What is the Assistance Fee for a Zoomin Groomin franchise in the event of death or incapacity?
Zoomin_Groomin Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| Assistance | Reimbursement for expenditures | At time of expense | In the event of your |
| Fee | |||
| in the event of | incurred plus 10% of gross | death or incapacity, we | |
| incapacity | revenues | are entitled to | |
| or | |||
| death | reimbursement from you or your estate for any reasonable expenses incurred plus 10% of gross revenues for the period we operate or assist in the operation of the Franchised Business. |
Source: Item 6 — OTHER FEES (FDD pages 16–20)
What This Means (2025 FDD)
According to the 2025 Zoomin Groomin Franchise Disclosure Document, in the event of the franchisee's death or incapacity, Zoomin Groomin is entitled to reimbursement for expenditures incurred while operating or assisting in the operation of the franchised business. This reimbursement includes all reasonable expenses, plus an additional fee of 10% of the gross revenues generated during the period Zoomin Groomin provides assistance. This fee would be paid either by the franchisee or their estate.
This policy ensures that Zoomin Groomin is compensated for the costs and effort involved in maintaining the business during a difficult transition. It also provides a financial incentive for Zoomin Groomin to ensure the continuity of the franchise during such events. The fee covers not only direct costs but also a percentage of the revenue, aligning Zoomin Groomin's interests with the continued success of the business during the transition period.
For a prospective franchisee, this means that in the unfortunate event of death or incapacity, their estate (or they themselves) would be responsible for covering Zoomin Groomin's expenses and the additional 10% of gross revenues. This should be considered as a potential liability when evaluating the financial risks associated with the franchise. It is important to have a clear understanding of what constitutes 'reasonable expenses' and how gross revenues will be calculated in such a scenario. Franchisees should discuss these details with Zoomin Groomin to avoid potential disputes and ensure adequate financial planning.