Does the Zoomin Groomin Franchise Agreement outline any fees related to third-party software?
Zoomin_Groomin Franchise · 2025 FDDAnswer from 2025 FDD Document
You will pay fees to third party software providers, if any, as specified in the Manual.
2.2.Technology Fee
You will pay an ongoing weekly Technology Fee throughout the Term. On the Effective Date, the Technology Fee charged by us is $15 per week. The Technology Fee is not tied to any specific service, but we intend to provide each Franchised Business with an email address, telephone number, and access to a web portal. We reserve the right to increase the Technology Fee during the Term up to a maximum of $30 per week as technology advances and the cost of providing this technology increases.
2.3.Scheduling Tools
You will need a customer relationship management ("CRM") system which includes scheduling functionality to operate your Franchised Business. You must use the CRM provider designated by us during the Term of this Agreement. This CRM technology is not included in the Technology Fee and is not subject to the maximum technology fee amount specified in Section 2.2. As of the Effective Date, you will contract directly with a third-party CRM vendor designated by us for such technology; however, we reserve the right to negotiate an agreement directly with a CRM vendor and pass the actual fee incurred 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.
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, franchisees are required to use a customer relationship management (CRM) system with scheduling functionality, and this CRM is provided by a third-party vendor. Zoomin Groomin franchisees will contract directly with the designated third-party CRM vendor and pay them directly. However, Zoomin Groomin retains the right to negotiate an agreement directly with a CRM vendor and then pass the actual fee incurred onto the franchisee; this fee is referred to as the "CRM Fee".
This CRM Fee is separate from the weekly Technology Fee of $15 (as of the effective date), which franchisees pay to Zoomin Groomin. Zoomin Groomin may increase the Technology Fee during the term up to a maximum of $30 per week as technology advances and the cost of providing the technology increases. The CRM technology costs are not subject to this maximum.
In summary, as a Zoomin Groomin franchisee, you should anticipate paying a weekly Technology Fee to Zoomin Groomin, as well as a separate CRM Fee to either a third-party vendor or directly to Zoomin Groomin, depending on how Zoomin Groomin chooses to structure the CRM agreement. The FDD also states that franchisees will pay fees to third party software providers, if any, as specified in the Manual.