What was the equity at January 1, 2022 for Zoomin Groomin?
Zoomin_Groomin Franchise · 2025 FDDAnswer from 2025 FDD Document
| 2024 | 2023 | 2022 | |
|---|---|---|---|
| Revenues | |||
| Franchise Fees | $ 496,101 | $ 260,076 | $ 24,545 |
| Marketing & Technology Revenue | 383,043 | 103,849 | 10,059 |
| Area Rep Sales Revenue | 485,389 | 484,754 | 55,248 |
| Royalty Revenue | 1,420,950 | 376,630 | 92,640 |
| Other Income | 40,000 | 113,749 | - |
| Interest Income | 73,831 | 57,843 | 23,128 |
| Total Revenues | 2,899,314 | 1,396,901 | 205,620 |
| Expenses | |||
| Advertising and Marketing | 919,283 | 280,833 | 96,532 |
| Amortization Expense | 6,000 | 6,000 | 6,000 |
| Area Rep Expense | 1,658,376 | 568,628 | 74,059 |
| Commissions and Consulting | 167,473 | 198,260 | 9,750 |
| Contract Labor | 48,517 | 4,025 | 3,750 |
| Filing Fees | 8,569 | 7,905 | 5,951 |
| Insurance Expense | 7,492 | 5,368 | 4,203 |
| Lease Expense | 27,258 | - | - |
| Legal and Professional | 68,861 | 12,145 | 10,294 |
| Licenses & Fees | 175 | 601 | 535 |
| Meal Expense | 11,695 | 10,425 | 5,372 |
| Meeting Expense | 832 | 2,027 | 10,737 |
| Office Expense | 18,731 | 6,775 | 10,885 |
| Overhead - Corporate | 634,593 | 394,933 | 118,779 |
| Overhead - Marketing & Sales | 662,427 | 743,021 | 205,038 |
| Payroll Taxes | 22,435 | 12,267 | 5,191 |
| Postage and Shipping | 3,622 | 1,810 | 1,463 |
| Salaries and Wages | 296,420 | 163,480 | 71,349 |
| Technology Expense | 30,152 |
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 January 1, 2022, was a deficit of $(210,886). This means that at the beginning of 2022, Zoomin Groomin's liabilities exceeded its assets by this amount.
This financial information is crucial for prospective franchisees as it provides a snapshot of the company's financial health at that specific point in time. Equity is a key indicator of a company's net worth and its ability to meet its financial obligations. A negative equity, as seen here, suggests that the company had more debt than assets at that time.
It is important to note that this is just one data point, and the company's financial situation may have changed since then. The FDD includes additional financial statements that show the progression of Zoomin Groomin's equity over the following years, with equity at December 31, 2022 at $(693,256). Reviewing these trends can provide a more comprehensive understanding of the company's financial trajectory.
A prospective franchisee should carefully analyze these figures, along with other financial statements and disclosures in the FDD, and consult with a financial advisor to assess the potential risks and rewards of investing in a Zoomin Groomin franchise.