Who administers the Zoomin Groomin Advertising Fund?
Zoomin_Groomin Franchise · 2025 FDDAnswer from 2025 FDD Document
Advertising Fund.You agree to contribute 2% of your Gross Revenues into our Advertising Fund. (Franchise Agreement, Section 1.8.C). Franchisor owned outlets will be required to contribute to the Advertising Fund. We administer the Advertising Fund. The Fund is not audited. Unaudited financial statements of the Advertising Fund will be made available to you upon written request. If not all Advertising Fees are spent in the fiscal year in which they accrue, we will carry over those fees and apply them to the next fiscal year.
In our last fiscal year ending December 31, 2024, the Advertising Fund spent 100% of its funds on social media, text messages, other media placement, and marketing overhead.
We do not use Advertising Fees to solicit new franchise sales.
Advertising Council. We have a Franchisee Advisory Council ("FAC") composed of franchisees that may advise us on operational and advertising policy. We select the members. The FAC serves in an advisory capacity only. We have the power to form, change, or dissolve the advertising council.
Source: Item 11 — **FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 27–32)
What This Means (2025 FDD)
According to Zoomin Groomin's 2025 Franchise Disclosure Document, the franchisor administers the Advertising Fund. Franchisees are required to contribute 2% of their gross revenues to this fund, and franchisor-owned outlets also contribute. The document states that the fund is not audited, but unaudited financial statements are available to franchisees upon written request.
For prospective franchisees, this means that Zoomin Groomin has direct control over how the advertising funds are spent. While the FDD ensures that franchisees can request unaudited financial statements, the lack of an independent audit might be a point of concern for some. It would be prudent to review these statements carefully and possibly seek advice from a financial professional.
The FDD specifies that in the fiscal year ending December 31, 2024, 100% of the Advertising Fund was allocated to social media, text messages, other media placement, and marketing overhead. Zoomin Groomin also confirms that Advertising Fees are not used to solicit new franchise sales. This provides some transparency regarding the fund's usage, assuring franchisees that their contributions are directed towards marketing and advertising activities intended to benefit the brand and its existing locations.
Zoomin Groomin also utilizes a Franchisee Advisory Council (FAC) composed of franchisees that may advise on operational and advertising policy. However, Zoomin Groomin retains the power to form, change, or dissolve this council, and the FAC serves only in an advisory capacity. This structure indicates that while franchisee input is considered, the franchisor ultimately makes the final decisions regarding advertising and operational policies.