Does North Dakota require Zoomin Groomin to defer collection of the initial fee?
Zoomin_Groomin Franchise · 2025 FDDAnswer from 2025 FDD Document
NORTH DAKOTA ADDENDUM TO THE FRANCHISE AGREEMENT
If any of the terms of the Franchise Agreement are inconsistent with the terms below, the terms below control.
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- North Dakota requires the Franchisor to defer collection of the Initial Fee until the Franchisor has completed all of their initial obligations owed to North Dakota Franchisees under the Franchise Agreement or other documents and the Franchisee has commenced doing business pursuant to the Franchise Agreement.
Source: Item 9 — 01. Financial Statements and Exhibits. (FDD pages 68–156)
What This Means (2025 FDD)
According to Zoomin Groomin's 2025 Franchise Disclosure Document, North Dakota has specific requirements regarding the collection of the initial franchise fee. The FDD includes a North Dakota addendum that modifies certain terms of the standard franchise agreement to comply with North Dakota law.
Specifically, North Dakota requires Zoomin Groomin to defer the collection of the initial franchise fee. This deferral lasts until Zoomin Groomin has fulfilled all of its initial obligations to the franchisee as outlined in the Franchise Agreement and other related documents. Additionally, the franchisee must have commenced business operations before Zoomin Groomin can collect the initial franchise fee.
This requirement provides a level of protection for franchisees in North Dakota. It ensures that Zoomin Groomin fulfills its initial obligations before receiving the initial franchise fee, and that the franchisee has started their business. This arrangement reduces the risk for the franchisee, as they are not required to pay the full initial fee until the franchisor has provided the necessary support and the business is operational.