When is the Audit Fee payable to Zoomin Groomin?
Zoomin_Groomin Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| Audit Fee | Cost of audit plus $50 late fee per month on any late payment | Upon demand | You will pay to us our cost in performing an audit of your Franchise Business plus a Late Fee of $50 per month on any late payment found through such audit if the audit discloses an under reporting of Gross Revenues or underpayment to us by 5% or more. |
Source: Item 6 — OTHER FEES (FDD pages 16–20)
What This Means (2025 FDD)
According to Zoomin Groomin's 2025 Franchise Disclosure Document, the Audit Fee is payable upon demand. This means that Zoomin Groomin can request payment for the audit at any time after the audit has been conducted. The fee covers the cost of the audit itself, plus a $50 late fee per month for any late payment.
Zoomin Groomin will conduct an audit of a franchisee's business if they suspect underreporting of gross revenues or underpayment of fees. If the audit reveals an underreporting or underpayment of 5% or more, the franchisee is responsible for covering the audit costs. This policy incentivizes franchisees to accurately report their financial information and pay all due fees promptly.
Prospective Zoomin Groomin franchisees should be aware of the conditions that trigger an audit and the associated costs. Maintaining accurate records and ensuring timely payments are crucial to avoid incurring these fees. It is also important to understand what constitutes "Gross Revenues" as defined in the Franchise Agreement, as this figure is the basis for calculating several fees payable to Zoomin Groomin.