How is the Royalty Fee paid for a Zoomin Groomin franchise?
Zoomin_Groomin Franchise · 2025 FDDAnswer from 2025 FDD Document
| 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. |
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.
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 paid weekly via electronic funds transfer (EFT) from the franchisee's bank account. The Royalty Fee is 8% of Gross Revenue, but there is a minimum weekly royalty fee of $125. Gross Revenues are defined as 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. Franchisees must provide Zoomin Groomin with a Gross Revenue report by 5:00 p.m. every Tuesday for the prior week's activity, with the week ending on Saturday at midnight for royalty collection purposes.
Zoomin Groomin requires franchisees to participate in an electronic funds transfer program, authorizing them to use a pre-authorized bank draft system. If a franchisee changes their bank account or transfers it to a different bank, they must notify Zoomin Groomin within one day and provide new documents to permit Zoomin Groomin to debit the new bank account within three days. Franchisees are required to execute an Automatic Bank Draft Authorization and pay most fees via ACH electronic funds transfer, as detailed in Schedule 2 of the Franchise Agreement.
This payment structure is fairly standard in the franchise industry, where franchisors typically collect royalties as a percentage of gross sales. The use of electronic funds transfer is also common, as it provides a reliable and efficient method for collecting fees. The minimum weekly royalty fee ensures that Zoomin Groomin receives a baseline level of income from each franchise, regardless of sales volume. Franchisees should be aware of the reporting deadlines and the requirements for notifying Zoomin Groomin of any changes to their bank account to avoid potential issues with royalty payments.