When does Zoomin Groomin recognize royalty revenue and other fees?
Zoomin_Groomin Franchise · 2025 FDDAnswer from 2025 FDD Document
The Company uses the accrual basis of accounting, and their accounting period is the 12-month period ending December 31 of each year.
You will pay to us a Royalty Fee of 8% of Gross Revenues on a weekly basis by electronic funds transfer. Your obligation to pay the Royalty Fee begins immediately upon execution of this Agreement and is subject to a minimum amount of $125 per week (the "Minimum Weekly Royalty Fee").
If required by the federal government, state or locality in which your Franchised Business is located, the initial franchise fee, royalties, and possibly other goods or services may be subject to sales, excise, gross receipts or similar type tax, which you will pay to us at the same time and in the same manner as you pay these fees to us.
You will pay fees to third party software providers, if any, as specified in the Manual.
Source: Item 9 — 01. Financial Statements and Exhibits. (FDD pages 68–156)
What This Means (2025 FDD)
According to the 2025 Zoomin Groomin FDD, the company uses the accrual basis of accounting, meaning that revenue is recognized when it is earned, regardless of when cash is received. This is a standard accounting practice. The FDD specifies that the franchisee is obligated to pay a royalty fee of 8% of gross revenues on a weekly basis. The obligation to pay this royalty fee begins immediately upon the execution of the Franchise Agreement. There is also a minimum weekly royalty fee of $125.
Sales, excise, or gross receipts taxes on the initial franchise fee, royalties, and other goods or services are paid at the same time and manner as these fees. Fees to third-party software providers are paid as specified in the manual.
In summary, Zoomin Groomin recognizes royalty revenue and other fees as they are earned, with specific payment terms outlined in the Franchise Agreement and Operations Manual. A prospective franchisee should carefully review these sections to understand their payment obligations and the timing of revenue recognition.