What is the dependency between the bank account and the electronic funds transfer for Zoomin Groomin royalty payments?
Zoomin_Groomin Franchise · 2025 FDDAnswer from 2025 FDD Document
ess otherwise noted and are nonrefundable. You must participate in our electronic funds transfer program, which authorizes us to utilize a pre-authorized bank draft system. Fees payable to approved suppliers are subject to change during the term of the Franchise Agreement. These changes are not within our control. Fees paid to a third party may be refundable, depending upon the arrangement and contracts, if any, made between such third party and the franchisee.
NOTES:
Note 1: Royalty Fee. Your obligation to pay the Royalty Fee will commence immediately upon execution of a Franchise Agreement. This fee is subject to the Minimum Weekly Royalty Fee beginning the thirteenth week immediately following the earlier of (a) the day you complete Initial Training or (b) the day you begin operations, whichever occurs first.
The Royalty Fee is calculated based upon Gross Revenues. "Gross Revenues" means the total of all receipts whether cash, credit, checks, bitcoin, or other means of exchange net of any tax, adjustments, credits and allowances actually made in accordance with the Operations Manual. Even though we reserve the right to access your computer system to download sales information, you must provide us with the required Gross Revenue report by 5:00 p.m. every Tuesday for the prior week's activity. The end of each week for Royalty collection purposes is Saturday at midnight.
The Royalty Fees are paid by Electronic Funds Transfer. If you change your bank account or transfer your account to a different bank, you must notify us within one day, and sign and deliver to us and the bank new documents to permit us to debit your bank account within three days. We require you to execute an Automatic Bank Draft Authorization and pay most fees to us via ACH electronic funds transfer. See Schedule 2 to the Franchise Agreement.
Source: Item 6 — OTHER FEES (FDD pages 16–20)
What This Means (2025 FDD)
According to Zoomin Groomin's 2025 Franchise Disclosure Document, participation in the electronic funds transfer (EFT) program is mandatory for franchisees. Zoomin Groomin is authorized to use a pre-authorized bank draft system to collect fees. Specifically, the royalty fee, which is 8% of gross revenue subject to a minimum of $125 per week, is payable weekly via EFT from the franchisee's bank account. The technology fee, up to $30 per week, is also collected weekly in the same manner as the royalty fee.
If a Zoomin Groomin franchisee changes their bank account or transfers it to a different bank, they must notify Zoomin Groomin within one day. Additionally, the franchisee must sign and deliver new documents to Zoomin Groomin and the bank within three days to allow Zoomin Groomin to continue debiting the account. This ensures that Zoomin Groomin can continue to collect royalty and other fees without interruption.
Zoomin Groomin requires franchisees to execute an Automatic Bank Draft Authorization, which allows them to pay most fees via ACH electronic funds transfer. This requirement is further detailed in Schedule 2 of the Franchise Agreement. The use of EFT ensures timely and consistent payments to Zoomin Groomin, while also placing the responsibility on the franchisee to maintain accurate and up-to-date banking information to avoid any disruptions in the payment process.