What is the Zoomin Groomin franchisee's obligation regarding Sales, Excise, or Gross Receipts Tax?
Zoomin_Groomin Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| Sales, Excise or | Actual amount incurred | As incurred | You must reimburse |
| Gross | us if we pay any tax | ||
| Receipts | on any fee related to | ||
| Tax | this Agreement. |
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 reimbursing Zoomin Groomin for any Sales, Excise, or Gross Receipts Tax that Zoomin Groomin pays on fees related to the Franchise Agreement. This means that if Zoomin Groomin incurs these taxes on any of the fees franchisees pay, such as royalty fees or advertising fees, the franchisee must cover those tax expenses.
This obligation is listed under Item 6, which details various other fees that franchisees may be required to pay. The table outlines the type of fee, the amount, the due date, and any remarks associated with each fee. For Sales, Excise, or Gross Receipts Tax, the amount is the actual amount incurred, and it is due as incurred.
This arrangement is fairly standard in franchising, as franchisors typically pass on any tax obligations related to franchise fees to the franchisees. It is important for prospective Zoomin Groomin franchisees to factor in these potential tax liabilities when assessing the overall cost of the franchise. Franchisees should maintain accurate records of all fees paid and any associated taxes to ensure compliance and avoid any discrepancies.