Does Zoomin Groomin currently derive revenue from required purchases or leases by franchisees?

Revenue from Required Purchases:

We do not currently but reserve the right in the future to derive revenue or other material consideration from required purchases or leases by you.

For the fiscal year ending December 31, 2024, neither we nor our affiliates earned revenue or other material consideration from required purchases or leases by franchisees.

Required Purchases as a Proportion of Costs:

We estimate that required purchases described above will be approximately 60-80% of all purchases and leases by you of goods and services to establish a franchise and approximately 10- 20% of your operating costs.

Supplier Payments to Us:

Designated suppliers may make payments to us from franchisee purchases.

We did not yet receive any supplier rebates for the fiscal year ending December 31, 2024, but we may do so in the future.

Purchasing or Distribution Cooperatives:

We may negotiate purchase arrangements with suppliers, including price terms, for the benefit of our franchisees.

Purchase Arrangements:

We currently have a negotiated purchase arrangement with an approved CRM supplier, which includes discounted pricing terms for the benefit of our franchisees. We have also negotiated a purchase agreement with certain vehicle upfitters, which includes discounted pricing terms for the benefit of our franchisees. Further, we reserve the right in the future to negotiate other purchase arrangements with suppliers, including preferred pricing arrangements, for the benefit of our franchisees.

Material Benefits:

We do not provide material benefits to you based on your purchase of particular products or services or use of particular suppliers.

Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 20–27)