What was the total amount of Zoomin Groomin's prepaid expenses in 2024?
Zoomin_Groomin Franchise · 2025 FDDAnswer from 2025 FDD Document
r, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about Zoomin Groomin USA LLC's ability to continue as a going concern for a reasonable period of time.
We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control related matters the auditor identified during the audit.
DASH Business Solutions, LLC
DASH
Source: Item 9 — 01. Financial Statements and Exhibits. (FDD pages 68–156)
What This Means (2025 FDD)
According to Zoomin Groomin's 2025 Franchise Disclosure Document, the company's prepaid expenses totaled $1,530 in 2024. This figure is part of the company's balance sheet, which provides a snapshot of Zoomin Groomin's assets, liabilities, and equity at the end of the year. Prepaid expenses are listed under current assets, which also include cash and cash equivalents, inventory, accounts receivable, income tax asset, and due from affiliates.
For a prospective franchisee, understanding the level of prepaid expenses can offer insights into the company's financial management and operational strategies. Prepaid expenses typically represent payments made in advance for goods or services that will be used in the future, such as insurance premiums or rent. The relatively low amount of prepaid expenses in 2024 might suggest that Zoomin Groomin prefers to minimize advance payments or that its operational costs are structured differently.
It's also worth noting the trend in prepaid expenses over the three years presented in the balance sheet. In 2023, prepaid expenses were slightly higher at $1,538, while in 2022, they were significantly lower at $28. This variability could be due to changes in the company's operational needs or accounting practices. A potential franchisee may want to inquire about the nature of these prepaid expenses and the reasons for the fluctuations to gain a better understanding of Zoomin Groomin's financial practices.
Reviewing the broader context of the balance sheet, including total assets and liabilities, alongside the income statement and cash flow statement, will provide a more comprehensive view of Zoomin Groomin's financial health. This information, combined with due diligence and discussions with existing franchisees, can help a prospective franchisee make an informed decision about investing in a Zoomin Groomin franchise.