What is the dependency between the initial training and the minimum weekly royalty fee for Zoomin Groomin?
Zoomin_Groomin Franchise · 2025 FDDAnswer from 2025 FDD Document
hird 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.
Note 2: Technology Fee. Pricing for the Technology Fee is set by us and is not calculated based on the precise price of any specific service; however, it is intended to reimburse us for expenses we reasonably incur in providing each franchisee with an e-mail address for their Franchised Business, and our expenses incurred in creating and maintaining certain web-based systems that serve as a resource for our franchises. We will use commercially reasonable judgment in setting this price.
Source: Item 6 — OTHER FEES (FDD pages 16–20)
What This Means (2025 FDD)
According to Zoomin Groomin's 2025 Franchise Disclosure Document, the obligation to pay the royalty fee begins immediately upon signing the Franchise Agreement. However, the Minimum Weekly Royalty Fee becomes effective later. Specifically, it starts on the thirteenth week after whichever comes first: the day you complete initial training or the day you begin operations.
This means that even if a Zoomin Groomin franchisee hasn't started operations, they will be subject to the Minimum Weekly Royalty Fee 13 weeks after completing initial training. Conversely, if a franchisee starts operations before completing initial training, the Minimum Weekly Royalty Fee kicks in 13 weeks after the start of operations. This ensures that Zoomin Groomin begins collecting the minimum royalty within a reasonable timeframe, regardless of when training is completed or operations commence.
The Royalty Fee is 8% on Gross Revenue subject to a minimum Royalty Fee of $125 per week. This fee is collected weekly via electronic funds transfer. The royalty is based on gross revenues, which include all receipts (cash, credit, checks, bitcoin, etc.) after taxes, adjustments, credits, and allowances. Franchisees must submit a Gross Revenue report by 5:00 p.m. every Tuesday for the prior week's activity, with the week ending on Saturday at midnight.