Under what conditions will Zoomin Groomin defer the initial franchise fee?
Zoomin_Groomin Franchise · 2025 FDDAnswer from 2025 FDD Document
19. Initial Fee Deferral:
The franchise agreement is amended to also provide: "Initial fees will be deferred until the Franchisor has fulfilled its initial pre-opening obligations to the franchisee and the franchisee is open for business."
The undersigned does hereby acknowledge receipt of this addendum.
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 initial franchise fee may be deferred under specific conditions. For all franchisees, Zoomin Groomin will defer initial fees until the company has fulfilled its pre-opening obligations to the franchisee and the franchisee is open for business.
Additionally, for franchisees in California, the collection of all initial fees will be deferred until Zoomin Groomin has completed all of its pre-opening obligations and the franchisee is open for business. This deferral is due to the Department determining that Zoomin Groomin has not demonstrated they are adequately capitalized and/or that they must rely on franchise fees to fund their operations.
For franchisees in Virginia, the Virginia State Corporation Commission's Division of Securities and Retail Franchising requires Zoomin Groomin to defer payment of the initial franchise fee and other initial payments until Zoomin Groomin has completed its pre-opening obligations under the franchise agreement. This means that franchisees in these states will not be required to pay the initial franchise fee until certain conditions are met.