Are Zoomin Groomin franchisor-owned outlets required to contribute to the Advertising Fund?

According to Zoomin Groomin's 2025 Franchise Disclosure Document, franchisor-owned outlets are not required to contribute to the Advertising Fund. However, they have the option to do so. Franchisees, on the other hand, are required to contribute 2% of their gross revenues to the Advertising Fund. This fund is used by Zoomin Groomin to advise franchisees on advertising and to conduct advertising themselves through various channels, including online, radio, television, and direct mail. Zoomin Groomin has the discretion to use the advertising fees to solicit new franchise sales.

The Advertising Fund is administered by Zoomin Groomin, and it is not audited. However, Zoomin Groomin will provide unaudited financial statements of the Advertising Fund to franchisees upon written request. Any unspent advertising fees in a fiscal year may be carried over and applied to the next fiscal year. This means that the funds collected from franchisees are intended to be reinvested in advertising and promotion, although the franchisor has significant control over how these funds are spent.

For a prospective franchisee, this means that while they must contribute a percentage of their revenue to the Advertising Fund, franchisor-owned outlets do not face the same requirement. This could create a perception of unequal burden, as franchisees are mandated to contribute while company-owned stores have the option. It's important for potential franchisees to understand how the advertising funds are managed and how they benefit all outlets, including franchised locations, despite the different contribution requirements.