How is the Royalty Fee calculated for a Zoomin Groomin franchise?
Zoomin_Groomin Franchise · 2025 FDDAnswer from 2025 FDD Document
- OTHER FEES
| 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. | |
| Additional | ace $0 As incurred | A fee is only charged if you request non-standard assistance. | |
| Assistance | |||
| (Note 5) | |||
| Late Fees | Lesser of 1% per month or the highest rate allowable by law of the state where you are located. | As incurred | Apply to amounts owed to us that are five (5) days past due. |
| Credit Card | hy third-narty credit card As incurred | Payable if you elect to pay any sums to us by credit card. | |
| Processing Fee | |||
| Transfer Fee (Note 6) | $5,000 | Payable at closing | |
| Third Party | At cost | As incurred | You agree to reimburse us for any third-party charges we incur on your behalf. |
| Charges | |||
| Type of Fee | Amount | Due Date | Remarks |
| Client Refunds | Actual amount incurred | Upon demand | You must pay us any amounts we pay to resolve customer/client concerns or complaints. |
| Audit Fee | Cost of audit plus $50 late fee per month on any late payment | Upon demand | You will pay to us our cost in performing an audit of your Franchise Business plus a Late Fee of $50 per month on any late payment found through such audit if the audit discloses an under reporting of Gross Revenues or underpayment to us by 5% or more. |
| Insufficient | $50 per transaction | Upon demand | |
| Funds Fee | |||
| Sales, Excise or | Actual amount incurred | As incurred | You must reimburse |
| Gross | us if we pay any tax | ||
| Receipts | on any fee related to | ||
| Tax | this Agreement. |
Source: Item 6 — OTHER FEES (FDD pages 16–20)
What This Means (2025 FDD)
According to Zoomin Groomin's 2025 Franchise Disclosure Document, the Royalty Fee is calculated as 8% of Gross Revenue, subject to a minimum weekly fee of $125. Gross Revenues include all receipts, whether in cash, credit, checks, bitcoin, or other means of exchange, net of any tax, adjustments, credits, and allowances made according to the Operations Manual. Zoomin Groomin requires franchisees to report Gross Revenues by 5:00 p.m. every Tuesday for the prior week's activity, with the week ending on Saturday at midnight. Franchisees must participate in an electronic funds transfer program for Royalty Fee payments.
The obligation to pay the Royalty Fee begins immediately upon signing the Franchise Agreement. However, the Minimum Weekly Royalty Fee applies starting the thirteenth week after either completing initial training or beginning operations, whichever comes first. This means that for the first twelve weeks, franchisees pay 8% of Gross Revenue, and after that, they pay either 8% of Gross Revenue or $125, whichever is higher.
Zoomin Groomin also collects an Advertising Fund contribution of 2% of the previous week's Gross Revenue, payable weekly. Additionally, there is a Technology Fee, currently $10 per week, and a CRM Fee, currently $69 per month, payable to third parties, although Zoomin Groomin reserves the right to collect this fee directly. These fees, along with the Royalty Fee, are uniformly imposed and nonrefundable, payable through electronic funds transfer.