What is the required method for Zoomin Groomin franchisees to pay most fees?
Zoomin_Groomin Franchise · 2025 FDDAnswer from 2025 FDD Document
[Item 6: OTHER FEES]
*All of the listed fees are uniformly imposed payable to us, unless otherwise noted and are nonrefundable. You must participate in our electronic funds transfer program, which authorizes us to utilize a pre-authorized bank draft system. Fees payable to approved suppliers are subject to change during the term of the Franchise Agreement. These changes are not within our control. Fees paid to a third party may be refundable, depending upon the arrangement and contracts, if any, made between such third 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.
| Type of Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| Royalty Fee (Notes 1) | The Royalty Fee rate is 8% on Gross Revenue subject to a minimum Royalty Fee of $125 per week (the "Minimum Weekly Royalty Fee"). | Payable Weekly by electronic funds transfer ("EFT") from your Bank Account. | Revenues from the Franchised Business. |
| Advertising | Advertising Fund Contribution is 2% of previous week's Gross Revenue. | Payable weekly | Local, regional, or national advertising and support to promote the brand. |
| Fund | |||
| Technology Fee (Note 2) | Our then current fee up to $30 per week (presently, $10 per week) | Weekly in the same manner as the Royalty Fee | Payable to us |
| CRM Fee (Note 3) | The then-current fee charged by third party vendor (presently, $69.00 per month) | Payable monthly | Payable to third parties, but we reserve the right to collect this fee from you. |
| Insurance (Note 4) | Varies by state Δs inclirred | Payable to third parties. |
Source: Item 6 — OTHER FEES (FDD pages 16–20)
What This Means (2025 FDD)
According to Zoomin Groomin's 2025 Franchise Disclosure Document, franchisees are generally required to participate in an electronic funds transfer program for fee payments. This program authorizes Zoomin Groomin to use a pre-authorized bank draft system to collect fees. Franchisees must execute an Automatic Bank Draft Authorization and pay most fees via ACH electronic funds transfer. This requirement is further detailed in Schedule 2 of the Franchise Agreement. If a franchisee changes their bank account, they must notify Zoomin Groomin within one day and provide new documentation to allow for continued debiting of the account within three days.
The Royalty Fee, calculated as 8% of Gross Revenue subject to a minimum of $125 per week, is specifically noted as payable weekly by electronic funds transfer from the franchisee's bank account. Similarly, the Technology Fee, which can be up to $30 per week, is also collected weekly in the same manner as the Royalty Fee. The Advertising Fund contribution, set at 2% of the previous week's Gross Revenue, is also payable weekly.
While most fees are paid via electronic funds transfer, some exceptions exist. For instance, the CRM Fee ($69.00 per month) is payable to a third-party vendor, although Zoomin Groomin reserves the right to collect this fee directly from the franchisee. Insurance costs are paid to third-party providers and vary by state. The Transfer Fee of $5,000 is payable at closing. Credit card processing fees are incurred if the franchisee elects to pay any sums to Zoomin Groomin by credit card. Understanding these payment methods and due dates is crucial for managing the financial obligations of a Zoomin Groomin franchise.