What was the amount due from affiliates to Zoomin Groomin in 2024?
Zoomin_Groomin Franchise · 2025 FDDAnswer from 2025 FDD Document
r, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about Zoomin Groomin USA LLC's ability to continue as a going concern for a reasonable period of time.
We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control related matters the auditor identified during the audit.
DASH Business Solutions, LLC
DASH Business Solutions, LLC Royal Palm Beach, FL April 4, 2025
Balance Sheets December 31
| | 2024 | 2023 | 2022 | |--------------------------
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 amount due from affiliates to Zoomin Groomin in 2024 was $4,819,061. This figure represents the balance of transactions between Zoomin Groomin and its related entities, such as subsidiaries or parent companies. These transactions can include loans, services, or other financial arrangements.
For a prospective franchisee, a large 'Due From Affiliates' balance could indicate the franchisor has significant financial interactions with its affiliates. It's important to understand the nature of these transactions and their potential impact on Zoomin Groomin's financial stability. A franchisee should investigate whether these affiliate transactions are recurring and if they affect the franchisor's ability to support its franchisees.
It is also useful to compare this figure with previous years. In 2023, the amount due from affiliates was $2,429,123, and in 2022, it was $176,000. The significant increase in 2024 suggests a change in the financial relationship between Zoomin Groomin and its affiliates. A potential franchisee should seek clarification from Zoomin Groomin regarding the reasons for this increase and its implications for the franchise system.
Understanding the financial health and inter-company transactions of the franchisor is crucial for making an informed investment decision. Prospective franchisees should consult with a financial advisor to assess the risks and opportunities associated with this aspect of Zoomin Groomin's financial statements.