What expenses is the Zoomin Groomin Technology Fee intended to reimburse?
Zoomin_Groomin Franchise · 2025 FDDAnswer from 2025 FDD Document
er. 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. We reserve the right to increase this fee as reasonably required by us as technology advances and the cost of providing this technology increases up to a maximum Technology Fee of $30 per week. T
Source: Item 6 — OTHER FEES (FDD pages 16–20)
What This Means (2025 FDD)
According to Zoomin Groomin's 2025 Franchise Disclosure Document, the Technology Fee is intended to reimburse Zoomin Groomin for specific technology-related expenses. While the fee's pricing isn't directly tied to the cost of any single service, it's designed to cover the expenses Zoomin Groomin incurs to provide franchisees with an email address for their franchised business. Additionally, it covers the costs associated with creating and maintaining web-based systems that serve as resources for the franchises. Currently, this fee is $10 per week, but Zoomin Groomin retains the right to increase it up to a maximum of $30 per week as technology advances and costs increase. This fee is separate from the CRM Fee, which covers the cost of the customer relationship management system.
Zoomin Groomin uses commercially reasonable judgment in setting the price of the Technology Fee. This means that while the fee isn't directly calculated based on the cost of specific services, Zoomin Groomin aims to ensure that the fee reflects the actual expenses they incur in providing the technology resources to franchisees. The Technology Fee is payable weekly in the same manner as the Royalty Fee.
For a prospective franchisee, it's important to understand that the Technology Fee is a recurring expense that contributes to the overall cost of operating a Zoomin Groomin franchise. While the current fee is $10 per week, franchisees should be prepared for potential increases in the future, up to the maximum of $30 per week. It is also important to note that this fee is in addition to the CRM fee, which is currently $69 per month. Franchisees should factor these technology-related costs into their financial projections and business plans.