Which items in the Disclosure Document relate to Zoomin Groomin's fees?
Zoomin_Groomin Franchise · 2025 FDDAnswer from 2025 FDD Document
r principal obligations under the franchise and other agreements. Review below for section and Item Numbers.**
| Franchisee's Obligations | Section In Franchise Agreement | Item in Disclosure document |
|---|---|---|
| a. Site | None | 11 |
| selection and acquisition/lease | ||
| b. Pre-opening purchases/leases | 4.4 | 7, 8 |
| c. Site development and other pre-opening requirements | 4.3.C | 11 |
| d. Initial and ongoing training | 4.2.A, 4.2.B | 11 |
| e. Opening | 1.4, 4.3.C | 11 |
| f. Fees | 2 | 5, 6, 7, 8, 11 |
| g. Compliance with standards and policies/Manual | 4.3.A | 8, 11 |
| h. Trademarks and proprietary information | 5 | 13, 14 |
| i. Restrictions on products/services offered | 4.1(C) | 8, 16 |
| j. Warranty and customer service requirements | 4.1.B | 6 |
| k. Territorial development and sales quotas | 1.6,Schedule 2 | 12 |
| l. Ongoing product/service purchases | 3.5, 4.4 | 8 |
| m. Maintenance, appearance & remodeling requirements | 4.3.C | Not Applicable |
| n. Insurance | 4.7 | 8 |
| o. Advertising | 1.8 | 8, 11 |
| p. Indemnification | 4.6 | 6 |
| q. Owner's participation/management/staffing | 4.1.A | 15 |
| r. Records and reports | 4.5 | 11 |
| s. Inspections and Audits | 4.5 | 11 |
| t. Transfer | 7 | 17 |
| Franchisee's Obligations | Section In | Item in |
| Franchise | Disclosure | |
| Agreement | document | |
| --------------------------------- | -------------------------------------- | ----------------------------------- |
| u. Renewal | 1.2.B | 17 |
| v. Post-termination obligations | 8.5 | 15, 16, 17 |
| w. Non-competition covenants | 8.6 | 15, 16, 17 |
| x. Dispute resolution | 9 | 17 |
Item 8.01. Other Events.
On December 11, 2017, the Company issued a press release announcing the resignation of KPMG as the Company's independent registered public accounting firm and that the Company will delay the filing of its Quarterly Report on Form 10-Q for the quarter ended October 31, 2017. A copy of the press release is attached hereto as Exhibit 99.1 to this Current Report on Form 8-K and is incorporated herein by reference.
Forward Looking Statements
This report contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, which provides a "safe harbor" for such statements in certain circumstances. The forward-looking statements include statements or expectations regarding potential impacts of KPMG's resignation, ability and timing to complete the accounting review and audits, comprehensiveness of the Company's accounting review and ability to engage an independent accounting firm and related matters. These statements are based upon current expectations, estimates, projections, beliefs and assumptions of Company management, and there can be no assurance that such expectations will prove to be correct. Because forward-looking statements involve risks and uncertainties and speak only as of the date on which they are made, actual events or results could differ materially from those discussed in the forward-looking statements as a result of various factors, including but not limited to loss of key personnel or inability to engage accounting personnel as needed; inability to address the previously disclosed accounting matters; identification of additional material weaknesses or significant deficiencies; disagreements or additional reportable events that KPMG may identify in a letter addressed to the SEC pursuant to Item 304 of Regulation S-K; failure to engage an independent accounting firm, complete the audits and re-audits and file any required restatements and periodic reports; adverse effects resulting from the Company's common stock being delisted from the Nasdaq Stock Market LLC; risks relating to the substantial costs and diversion of personnel's attention and resources due to these matters and related litigation and other factors discussed in greater detail in the Company's infings with the SEC.
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 20–27)
What This Means (2025 FDD)
According to Zoomin Groomin's 2025 Franchise Disclosure Document, several items outline the fees franchisees can expect to pay. Item 7 details the estimated initial investment, including the franchise fee, initial advertising expenses, costs for travel, food, and lodging during training, and the vehicle purchase and upfitting. The franchise fee itself is between $45,000. Initial advertising can range from $500 to $5,000. Travel, food, and lodging for training is estimated between $500 and $2,000. The vehicle purchase and upfit is estimated between $9,274 and $130,000. These initial costs are crucial for prospective franchisees to understand as they represent the upfront investment required to start the business.
Item 7 also lists other initial expenses such as tools, inventory, supplies, computer equipment, services, software, licenses, permits, insurance, professional fees, mobile telecommunications, and additional funds for the first three months. These costs range from a few hundred to several thousand dollars. The document specifies that these fees are paid to various entities, including Zoomin Groomin, suppliers, licensing authorities, insurance companies, and professional service providers. Understanding these diverse expenses is vital for franchisees to manage their initial budget effectively.
Additionally, the table outlining franchisee obligations references fees in relation to sections within the Franchise Agreement and corresponding items in the Disclosure Document. Specifically, it notes that obligations related to 'Fees' are detailed in Section 2 of the Franchise Agreement and Items 5, 6, 7, 8, and 11 of the Disclosure Document. This indicates that fees are not only limited to the initial investment but also cover ongoing costs and requirements throughout the franchise term. Prospective franchisees should carefully review these sections to fully grasp the financial commitments involved in operating a Zoomin Groomin franchise.