When is the Transfer Fee payable 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 |
Source: Item 6 — OTHER FEES (FDD pages 16–20)
What This Means (2025 FDD)
According to Zoomin Groomin's 2025 Franchise Disclosure Document, the Transfer Fee is $5,000 and is payable at closing. This means that if a franchisee decides to sell their Zoomin Groomin franchise to a new owner, the $5,000 fee must be paid when the transfer of ownership is finalized.
Zoomin Groomin will serve as the settlement agent on transfers of ownership, which is intended to protect both the buyer and the seller during the transfer process. However, the FDD specifies that a Transfer Fee is not required if the franchise outlet is transferred to an entity where the franchisee is the majority owner, or if the outlet is transferred to the franchisee's child, parent, sibling, or spouse.
Prior to the transfer of ownership, all outstanding amounts due to Zoomin Groomin must be paid. This ensures that the franchisee is in good financial standing with the franchisor before the transfer is completed. This is a fairly standard practice in franchising, as franchisors want to ensure a smooth transition and protect the brand's reputation.