What is the Zoomin Groomin franchisee's obligation regarding customer complaints?
Zoomin_Groomin Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| Royalty Fee (Notes 1) | The Royalty Fee rate is 8% on Gross Revenue subject to a minimum Royalty Fee of $125 per week (the "Minimum Weekly Royalty Fee"). | Payable Weekly by electronic funds transfer ("EFT") from your Bank Account. | Revenues from the Franchised Business. |
| Advertising | Advertising Fund Contribution is 2% of previous week's Gross Revenue. | Payable weekly | Local, regional, or national advertising and support to promote the brand. |
| Fund | |||
| Technology Fee (Note 2) | Our then current fee up to $30 per week (presently, $10 per week) | Weekly in the same manner as the Royalty Fee | Payable to us |
| CRM Fee (Note 3) | The then-current fee charged by third party vendor (presently, $69.00 per month) | Payable monthly | Payable to third parties, but we reserve the right to collect this fee from you. |
| Insurance (Note 4) | Varies by state Δs inclirred | Payable to third parties. | |
| Additional | ace $0 As incurred | A fee is only charged if you request non-standard assistance. | |
| Assistance | |||
| (Note 5) | |||
| Late Fees | Lesser of 1% per month or the highest rate allowable by law of the state where you are located. | As incurred | Apply to amounts owed to us that are five (5) days past due. |
| Credit Card | hy third-narty credit card As incurred | Payable if you elect to pay any sums to us by credit card. | |
| Processing Fee | |||
| Transfer Fee (Note 6) | $5,000 | Payable at closing | |
| Third Party | At cost | As incurred | You agree to reimburse us for any third-party charges we incur on your behalf. |
| Charges | |||
| Type of Fee | Amount | Due Date | Remarks |
| Client Refunds | Actual amount incurred | Upon demand | You must pay us any amounts we pay to resolve customer/client concerns or complaints. |
| Audit Fee | Cost of audit plus $50 late fee per month on any late payment | Upon demand | 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. |
Source: Item 6 — OTHER FEES (FDD pages 16–20)
What This Means (2025 FDD)
According to Zoomin Groomin's 2025 Franchise Disclosure Document, franchisees are responsible for addressing customer complaints and concerns. Specifically, Zoomin Groomin franchisees must pay the franchisor any amounts that Zoomin Groomin pays to resolve these customer issues. This means that if a customer has a legitimate complaint and Zoomin Groomin provides a refund or other compensation to that customer, the franchisee is obligated to reimburse Zoomin Groomin for the amount of that refund or compensation. This obligation is listed under "Client Refunds" in the table of other fees.
This policy places the financial burden of customer service resolution directly on the franchisee. It incentivizes franchisees to provide excellent service and handle complaints effectively at their level to minimize the chances of Zoomin Groomin needing to intervene and provide compensation. The "Client Refunds" are due upon demand, meaning Zoomin Groomin can request immediate reimbursement for any amounts paid to resolve customer issues.
Franchisees should be aware that the actual amount incurred for client refunds can vary depending on the nature and severity of customer complaints. It is important for prospective franchisees to factor in potential client refunds when assessing the financial viability of a Zoomin Groomin franchise. Maintaining high service standards and proactively addressing customer concerns can help minimize these costs and protect the franchisee's bottom line.
This type of arrangement, where franchisees bear the cost of customer refunds, is not uncommon in the franchise industry, particularly in service-oriented businesses. It aligns the franchisee's interests with those of the franchisor in maintaining customer satisfaction and protecting the brand's reputation.