What was the amortization expense for Zoomin Groomin in 2023?
Zoomin_Groomin Franchise · 2025 FDDAnswer from 2025 FDD Document
| 2024 | 2023 | 2022 | |
|---|---|---|---|
| Expenses | |||
| Advertising and Marketing | 919,283 | 280,833 | 96,532 |
| Amortization Expense | 6,000 | 6,000 | 6,000 |
| Area Rep Expense | 1,658,376 | 568,628 | 74,059 |
| Commissions and Consulting | 167,473 | 198,260 | 9,750 |
| Contract Labor | 48,517 | 4,025 | 3,750 |
| Filing Fees | 8,569 | 7,905 | 5,951 |
| Insurance Expense | 7,492 | 5,368 | 4,203 |
| Lease Expense | 27,258 | - | - |
| Legal and Professional | 68,861 | 12,145 | 10,294 |
| Licenses & Fees | 175 | 601 | 535 |
| Meal Expense | 11,695 | 10,425 | 5,372 |
| Meeting Expense | 832 | 2,027 | 10,737 |
| Office Expense | 18,731 | 6,775 | 10,885 |
| Overhead - Corporate | 634,593 | 394,933 | 118,779 |
| Overhead - Marketing & Sales | 662,427 | 743,021 | 205,038 |
| Payroll Taxes | 22,435 | 12,267 | 5,191 |
| Postage and Shipping | 3,622 | 1,810 | 1,463 |
| Salaries and Wages | 296,420 | 163,480 | 71,349 |
| Technology Expense | 30,152 | 32,411 | 33,437 |
| Training Expense | 79,407 | 31,004 | - |
| Travel Expense | 38,807 | 25,712 | 12,748 |
| Van Sales Expense | 13,470 | 6,997 | 1,917 |
| Total Expenses | 4,724,595 | 2,514,627 | 687,990 |
| Net (Loss) | $ (1,825,281) | $ (1,117,726) | $ (482,370) |
Source: Item 9 — 01. Financial Statements and Exhibits. (FDD pages 68–156)
What This Means (2025 FDD)
According to Zoomin Groomin's 2025 Franchise Disclosure Document, the amortization expense for the company in 2023 was $6,000. This figure is part of the company's expenses for that year, which totaled $2,514,627. Amortization is the process of spreading out the cost of an intangible asset over its useful life.
For a prospective franchisee, understanding the franchisor's expenses, including amortization, is crucial for assessing the financial health and stability of the company. Consistent amortization expenses, as seen with Zoomin Groomin's $6,000 expense across 2022, 2023 and 2024, might indicate consistent investments in intangible assets that benefit the franchise system.
It is important to note that while amortization is a non-cash expense, it reflects the consumption of intangible assets that contribute to the company's revenue-generating activities. Reviewing these expenses in the context of the overall financial performance helps potential franchisees evaluate the franchisor's financial management and investment strategies. This information, combined with other financial data, allows for a more informed decision about investing in a Zoomin Groomin franchise.