What is the definition of 'Gross Revenues' for Zoomin Groomin franchisees?
Zoomin_Groomin Franchise · 2025 FDDAnswer from 2025 FDD Document
The preceding data was extracted from reports submitted to us by our franchisees as Gross Revenues. "Gross Revenues" means the total of all income arising from the operation of a Vehicle net of any tax, adjustment, credit, or refund.
Source: Item 19 — FINANCIAL PERFORMANCE REPRESENTATIONS (FDD pages 41–48)
What This Means (2025 FDD)
According to Zoomin Groomin's 2025 Franchise Disclosure Document, Gross Revenues are defined as the total income from operating a Zoomin Groomin vehicle, net of any tax, adjustment, credit, or refund. This is a standard definition used in franchising to calculate royalties and assess a franchisee's financial performance.
For a prospective Zoomin Groomin franchisee, understanding this definition is crucial because it directly impacts royalty payments and overall profitability. Royalties are typically calculated as a percentage of gross revenues, so accurately tracking and reporting all income is essential. Additionally, the financial performance representations provided by Zoomin Groomin are based on this definition, allowing franchisees to benchmark their performance against existing operators.
It's important to note that the definition specifically excludes taxes, adjustments, credits, and refunds from the gross revenue calculation. This means that franchisees only pay royalties on the net income generated by their Zoomin Groomin vehicle. Franchisees should maintain detailed records of all transactions to ensure accurate reporting and compliance with the franchise agreement. Written substantiation of this financial performance representation will be made available to you upon reasonable request.