If a Zoomin Groomin franchisee transfers their bank account, how quickly must they notify Zoomin Groomin?
Zoomin_Groomin Franchise · 2025 FDDAnswer from 2025 FDD Document
The Royalty Fees are paid by Electronic Funds Transfer. If you change your bank account or transfer your account to a different bank, you must notify us within one day, and sign and deliver to us and the bank new documents to permit us to debit your bank account within three days. We require you to execute an Automatic Bank Draft Authorization and pay most fees to us via ACH electronic funds transfer. See Schedule 2 to the Franchise 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 required to notify Zoomin Groomin within one day if they change their bank account or transfer it to a different bank. Additionally, the franchisee must sign and deliver new documents to Zoomin Groomin and the bank within three days to permit Zoomin Groomin to debit the franchisee's bank account. This requirement is tied to the electronic funds transfer program that Zoomin Groomin franchisees must participate in, which authorizes Zoomin Groomin to use a pre-authorized bank draft system for fee payments.
This immediate notification requirement is crucial because Zoomin Groomin collects Royalty Fees and other payments via Electronic Funds Transfer (EFT). The Royalty Fee is 8% of Gross Revenue, subject to a minimum of $125 per week. Ensuring that Zoomin Groomin has uninterrupted access to the franchisee's bank account is essential for the timely collection of these fees. The FDD specifies that Royalty Fees are payable weekly by EFT from the franchisee's bank account.
The quick notification and documentation requirements protect Zoomin Groomin's revenue stream and maintain consistent payment schedules. Franchisees should be aware of these strict timelines and be prepared to act swiftly if they change their banking arrangements. Failure to comply could result in late fees or other penalties, as outlined elsewhere in the Franchise Agreement.
It is common practice in franchising for franchisors to require electronic funds transfers for royalty and other fee payments. This ensures consistent and timely payments. The specific notification timelines, however, can vary among different franchise systems, so prospective Zoomin Groomin franchisees should take note of these specific requirements.