What was the equity at January 1, 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 January 1, 2024, was reported as $(1,810,982). This figure is derived from the company's financial statements, which are audited by an independent auditor. The auditor's report indicates that the financial statements present fairly the financial position of Zoomin Groomin USA LLC as of December 31, 2024.
The equity figure is a critical indicator of the company's financial health. It represents the owner's stake in the company, calculated as assets minus liabilities. A negative equity, as is the case here, suggests that the company's liabilities exceed its assets at that point in time. This can be a point of concern for potential franchisees, as it may indicate financial instability or heavy reliance on debt.
Prospective franchisees should carefully review the complete financial statements and notes within Item 9 of the FDD. Understanding the trends in equity over the three years presented (2022-2024) and the factors contributing to the net losses is essential. It would be prudent to seek professional financial advice to fully assess the implications of the negative equity and its potential impact on the franchisor's ability to support its franchisees. Furthermore, franchisees should inquire about the franchisor's plans to improve its financial position and ensure long-term sustainability.