For Zoomin Groomin franchisees in Virginia, what pre-opening obligations must Zoomin Groomin complete before receiving the initial franchise fee?
Zoomin_Groomin Franchise · 2025 FDDAnswer from 2025 FDD Document
Item 5 of the Disclosure Document is modified to also provide: "The Virginia State Corporation Commission's Division of Securities and Retail Franchising requires us to defer payment of the initial franchise fee and other initial payments owed by franchisees to the franchisor until the franchisor has completed its pre-opening obligations under the franchise agreement."
Source: Item 17 — g. of the Disclosure Document is modified to state that, in addition to the grounds for immediate termination specified in Item 17.h., the franchisor can terminate upon written notice and a 60 day opportunity to cure for a breach of the Franchise Agreement. (FDD pages 51–65)
What This Means (2025 FDD)
According to Zoomin Groomin's 2025 Franchise Disclosure Document, the Virginia State Corporation Commission's Division of Securities and Retail Franchising mandates that Zoomin Groomin must complete all pre-opening obligations outlined in the franchise agreement before they can collect the initial franchise fee and other initial payments from franchisees in Virginia. This requirement ensures that Zoomin Groomin fulfills its commitments to support the franchisee in setting up their business before receiving payment.
This deferral of the initial franchise fee provides a level of protection for new Zoomin Groomin franchisees in Virginia. It ensures that franchisees are not paying the initial fee upfront without receiving the necessary support and services from Zoomin Groomin to get their business operational. This can significantly reduce the financial risk for franchisees, as they are only required to pay the fee once Zoomin Groomin has met its obligations.
In practical terms, a prospective Zoomin Groomin franchisee in Virginia should carefully review the franchise agreement to understand exactly what constitutes Zoomin Groomin's pre-opening obligations. They should also confirm with Zoomin Groomin that all these obligations have been met before making any initial franchise fee payments. This requirement is specific to Virginia due to the state's franchise laws, and it is designed to protect franchisees from potential issues related to franchisor performance during the initial setup phase.