Does the Zoomin Groomin Franchise Agreement address credit card fees?
Zoomin_Groomin Franchise · 2025 FDDAnswer from 2025 FDD Document
Cash equivalents include all highly liquid investments with maturities of three months or less at the date of purchase. Also included with cash equivalents are deposits in-transit from banks for payments related to third-party credit card and debit card transactions.
Source: Item 9 — 01. Financial Statements and Exhibits. (FDD pages 68–156)
What This Means (2025 FDD)
Based on the 2025 Franchise Disclosure Document, the Zoomin Groomin Franchise Agreement does not explicitly detail who is responsible for covering credit card fees. However, the document does mention that the company's accounting policies include deposits in-transit from banks for payments related to third-party credit card and debit card transactions. This indicates that Zoomin Groomin acknowledges the use of credit card transactions within the business model.
While the FDD acknowledges credit card transactions, it does not specify whether the franchisee or the franchisor is responsible for covering the associated fees. This is a common expense for businesses that accept credit card payments, and the responsibility for these fees can vary among franchise systems. Some franchisors may absorb these costs, while others pass them on to the franchisee.
Prospective Zoomin Groomin franchisees should seek clarification from the franchisor regarding credit card processing fees. Understanding who bears the responsibility for these fees is essential for accurately projecting operating expenses and assessing the overall profitability of the franchise. It would be prudent to inquire about the typical percentage of sales paid in credit card fees and whether Zoomin Groomin has negotiated any preferred rates with payment processors that franchisees can leverage.
In summary, while the Zoomin Groomin FDD mentions credit card transactions, it lacks specific details regarding the allocation of credit card processing fees. A prospective franchisee should directly address this question with Zoomin Groomin to gain a comprehensive understanding of the financial obligations associated with operating a franchise.