What is the condition for operating a Zoomin Groomin mobile pet grooming business regarding insurance?
Zoomin_Groomin Franchise · 2025 FDDAnswer from 2025 FDD Document
Note 7: Insurance. You will be required to carry policies covering commercial general liability, auto, and workers compensation. These insurance costs vary by state and can change over time based on your risk management skill.
Additionally, we recommend that you purchase business interruption insurance. You may obtain insurance to cover any risk associated with your activity. All insurance policies must name us as an "additional insured" party.
| Type of Expenditure | Estimated Amount (Low) | Estimated Amount (High) | Method of Payment | When Due | To Whom Payment is to be Made | |
|---|---|---|---|---|---|---|
| Insurance (Note 7) | $2,000 | $3,000 | As Arranged | Before Beginning Operations | Insurance Company |
| Comprehensive General Liability Insurance | $1,000,000 (or more, if state law requires) | Per occurrence |
|---|---|---|
| Commercial Automobile Liability Insurance | $1,000,000 (or more, if state law requires) | Per Occurrence |
| Worker's Compensation | $100,000 (or more, if state law requires) | Per Employee |
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 20–27)
What This Means (2025 FDD)
According to Zoomin Groomin's 2025 Franchise Disclosure Document, franchisees are required to obtain and maintain specific insurance coverage. Item 7 outlines that franchisees must carry policies covering commercial general liability, auto, and workers' compensation. The costs for these insurance policies can vary by state and may change over time based on the franchisee's risk management skills. The estimated initial investment for insurance ranges from $2,000 to $3,000, payable to the insurance company before beginning operations. Zoomin Groomin also recommends purchasing business interruption insurance and allows franchisees to obtain insurance to cover any risk associated with their activity.
Additionally, all insurance policies must name Zoomin Groomin as an "additional insured" party. The specific insurance specifications, as detailed in Item 7, include minimum coverage amounts: $1,000,000 per occurrence for Comprehensive General Liability Insurance (or more if state law requires), $1,000,000 per occurrence for Commercial Automobile Liability Insurance (or more if state law requires), and $100,000 per employee for Worker's Compensation (or more if state law requires).
These insurance requirements are typical in the franchise industry to protect both the franchisee and the franchisor from potential liabilities. Prospective Zoomin Groomin franchisees should factor in these insurance costs when evaluating the overall investment and operational expenses. It is crucial to consult with an insurance professional to determine the specific coverage needed based on their location and business circumstances to ensure full compliance with Zoomin Groomin's requirements and state laws.