What was the equity at December 31, 2024 for Zoomin Groomin?
Zoomin_Groomin Franchise · 2025 FDDAnswer from 2025 FDD Document
32,411 | 33,437 | | Training Expense | 79,407 | 31,004 | - | | Travel Expense | 38,807 | 25,712 | 12,748 | | Van Sales Expense | 13,470 | 6,997 | 1,917 | | Total Expenses | 4,724,595 | 2,514,627 | 687,990 | | Net (Loss) | $ (1,825,281) | $ (1,117,726) | $ (482,370) |
Statements of Changes in Members' Equity For The Three Years Ended December 31, 2024
| Equity at January 1, 2022 | $ (210,886) | |------------------
Source: Item 9 — 01. Financial Statements and Exhibits. (FDD pages 68–156)
What This Means (2025 FDD)
According to Zoomin Groomin's 2025 Franchise Disclosure Document, the equity at December 31, 2024, was reported as a deficit of $3,636,263. This figure is derived from the statement of changes in members' equity. The beginning equity at January 1, 2024, was a deficit of $1,810,982. During the year, there were no member contributions or distributions. The net loss for the year 2024 was $1,825,281, which further decreased the equity.
For a prospective Zoomin Groomin franchisee, this indicates that the company has a significant accumulated deficit. This could be a point of concern, as it reflects the company's past financial performance and its ability to generate profits. While past performance is not indicative of future results, it is important to understand the factors contributing to this deficit and the franchisor's plans to improve its financial position.
It is important to note that the financial health of the franchisor does not directly guarantee the success of a franchisee. However, a stable and profitable franchisor is generally better positioned to provide support, resources, and guidance to its franchisees. Therefore, a prospective franchisee should carefully evaluate the franchisor's financial statements and seek professional advice to assess the potential risks and rewards of investing in a Zoomin Groomin franchise.
In addition to reviewing the franchisor's financial statements, a prospective franchisee should also consider other factors such as the brand's reputation, the level of support provided to franchisees, and the overall market conditions in their target area. By conducting thorough due diligence, a prospective franchisee can make an informed decision about whether to invest in a Zoomin Groomin franchise.