When does the Minimum Weekly Royalty Fee begin for a Zoomin Groomin franchise?
Zoomin_Groomin Franchise · 2025 FDDAnswer from 2025 FDD Document
Note 1: Royalty Fee. Your obligation to pay the Royalty Fee will commence immediately upon execution of a Franchise Agreement. This fee is subject to the Minimum Weekly Royalty Fee beginning the thirteenth week immediately following the earlier of (a) the day you complete Initial Training or (b) the day you begin operations, whichever occurs first.
The Royalty Fee is calculated based upon Gross Revenues. "Gross Revenues" means the total of all receipts whether cash, credit, checks, bitcoin, or other means of exchange net of any tax, adjustments, credits and allowances actually made in accordance with the Operations Manual. Even though we reserve the right to access your computer system to download sales information, you must provide us with the required Gross Revenue report by 5:00 p.m. every Tuesday for the prior week's activity. The end of each week for Royalty collection purposes is Saturday at midnight.
Source: Item 6 — OTHER FEES (FDD pages 16–20)
What This Means (2025 FDD)
According to Zoomin Groomin's 2025 Franchise Disclosure Document, the obligation to pay the Minimum Weekly Royalty Fee begins the thirteenth week after the earlier of completing initial training or beginning operations. The Royalty Fee itself, calculated as 8% of Gross Revenue, starts immediately upon signing the Franchise Agreement. However, if 8% of gross revenue is less than $125 per week, the franchisee must pay the Minimum Weekly Royalty Fee of $125.
For a prospective Zoomin Groomin franchisee, this means that while you'll owe a percentage of your revenue from day one, you have a grace period of about three months before the minimum royalty kicks in. This could provide some financial relief during the initial startup phase as you build your customer base. It also incentivizes franchisees to begin operations as soon as possible after training to maximize the time before the minimum fee applies.
It's important to note that "Gross Revenues" includes all receipts, whether cash, credit, checks, or other means of exchange, net of any tax, adjustments, credits, and allowances actually made in accordance with the Operations Manual. Zoomin Groomin also requires franchisees to submit a Gross Revenue report every Tuesday by 5:00 p.m. for the prior week's activity, with the week ending on Saturday at midnight. This ensures timely royalty collection via Electronic Funds Transfer.