What is the cost to a Zoomin Groomin franchisee for third-party charges incurred on their behalf?
Zoomin_Groomin Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| Third Party | At cost | As incurred | You agree to reimburse us for any third-party charges we incur on your behalf. |
| Charges |
Source: Item 6 — OTHER FEES (FDD pages 16–20)
What This Means (2025 FDD)
According to Zoomin Groomin's 2025 Franchise Disclosure Document, franchisees must reimburse Zoomin Groomin for any third-party charges the company incurs on the franchisee's behalf. The FDD specifies that the cost will be 'at cost' and is due 'as incurred.' This means a franchisee will only pay the actual amount Zoomin Groomin paid to the third party, and payment is due when the charge is incurred.
Several other fees are payable to third parties. For example, the CRM Fee is the then-current fee charged by the third-party vendor, presently $69.00 per month. Franchisees are also responsible for insurance costs, which vary by state and can change over time based on risk management skill. If a franchisee does not pay the CRM fee when due, Zoomin Groomin has the right to pay the fee on the franchisee's behalf and collect it from them.
This arrangement means that franchisees need to be prepared to cover these potential third-party costs as they arise. It is important for prospective franchisees to understand what types of third-party charges Zoomin Groomin might incur on their behalf and to factor these potential costs into their financial planning. Understanding the nature and frequency of these charges is crucial for managing cash flow and ensuring the financial stability of the franchise.