factual

Under what condition are initial fees and payments owed by Zoomin Groomin franchisees deferred?

Zoomin_Groomin Franchise · 2025 FDD

Answer from 2025 FDD Document

The Franchise Agreement is modified to also provide as follows: "The Virginia State Corporation Commission's Division of Securities and Retail Franchising requires us to defer payment of the initial franchise fee and other initial payments owed by franchisees to the franchisor until the franchisor has completed its pre-opening obligations under the franchise agreement."

Source: Item 9 — 01. Financial Statements and Exhibits. (FDD pages 68–156)

What This Means (2025 FDD)

According to the 2025 Zoomin Groomin Franchise Disclosure Document, in the state of Virginia, the payment of the initial franchise fee and other initial payments owed by franchisees is deferred until Zoomin Groomin has completed its pre-opening obligations under the franchise agreement. This deferral is mandated by the Virginia State Corporation Commission's Division of Securities and Retail Franchising.

This addendum to the franchise agreement ensures that franchisees in Virginia are not required to pay the initial franchise fee until Zoomin Groomin has fulfilled its obligations to prepare the franchisee for opening their business. These pre-opening obligations typically include site selection assistance, initial training, and providing the necessary manuals and materials to operate the franchise.

For prospective Zoomin Groomin franchisees in Virginia, this deferral provides a significant financial benefit. It reduces the upfront financial burden and ensures that franchisees only pay the initial fee after Zoomin Groomin has provided the necessary support to get their business started. This arrangement offers a level of protection and aligns the interests of both the franchisor and franchisee during the critical pre-opening phase.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.