What is the Insufficient Funds Fee for Zoomin Groomin?
Zoomin_Groomin Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| Royalty Fee (Notes 1) | The Royalty Fee rate is 8% on Gross Revenue subject to a minimum Royalty Fee of $125 per week (the "Minimum Weekly Royalty Fee"). | Payable Weekly by electronic funds transfer ("EFT") from your Bank Account. | Revenues from the Franchised Business. |
| Advertising | Advertising Fund Contribution is 2% of previous week's Gross Revenue. | Payable weekly | Local, regional, or national advertising and support to promote the brand. |
| Fund | |||
| Technology Fee (Note 2) | Our then current fee up to $30 per week (presently, $10 per week) | Weekly in the same manner as the Royalty Fee | Payable to us |
| CRM Fee (Note 3) | The then-current fee charged by third party vendor (presently, $69.00 per month) | Payable monthly | Payable to third parties, but we reserve the right to collect this fee from you. |
| Insurance (Note 4) | Varies by state Δs inclirred | Payable to third parties. | |
| Additional | ace $0 As incurred | A fee is only charged if you request non-standard assistance. | |
| Assistance | |||
| (Note 5) | |||
| Late Fees | Lesser of 1% per month or the highest rate allowable by law of the state where you are located. | As incurred | Apply to amounts owed to us that are five (5) days past due. |
| Credit Card | hy third-narty credit card As incurred | Payable if you elect to pay any sums to us by credit card. | |
| Processing Fee | |||
| Transfer Fee (Note 6) | $5,000 | Payable at closing | |
| Third Party | At cost | As incurred | You agree to reimburse us for any third-party charges we incur on your behalf. |
| Charges | |||
| Type of Fee | Amount | Due Date | Remarks |
| Client Refunds | Actual amount incurred | Upon demand | You must pay us any amounts we pay to resolve customer/client concerns or complaints. |
| Audit Fee | Cost of audit plus $50 late fee per month on any late payment | Upon demand | You will pay to us our cost in performing an audit of your Franchise Business plus a Late Fee of $50 per month on any late payment found through such audit if the audit discloses an under reportin |
Source: Item 6 — OTHER FEES (FDD pages 16–20)
What This Means (2025 FDD)
According to Zoomin Groomin's 2025 Franchise Disclosure Document, the insufficient funds fee is $50 per transaction. This fee is charged to the franchisee and is due upon demand. This means that if a franchisee's payment to Zoomin Groomin is rejected due to insufficient funds in their account, they will be assessed this fee for each failed transaction.
Franchisees should ensure they maintain sufficient funds in their designated bank account to cover all payments to Zoomin Groomin to avoid incurring this fee. Since Zoomin Groomin requires participation in an electronic funds transfer program, franchisees must promptly notify Zoomin Groomin of any changes to their bank account information to prevent payment issues and associated fees.
Insufficient funds fees are a fairly standard practice in franchising and other business relationships. The amount charged by Zoomin Groomin appears to be within a typical range for such fees, as they are intended to cover the administrative costs and potential losses associated with processing rejected payments.