How does the Zoomin Groomin Franchise Agreement define the royalty fee?
Zoomin_Groomin Franchise · 2025 FDDAnswer from 2025 FDD Document
red by us onto you. We will refer to this fee as the "CRM Fee". If we contract directly with a CRM vendor for CRM technology, you will pay such CRM Fee to us separate and apart from the Technology Fee to us and in the manner we designate.
2.4.Royalty Fee
You will pay to us a Royalty Fee of 8% of Gross Revenues on a weekly basis by electronic funds transfer. Your obligation to pay the Royalty Fee begins immediately upon execution of this Agreement and is subject to a minimum amount of $125 per week (the "Minimum Weekly Royalty Fee").
During the Initial Term, the Minimum Weekly Royalty Fee will begin the thirteenth (13th) week immediately following the earlier of (a) the day you complete Initial Training or (b) the day you begin operations, whichever occurs first. During a Renewal Term, the Minimum Weekly Royalty Fee will commence immediately.
"Gross Revenues" means the total of all receipts whether cash, credit, checks, bitcoin, or other means of exchange net of any tax, adjustments, credits and allowances actually made in accordance with the Operations Manual. Even though we reserve the right to access your computer system to download sales information, you must provide us with the required Gross Revenue report every Tuesday prior to 5:00 p.m. EST, or such other time as we designate, for the prior week's activity. The end of each week for Royalty collection purposes is Saturday at midnight.
Source: Item 9 — 01. Financial Statements and Exhibits. (FDD pages 68–156)
What This Means (2025 FDD)
According to the 2025 Zoomin Groomin Franchise Disclosure Document, the royalty fee is defined as 8% of Gross Revenues, payable weekly via electronic funds transfer. This obligation starts immediately upon the execution of the Franchise Agreement. In addition to the percentage, there is also a Minimum Weekly Royalty Fee of $125.
The Minimum Weekly Royalty Fee is subject to a waiting period during the Initial Term, commencing on the thirteenth week after the earlier of completing Initial Training or beginning operations. However, this waiting period does not apply during a Renewal Term, where the Minimum Weekly Royalty Fee starts immediately.
Gross Revenues are defined as the total of all receipts, whether in cash, credit, checks, bitcoin, or other means of exchange, net of any tax, adjustments, credits, and allowances made according to the Operations Manual. Franchisees must provide a Gross Revenue report every Tuesday prior to 5:00 p.m. EST for the prior week's activity, even though Zoomin Groomin reserves the right to access the franchisee's computer system to download sales information. If a franchisee operates more than one vehicle, the Gross Revenue Report must be reported on a per-Vehicle basis.