Under what condition does a Zoomin Groomin franchisee have to pay attorney fees and costs?
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. |
| 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. |
Source: Item 6 — OTHER FEES (FDD pages 16–20)
What This Means (2025 FDD)
According to Zoomin Groomin's 2025 Franchise Disclosure Document, a franchisee may be required to cover the franchisor's attorney fees and costs under specific circumstances. If Zoomin Groomin is the substantially prevailing party in any legal claims, the franchisee is obligated to pay the actual amount of attorney fees and costs incurred by Zoomin Groomin. This means that if a franchisee is involved in a dispute with Zoomin Groomin and Zoomin Groomin wins the case, the franchisee will be responsible for Zoomin Groomin's legal expenses. These fees are due at the time the expense is incurred.
This provision is a standard clause in many franchise agreements, designed to protect the franchisor from legal costs incurred as a result of franchisee actions or disputes. It underscores the importance of franchisees adhering to the franchise agreement and operating within the established guidelines. Failing to do so, and subsequently losing a legal battle with Zoomin Groomin, can result in significant financial burden for the franchisee.
Prospective franchisees should carefully consider this clause and understand the potential financial implications of any legal disputes with Zoomin Groomin. It is advisable to seek legal counsel to fully understand the scope of this obligation and to assess the risks associated with it. Understanding this potential liability is a crucial part of evaluating the overall financial commitment and risk profile of a Zoomin Groomin franchise.