What was the total royalty revenue for Zoomin Groomin in 2024?
Zoomin_Groomin Franchise · 2025 FDDAnswer from 2025 FDD Document
0,782 | 39,540 | | Total Current Liabilities | 1,831,712 | 1,074,372 | 213,100 | | | | | | | Long-Term Liabilities | | | | | Deferred Revenue | 7,974,307 | 4,125,904 | 1,240,410 | | Total Long-Term Liabilities | 7,974,307 | 4,125,904 | 1,240,410 | | Total Liabilities | 9,806,019 | 5,200,276 | 1,453,510 | | Members' Equity | | | | | Retained Earnings | (3,636,263) | (1,810,982) | (693,256) | | Members' Equity | (3,636,263) | (1,810,982) | (693,256) | | TOTAL LIABILITIES & EQUITY | $ 6,169,756 | $ 3,389,294 | $ 760,254 |
Statements of Operations For The Three Years Ended December 31
| 2024 | 2023 | 2022 | |
|---|---|---|---|
| Revenues | |||
| Franchise Fees | $ 496,101 | $ 260,076 | $ 24,545 |
| Marketing & Technology Revenue | 383,043 | 103,849 | 10,059 |
| Area Rep Sales Revenue | 485,389 | 484,754 | 55,248 |
| Royalty Revenue | 1,420,950 | 376,630 | 92,640 |
| Other Income | 40,000 | 113,749 | - |
| Interest Income | 73,831 | 57,843 | 23,128 |
| Total Revenues | 2,899,314 | 1,396,901 | 205,620 |
| Expenses | |||
| Advertising and Marketing | 919,283 | 280,833 | 96,532 |
| Amortization Expense | 6,000 | 6,000 | 6,000 |
| Area Rep Expense | 1,658,376 | 568,628 | 74,059 |
| Commissions and Consulting | 167,473 | 198,260 | 9,750 |
| Contract Labor | 48,517 | 4,025 | 3,750 |
| Filing Fees | 8,569 | 7,905 | 5,951 |
| Insurance Expense | 7,492 | 5,368 | 4,203 |
| Lease Expense | 27,258 | - | - |
| Legal and Professional | 68,861 | 12,145 | 10,294 |
| Licenses & Fees | 175 | 601 | 535 |
| Meal Expense | 11,695 | 10,425 | 5,372 |
| Meeting Expense | 832 | 2,027 | 10,737 |
| Office Expense |
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 total royalty revenue for the company in 2024 was $1,420,950. This figure is part of a larger table presenting the company's revenues, expenses, and net loss for the years 2022, 2023, and 2024. The table provides a clear overview of the brand's financial performance over the three-year period.
For a prospective franchisee, this royalty revenue figure is an important indicator of the brand's financial health and the potential earnings from franchise operations. Royalty revenue typically comes from a percentage of gross sales that franchisees pay to the franchisor. A substantial increase in royalty revenue from 2023 ($376,630) to 2024 ($1,420,950) suggests growth in the number of franchisees, increased sales per franchisee, or a combination of both. This growth could be seen as a positive sign for the brand.
However, it's crucial to consider this figure in the context of the company's overall financial performance. While royalty revenue increased significantly, Zoomin Groomin still reported a net loss of $1,825,281 in 2024. This indicates that the company's expenses far outweighed its revenues. A potential franchisee should investigate the reasons for this net loss and assess whether the business model is sustainable. Understanding the expenses, such as advertising and marketing ($919,283) and area rep expenses ($1,658,376), is essential to evaluating the franchise's profitability.
In summary, while the increase in royalty revenue is a positive sign, prospective franchisees should conduct thorough due diligence. They should analyze the complete financial statements, understand the factors contributing to the net loss, and evaluate the long-term financial viability of the Zoomin Groomin franchise opportunity.