When is the Profit Passover fee payable to Zoomin Groomin?
Zoomin_Groomin Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| Profit Passover | 100% of all grooming fees As incurred and all convenience fees | If you provide services in another franchisee's territory. |
Source: Item 6 — OTHER FEES (FDD pages 16–20)
What This Means (2025 FDD)
According to Zoomin Groomin's 2025 Franchise Disclosure Document, the Profit Passover fee, which is 100% of all grooming and convenience fees, is payable as incurred. This fee applies if a Zoomin Groomin franchisee provides services in another franchisee's territory.
This means that if a franchisee provides services outside of their designated territory, all revenue generated from grooming and any convenience fees charged in that territory must be remitted to Zoomin Groomin. This fee is designed to compensate the franchisee whose territory was encroached upon.
For a prospective franchisee, it is crucial to understand the defined territory and ensure that business operations remain within those boundaries to avoid incurring this fee. It's also important to note that the fee is 100% of the applicable revenues, which could significantly impact profitability if services are provided outside the designated territory.