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Under what conditions is a Zoomin Groomin franchisee required to pay the $5,000 transfer fee?

Zoomin_Groomin Franchise · 2025 FDD

Answer from 2025 FDD Document

ures such as lodging, meals, and transportation.

2.9.Third Party Charges

If we incur third party charges on your behalf, you will reimburse us for any such charges.

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, a franchisee must pay a $5,000 transfer fee if they wish to transfer ownership of the rights under the Franchise Agreement. This fee applies whether the franchisee is transferring all of their rights or just a majority ownership stake in the agreement or in an entity holding the agreement.

This transfer fee is a standard practice in franchising. It helps Zoomin Groomin cover the costs associated with reviewing and approving the transfer, as well as updating their records. The fee is triggered when the franchisee decides to sell their business or transfer a controlling interest to another party.

It's important for prospective Zoomin Groomin franchisees to understand this requirement, as it will impact their financial planning if they decide to sell their franchise in the future. They should factor this fee into their calculations when determining the potential profitability of their business and the eventual sale price. Additionally, in the event of death or incapacity, the franchisee's executor, personal representative, or guardian must seek a transfer of rights, complete the transfer within six months, pay all monies owed including the transfer fee, and sign the current transfer and release form.

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.