What pre-opening obligations must Zoomin Groomin satisfy before collecting the initial franchise fee in Illinois?
Zoomin_Groomin Franchise · 2025 FDDAnswer from 2025 FDD Document
ILLINOIS ADDENDUM TO THE FRANCHISE AGREEMENT
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- The Franchise Agreement is modified to also provide that we defer collection of all initial fees until we have satisfied our pre-opening obligations to you and you have commenced doing business under the Franchise Agreement. The Illinois Attorney General's Office imposed this deferral requirement due to our financial condition.
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- Payment of the initial franchise fee shall be deferred until Franchisor has satisfied its preopening obligations to Franchisee and Franchisee has commenced doing business. The Illinois Attorney General's Office imposed this deferral requirement due to Franchisor's financial condition.
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, Illinois franchisees benefit from specific protections regarding the initial franchise fee. Due to Zoomin Groomin's financial condition, the Illinois Attorney General's Office requires that Zoomin Groomin defer collecting all initial fees until it has fulfilled all its pre-opening obligations to the franchisee.
This means that Zoomin Groomin cannot collect the initial franchise fee until it has met all of its responsibilities to help the franchisee get their business up and running. Only after Zoomin Groomin has satisfied these obligations and the franchisee has actually commenced business operations can the initial franchise fee be collected.
This deferral provides a significant advantage for Illinois franchisees, reducing their upfront financial risk. It ensures that Zoomin Groomin is fully committed to supporting the franchisee's launch before receiving the initial fee. Prospective franchisees in Illinois should carefully review the Franchise Agreement and the Illinois Addendum to fully understand Zoomin Groomin's pre-opening obligations and ensure they are met before paying any initial fees.