What is the notification timeframe if a Zoomin Groomin franchisee changes their bank account for EFT?
Zoomin_Groomin Franchise · 2025 FDDAnswer from 2025 FDD Document
The Royalty Fees are paid by Electronic Funds Transfer. If you change your bank account or transfer your account to a different bank, you must notify us within one day, and sign and deliver to us and the bank new documents to permit us to debit your bank account within three days. We require you to execute an Automatic Bank Draft Authorization and pay most fees to us via ACH electronic funds transfer. See Schedule 2 to the Franchise Agreement.
Source: Item 6 — OTHER FEES (FDD pages 16–20)
What This Means (2025 FDD)
According to Zoomin Groomin's 2025 Franchise Disclosure Document, franchisees are required to notify Zoomin Groomin within one day if they change their bank account used for Electronic Funds Transfer (EFT). Additionally, the franchisee must sign and deliver new documents to both Zoomin Groomin and the bank within three days to allow Zoomin Groomin to continue debiting the account.
This requirement is tied to the Royalty Fee payment, which is collected weekly via EFT. The Royalty Fee is 8% of Gross Revenue, subject to a minimum weekly fee of $125. Because Zoomin Groomin relies on timely electronic payments, prompt notification of any bank account changes is essential to avoid late fees or disruptions in royalty payments.
Most franchisors require electronic payment of royalties and other fees. The short notification window of one day for a bank account change underscores the importance of maintaining open communication with Zoomin Groomin regarding financial matters. Franchisees should be prepared to act quickly to update their banking information to remain in compliance with the franchise agreement.