Does the Zoomin Groomin Franchise Agreement outline any fees related to third-party charges?
Zoomin_Groomin Franchise · 2025 FDDAnswer from 2025 FDD Document
goods or services may be subject to sales, excise, gross receipts or similar type tax, which you will pay to us at the same time and in the same manner as you pay these fees to us.
2.6.Third Party Software Fees
You will pay fees to third party software providers, if any, as specified in the Manual.
2.7.On-Site Training Fee
If we provide on-site services at your request, then you will pay to us for travel and living expenses for our staff to travel to you.
2.8.Annual Convention
Either you or your General Manager must attend the Annual Convention. While there will be no admission fee, you are responsible for any travel related expenditures such as lodging, meals, and transportation.
2.9.Third Party Charges
If we incur third party charges on your behalf, you will reimburse us for any such charges.
2.10. Transfer Fee
You will pay to us a Transfer Fee of $5,000 if you wish to transfer ownership of the rights under this Agreement, or a majority of the ownership of this Agreement or in an entity holding this Agreement.
2.11. Client Refunds
If you do not resolve a Client service complaint and we believe a reasonable basis exists for a refund to the Client all or a portion of the Client's fees, we may pay the Client directly. We will charge you for the settlement and you will reimburse us within the next normal payment cycle.
2.12. Audit Fee
You will pay to us our cost in performing an audit of your Franchise Business plus a Late Fee of $50 per month on any late payment found through such audit if the audit discloses an under reporting of Gross Revenues or underpayment to us by 5% or more.
2.13. Payment Terms
Recurring fees, including Royalty payments, and reports must be submitted by Tuesday each week. We will provide an invoice to you for other fees incurred. Payment is due upon receipt and will be paid by automatic electronic funds transfer.
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 Franchise Agreement does address fees related to third-party charges. Specifically, if Zoomin Groomin incurs third-party charges on behalf of a franchisee, the franchisee is responsible for reimbursing Zoomin Groomin for those charges. Additionally, franchisees will pay fees to third-party software providers, if any, as specified in the Manual.
Furthermore, franchisees are required to use a customer relationship management (CRM) system with scheduling functionality and must use the CRM provider designated by Zoomin Groomin. While this CRM technology is not included in the weekly Technology Fee, Zoomin Groomin reserves the right to negotiate an agreement directly with a CRM vendor and pass the actual fee incurred onto the franchisee, referring to this fee as the "CRM Fee".
In addition to the CRM Fee, the franchisee may also incur costs for travel and living expenses if they request on-site services from Zoomin Groomin, as they will be responsible for covering these expenses for Zoomin Groomin's staff. While there is no admission fee for the Annual Convention, the franchisee (or their General Manager) is responsible for any travel-related expenditures such as lodging, meals, and transportation.
Finally, if a franchisee does not resolve a client service complaint and Zoomin Groomin believes a refund is warranted, Zoomin Groomin may pay the client directly and charge the franchisee for the settlement, which the franchisee must reimburse within the next normal payment cycle. Understanding these potential third-party charges is crucial for prospective franchisees to accurately budget and manage their business expenses.