When does Zoomin Groomin collect the initial franchise fee from North Dakota franchisees?
Zoomin_Groomin Franchise · 2025 FDDAnswer from 2025 FDD Document
North Dakota requires the Franchisor to defer collection of the Initial Fee until the Franchisor has completed all of their initial obligations owed to North Dakota Franchisees under the Franchise Agreement or other documents and the Franchisee has commenced doing business pursuant to the Franchise Agreement.
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 collection of the initial franchise fee from franchisees in North Dakota is deferred. Specifically, Zoomin Groomin is required to wait until they have completed all of their initial obligations to the North Dakota franchisee as outlined in the Franchise Agreement or other related documents.
This means that Zoomin Groomin cannot collect the initial franchise fee until they have fulfilled all of their pre-opening responsibilities, such as providing training, site selection assistance, and other support services detailed in the franchise agreement. The franchisee must also have commenced business operations before the fee can be collected.
This requirement is specific to North Dakota and is designed to protect franchisees by ensuring that Zoomin Groomin fulfills its obligations before receiving the initial franchise fee. This addendum modifies the standard franchise agreement to comply with North Dakota state law, providing additional protection to franchisees operating in that state.