner's salary or draw and it is expected that you will manage and promote the Franchised Business. Pet groomers (your "staff") are typically paid a percentage of each groom (a "commission") plus tips, and we do not recommend that you hire any staff while your Vehicle is not in operation. Your costs will depend on factors such as how closely you follow our recommended systems, as well as on your technical, marketing and general business skills, local economic conditions, the local market for your business, competition, local cost factors, location and the sales levels achieved by you. We base this estimate upon the years of experience our management team has in the industry.
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 20–27)
What This Means (2025 FDD)
According to Zoomin Groomin's 2025 Franchise Disclosure Document, the additional funds required for the first three months of operation are paid to several entities. The table in Item 7 indicates that these funds, estimated between $5,000 and $10,000, are paid to Zoomin Groomin itself, employees, utilities, lessors, and suppliers.
These additional funds are intended to cover staff wages, salaries, benefits, and other operating expenses during the initial phase of the Zoomin Groomin business. The FDD specifically notes that the estimate does not include an owner's salary or draw, as it is expected that the franchisee will manage and promote the business. The amount needed will depend on factors such as adherence to Zoomin Groomin's recommended systems, the franchisee's skills, local economic conditions, market competition, and achieved sales levels.
Pet groomers, referred to as "staff," are typically compensated with a commission based on a percentage of each grooming service, in addition to tips. Zoomin Groomin advises against hiring staff while the vehicle is not in operation, implying careful management of labor costs is important during the startup phase. Prospective franchisees should carefully budget these additional funds, considering the various factors that can influence the final amount required to sustain the business during its initial months.