When does the obligation to pay the Royalty Fee commence for a Zoomin Groomin franchise?
Zoomin_Groomin Franchise · 2025 FDDAnswer from 2025 FDD Document
hird party and the franchisee.
NOTES:
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.
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.
Note 2: Technology Fee. Pricing for the Technology Fee is set by us and is not calculated based on the precise price of any specific service; however, it is intended to reimburse us for expenses we reasonably incur in providing each franchisee with an e-mail address for their Franchised Business, and our expenses incurred in creating and maintaining certain web-based systems that serve as a resource for our franchises. We will use commercially reasonable judgment in setting this price. We reserve the right to increase this fee as reasonably required by us as technology advances and the cost of providing this technology increases up to a maximum Technology Fee of $30 per week. This Technology Fee is in addition to our CRM Fee.
Note 3: CRM Fee. You are required to utilize a customer relationship management ("CRM") system with scheduling functionality in the operation of your Franchised Business. Scheduling appointments is an essential part of your business. You will utilize an approved CRM vendor and if you do not pay their fee when due, we have the right to pay the fee on your behalf and collect the same from you.
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 Royalty Fee begins immediately upon the execution of the Franchise Agreement. However, the Minimum Weekly Royalty Fee does not start until the thirteenth week after the earlier of two events: either the completion of Initial Training or the commencement of operations. This means that while a franchisee is technically obligated to pay royalties from the moment they sign the agreement, they will not be held to the minimum weekly amount for a grace period of approximately three months, allowing them time to establish their business.
The Royalty Fee is calculated as 8% of Gross Revenue, but is subject to a Minimum Weekly Royalty Fee of $125. Gross Revenues include all receipts, whether in cash, credit, checks, or other forms of payment, net of any tax, adjustments, credits, and allowances made according to the Operations Manual. Zoomin Groomin requires franchisees to report their Gross Revenues every Tuesday by 5:00 p.m. for the prior week's activity, with the week ending on Saturday at midnight.
Franchisees must pay Royalty Fees weekly via Electronic Funds Transfer (EFT). If a franchisee changes their bank account, they are required to notify Zoomin Groomin within one day and provide new documents to authorize debits from the new account within three days. This reliance on electronic transfers is a common practice in franchising, ensuring timely and consistent payments. Zoomin Groomin also requires franchisees to execute an Automatic Bank Draft Authorization for fee payments.