What is the maximum Late Fee that Zoomin Groomin can charge?
Zoomin_Groomin Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| 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. |
| 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, the late fees charged to franchisees are the lesser of 1% per month or the highest rate allowable by law in the state where the franchisee's business is located. These late fees apply to any amounts owed to Zoomin Groomin that are five days past due. This means that if a franchisee is late on payments, they will be charged either 1% of the overdue amount each month, or the maximum percentage allowed by their state's laws, whichever is lower.
For a prospective Zoomin Groomin franchisee, it's important to understand the implications of this late fee policy. Franchisees should be aware of the specific laws in their state regarding maximum allowable interest rates or late fees, as this could impact the amount they are charged. It is also important to note that the late fee applies to all amounts owed to Zoomin Groomin, which could include royalty fees, advertising fees, or other charges outlined in the franchise agreement.
Franchisees should strive to make all payments on time to avoid incurring these late fees. Given that the late fee applies to amounts that are just five days past due, it is crucial to have systems in place to ensure timely payments. Additionally, the FDD also mentions a $50 late fee per month on any late payment found through an audit if the audit discloses an under reporting of Gross Revenues or underpayment to Zoomin Groomin by 5% or more. This highlights the importance of accurate financial reporting and timely payments to avoid additional penalties.
In the franchise industry, it is common for franchisors to charge late fees on overdue payments. The specific amount and terms of these fees can vary, so it is important for prospective franchisees to carefully review the franchise agreement and understand the franchisor's policies. Zoomin Groomin's approach of charging the lesser of 1% per month or the state's maximum allowable rate is a fairly standard practice, but franchisees should still be diligent in managing their payments to avoid these charges.