Who imposed the deferral requirement for the Zoomin Groomin initial franchise fee?
Zoomin_Groomin Franchise · 2025 FDDAnswer from 2025 FDD Document
Payment of the initial franchise fee shall be deferred until Franchisor has satisfied its preopening obligations to Franchisee and Franchisee has commenced doing business. The Illinois Attorney General's Office imposed this deferral requirement due to Franchisor's financial condition.
MARYLAND ADDENDUM TO THE DISCLOSURE DOCUMENT
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 the 2025 Zoomin Groomin Franchise Disclosure Document, the requirement to defer the initial franchise fee is imposed by different state authorities depending on the location of the franchise. In Illinois, the Illinois Attorney General's Office mandates the deferral due to Zoomin Groomin's financial condition. This means franchisees in Illinois will not pay the initial fee until Zoomin Groomin has met its pre-opening obligations and the franchisee has started business operations.
In California, the Department of Financial Protection and Innovation requires Zoomin Groomin to defer the collection of all initial fees from franchisees until Zoomin Groomin has completed all its pre-opening obligations and the franchisee is open for business. Similarly, the Minnesota Department of Commerce requires Zoomin Groomin to defer payment of the initial franchise fee until the franchisee has opened their Zoomin Groomin business.
In Maryland, the Maryland Securities Commissioner requires a financial assurance based upon Zoomin Groomin's financial condition, leading to the deferral of all initial fees and payments until Zoomin Groomin completes its pre-opening obligations. The Virginia State Corporation Commission's Division of Securities and Retail Franchising also requires Zoomin Groomin to defer payment of the initial franchise fee and other initial payments until it has completed its pre-opening obligations under the franchise agreement. Finally, North Dakota requires Zoomin Groomin to defer collection of the Initial Fee until Zoomin Groomin has completed all of their initial obligations owed to North Dakota Franchisees under the Franchise Agreement or other documents and the Franchisee has commenced doing business pursuant to the Franchise Agreement.
These deferral requirements provide a degree of financial protection for new Zoomin Groomin franchisees, ensuring that the franchisor fulfills its initial obligations before receiving the initial franchise fee. Prospective franchisees should confirm with Zoomin Groomin which specific requirements apply to their state and fully understand the conditions under which the initial fee becomes due.