What condition must the Zoomin Groomin franchisee meet before the initial franchise fee is due?
Zoomin_Groomin Franchise · 2025 FDDAnswer from 2025 FDD Document
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- Also, a court will determine if a bond is required.
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- The Limitations of Claims section must comply with Minnesota Statutes, Section 80C.17, Subd. 5.
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- No statement, questionnaire, or acknowledgment signed or agreed to by a franchisee in connection with the commencement of the franchise relationship shall have the effect of (i) waiving any claims under any applicable state franchise law, including fraud in the inducement, or (ii) disclaiming reliance on any statement made by any franchisor, franchise seller, or other person acting on behalf of the franchisor. This provision supersedes any other term of any document executed in connection with the franchise.
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- Initial Fee Deferral: Franchisor defers the collection of the Initial Fee until the opening of the franchised business. Items 5 and Item 7 are amended to also provide: "The Minnesota Department of Commerce requires us to defer payment of the initial franchise fee owed by franchisees to the franchisor until the franchisee has opened the franchised business."
NEW YORK ADDENDUM TO THE DISCLOSURE DOCUMENT
As to franchises governed by the New York franchise laws, if any of the terms of the Disclosure Document are inconsistent with the terms below, the terms below control.
- The following information is added to the cover page of the Franchise Disclosure Document:
**INFORMATION COMPARING FRANCHISORS IS AVAILABLE. CALL THE STATE ADMINISTRATORS LISTED IN EXHIBIT C OR YOUR PUBLIC LIBRARY FOR SERVICES OR INFORMATION. REGISTRATION OF THIS FRANCHISE BY NEW YORK STATE DOES NOT MEAN THAT NEW YORK STATE RECOMMENDS IT OR HAS VERIFIED THE INFORMATION IN THIS FRANCHISE DISCLOSURE DOCUMENT.
Source: Item 17 — g. of the Disclosure Document is modified to state that, in addition to the grounds for immediate termination specified in Item 17.h., the franchisor can terminate upon written notice and a 60 day opportunity to cure for a breach of the Franchise Agreement. (FDD pages 51–65)
What This Means (2025 FDD)
According to Zoomin Groomin's 2025 Franchise Disclosure Document, the payment terms for the initial franchise fee are not uniform across all states and depend on specific state regulations. In several states, Zoomin Groomin defers the collection of the initial franchise fee until certain conditions are met.
For franchisees in Minnesota, the franchisor defers the collection of the initial fee until the opening of the franchised business. Similarly, Virginia requires Zoomin Groomin to defer payment of the initial franchise fee and other initial payments until the franchisor has completed its pre-opening obligations under the franchise agreement. In Illinois, payment of the initial franchise fee is deferred until Zoomin Groomin has satisfied its preopening obligations to the franchisee and the franchisee has commenced doing business. The Illinois Attorney General's Office imposed this deferral requirement due to Zoomin Groomin's financial condition.
In North Dakota, Zoomin Groomin must defer collection of the initial fee until they have 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. For California franchisees, the Department of Financial Protection and Innovation requires that Zoomin Groomin defer the collection of all initial fees until the franchisor has completed all its pre-opening obligations and the franchisee is open for business.
These deferral requirements provide some financial protection to new Zoomin Groomin franchisees, ensuring that they do not pay the initial franchise fee until certain milestones are achieved, such as the completion of pre-opening obligations or the actual opening of the business. Prospective franchisees should carefully review the addendum specific to their state to understand the exact conditions for the initial fee deferral.