What is the late fee for late payments related to a Zoomin Groomin audit?
Zoomin_Groomin Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| 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 reporting of Gross Revenues or underpayment to us by 5% or more. |
Source: Item 6 — OTHER FEES (FDD pages 16–20)
What This Means (2025 FDD)
According to Zoomin Groomin's 2025 Franchise Disclosure Document, if an audit reveals an under reporting of Gross Revenues or underpayment to Zoomin Groomin by 5% or more, the franchisee is responsible for the cost of the audit. In addition to covering the audit expenses, a late fee of $50 per month is applied to any late payment related to the audit fee.
This means that if a Zoomin Groomin franchisee's audit uncovers financial discrepancies meeting the specified criteria, they will not only have to rectify the underpayment and cover the audit cost, but also face an additional charge of $50 for each month the payment is overdue. This late fee is specifically tied to audit-related payments and is separate from other potential late fees outlined in the FDD.
Franchisees should ensure accurate financial reporting and timely payments to avoid triggering an audit and incurring these additional costs. Maintaining meticulous records and adhering to Zoomin Groomin's reporting guidelines can help prevent discrepancies that could lead to an audit. It is also important to note that the late fee is applied to any late payment found through such audit if the audit discloses an under reporting of Gross Revenues or underpayment to Zoomin Groomin by 5% or more.