When is the initial franchise fee for a Zoomin Groomin franchise due?
Zoomin_Groomin Franchise · 2025 FDDAnswer from 2025 FDD Document
Initial Fee Deferral: Franchisor defers the collection of the Initial Fee until the opening of the franchised business.
Items 5 and Item 7 are amended to also provide: "The Minnesota Department of Commerce requires us to defer payment of the initial franchise fee owed by franchisees to the franchisor until the franchisee has opened the franchised business."
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 collection of the initial franchise fee is generally deferred until the opening of the franchised business. This deferral is explicitly stated in the Minnesota Addenda to the Disclosure Document.
Furthermore, specific states such as Virginia, Illinois, Maryland, and California have addenda that modify Item 5 of the FDD, requiring Zoomin Groomin to defer payment of the initial franchise fee until the franchisor has completed its pre-opening obligations under the franchise agreement. In Virginia, this deferral is mandated by the Virginia State Corporation Commission's Division of Securities and Retail Franchising. Similarly, in Illinois, the Attorney General's Office requires deferral until Zoomin Groomin has satisfied its preopening obligations and the franchisee has commenced business, a requirement imposed due to the franchisor's financial condition. In Maryland, the Maryland Securities Commissioner requires a financial assurance due to the franchisor's financial condition, leading to the deferral of all initial fees and payments until Zoomin Groomin completes its pre-opening obligations. In California, the Department of Financial Protection and Innovation mandates that Zoomin Groomin defer the collection of all initial fees until it has completed all its pre-opening obligations and the franchisee is open for business.
In North Dakota, the initial fee is deferred 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. Therefore, the timing of the initial fee payment is contingent upon both the franchisor fulfilling its pre-opening duties and the franchisee commencing business operations, with some states having specific regulatory bodies enforcing this deferral.