Does Zoomin Groomin receive payments from designated suppliers based on franchisee purchases?
Zoomin_Groomin Franchise · 2025 FDDAnswer from 2025 FDD Document
blish a franchise and approximately 10- 20% of your operating costs.
Supplier Payments to Us:
Designated suppliers may make payments to us from franchisee purchases.
We did not yet receive any supplier rebates for the fiscal year ending December 31, 2024, but we may do so in the future.
Purchasing or Distribution Cooperatives:
We may negotiate purchase arrangements with suppliers, including price terms, for the benefit of our franchisees.
Purchase Arrangements:
We currently have a negotiated purchase arrangement with an approved CRM supplier, which includes discounted pricing terms for the benefit of our franchisees. We have also negotiated a purchase agreement with certain vehicle upfitters, which includes discounted pricing terms for the benefit of our franchisees.
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 20–27)
What This Means (2025 FDD)
According to Zoomin Groomin's 2025 Franchise Disclosure Document, designated suppliers may make payments to Zoomin Groomin based on franchisee purchases. While Zoomin Groomin did not receive any supplier rebates for the fiscal year ending December 31, 2024, they may do so in the future. This means that Zoomin Groomin has the potential to receive financial benefits from the vendors that franchisees are required or encouraged to use.
This arrangement is common in franchising, where franchisors negotiate with suppliers and receive rebates or other considerations based on the volume of purchases made by their franchisees. For a prospective Zoomin Groomin franchisee, this means that some portion of the money they spend on supplies and services may indirectly benefit the franchisor. While this is not necessarily a negative aspect, it is important to be aware of the potential for conflicts of interest.
Zoomin Groomin also negotiates purchase arrangements with suppliers, including price terms, for the benefit of franchisees. Currently, they have a negotiated purchase arrangement with an approved CRM supplier and certain vehicle upfitters, which includes discounted pricing terms for franchisees. Zoomin Groomin reserves the right to negotiate other purchase arrangements with suppliers, including preferred pricing arrangements, for the benefit of franchisees in the future. Prospective franchisees should inquire about these arrangements and how they might impact their costs and purchasing decisions.