What was the increase or decrease in inventory for Zoomin Groomin in 2024?
Zoomin_Groomin Franchise · 2025 FDDAnswer from 2025 FDD Document
-----| | Member Contributions | - | | Member Distributions | - | | Net Income (Loss) | (482,370) | | Equity at December 31, 2022 | $ (693,256) | | Equity at January 1, 2023 | $ (693,256) | | Member Contributions | - | | Member Distributions | - | | Net Income (Loss) | (1,117,726) | | Equity at December 31, 2023 | $ (1,810,982) | | Equity at January 1, 2024 | $ (1,810,982) | | Member Contributions | - | | Member Distributions | - | | Net Income (Loss) | (1,825,281) | | Equity at December 31, 2024 | $ (3,636,263) |
Statements of Cash Flows For The Three Years Ended December 31, 2024
| 2024 | 2023 | 2022 | |
|---|---|---|---|
| Cash Flows From Operating Activities: | |||
| Net Income (Loss) | $ (1,825,281) | $ (1,117,726) | $ (482,370) |
| Adjustments to Reconcile Net Loss to Net | |||
| Cash Provided by Operating Activities: | |||
| Depreciation & Amortization | 6,000 | 6,000 | 6,000 |
| Changes in Assets and Liabilities | |||
| (Increase) Decrease in Inventory | 7,308 | 76,872 | 128,467 |
| (Increase) Decrease in Accounts Receivable | (173,640) | (51,110) | (91,766) |
| (Increase) Decrease in Prepaid Expenses | 8 | (1,510) | (28) |
| Increase (Decrease) in Accounts Payable | (71,077) | 81,530 | 44 |
| Increase (Decrease) in Unearned Revenue | 60,000 | 40,000 | - |
| Increase (Decrease) in Deferred Revenue | 4,334,346 | 3,366,736 | 1,050,392 |
| Net Cash Provided by Operating Activities | 2,337,664 | 2,400,792 | 610,739 |
Source: Item 9 — 01. Financial Statements and Exhibits. (FDD pages 68–156)
What This Means (2025 FDD)
According to Zoomin Groomin's 2025 Franchise Disclosure Document, the company experienced a decrease in inventory of $7,308 during 2024. This figure is part of the cash flow statement, specifically listed under 'Changes in Assets and Liabilities' as '(Increase) Decrease in Inventory.'
This decrease in inventory from $76,872 in 2023 to $7,308 in 2024 could signify a few things for a potential franchisee. It may indicate more efficient inventory management, where the company is selling its inventory more quickly. Alternatively, it could mean that Zoomin Groomin is holding less inventory, possibly due to changes in supply chain management or a shift in business strategy.
It's important to note that the inventory consists of vehicles and trailers held for future resale to franchises. The FDD states that subsequent to December 31, 2023, Zoomin Groomin will no longer hold title to the vehicles and thus, the vehicles will not be recorded as inventory of the Company in subsequent years. As of December 31, 2024, all inventory has been sold. This change in how Zoomin Groomin handles vehicle inventory could have implications for franchisees, potentially affecting the availability or process of acquiring vehicles needed for their mobile grooming businesses. A prospective franchisee should inquire about the current vehicle acquisition process and any associated costs.