What factors can cause the insurance costs for a Zoomin Groomin franchise to change?

According to Zoomin Groomin's 2025 Franchise Disclosure Document, several factors can influence the insurance costs for a franchisee. The initial investment table in Item 7 estimates insurance costs to be between $2,000 and $3,000, payable before operations begin to an insurance company. Note 7 of Item 7 states that these costs can vary by state. Therefore, a Zoomin Groomin franchise operating in a state with higher insurance requirements or premiums may face higher costs.

Furthermore, the FDD indicates that insurance costs can change over time based on a franchisee's risk management skill. This suggests that franchisees who effectively manage and mitigate risks in their daily operations may experience lower insurance premiums over time. Conversely, poor risk management could lead to increased premiums.

Zoomin Groomin requires franchisees to carry commercial general liability, auto, and workers' compensation insurance. The specific coverage amounts required are detailed in Item 7, with minimums of $1,000,000 per occurrence for both Comprehensive General Liability and Commercial Automobile Liability Insurance. Worker's Compensation requires $100,000 per employee, or more if state law requires. Franchisees should regularly review their insurance policies and risk management practices to ensure they maintain adequate coverage while optimizing costs.