What is the Minimum Weekly Royalty Fee for a Zoomin Groomin franchise?
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 per week (the "Minimum Weekly Royalty Fee"). | Payable Weekly by electronic funds transfer ("EFT") from your Bank Accoun |
Source: Item 6 — OTHER FEES (FDD pages 16–20)
What This Means (2025 FDD)
According to Zoomin Groomin's 2025 Franchise Disclosure Document, franchisees must pay a royalty fee of 8% of gross revenue, but no less than $125 per week. This minimum payment is referred to as the "Minimum Weekly Royalty Fee." This royalty fee is paid weekly through electronic funds transfer from the franchisee's bank account.
The royalty payment obligation begins immediately upon signing the Franchise Agreement. However, the Minimum Weekly Royalty Fee takes effect later, specifically starting the thirteenth week after the earlier of completing initial training or beginning operations. This grace period provides new Zoomin Groomin franchisees some time to ramp up their business before the minimum royalty applies.
Franchisees should be aware that even if their gross revenues are low in the initial weeks, they will eventually be responsible for paying either 8% of their gross revenue or $125, whichever is greater. This structure is common in franchising, as it ensures the franchisor receives a baseline income to support the franchise system. It also incentivizes franchisees to achieve a certain level of sales to minimize the impact of the minimum fee.