When is the Insufficient Funds Fee payable to Zoomin Groomin?
Zoomin_Groomin Franchise · 2025 FDDAnswer from 2025 FDD Document
- OTHER FEES
| 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 |
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 of $50 per transaction is payable to Zoomin Groomin upon demand. This means that if a franchisee's payment to Zoomin Groomin is rejected due to insufficient funds, the franchisee will immediately owe Zoomin Groomin $50 in addition to the original amount.
This fee is fairly standard in franchising and other business relationships. It is designed to cover the administrative costs and potential losses incurred by Zoomin Groomin as a result of the failed payment. Franchisees should ensure they have sufficient funds available when making payments to avoid incurring this fee.
It is important for prospective Zoomin Groomin franchisees to understand all the fees associated with the franchise, including the Insufficient Funds Fee, and to budget accordingly. Maintaining accurate financial records and ensuring timely payments can help franchisees avoid this and other late or penalty fees.