How does Zoomin Groomin value its inventory?
Zoomin_Groomin Franchise · 2025 FDDAnswer from 2025 FDD Document
Inventory is valued at cost when purchased and is accounted for using the specific identification method of valuation. The inventory consists of vehicles and trailers held for future resale to franchises. The Company will recognize future income from the sales as ordinary other income on the date the title is transferred. Subsequent to the year ended December 31, 2023, the Company will no longer hold title to the vehicles and thus, the vehicles will not be recorded as inventory of the Company in subsequent years. As of December 31, 2024, all inventory has been sold.
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 company values its inventory at cost when purchased, using the specific identification method of valuation. The inventory consists of vehicles and trailers held for future resale to franchisees. Zoomin Groomin recognizes income from these sales as ordinary other income when the title is transferred.
However, the FDD also states that subsequent to the year ended December 31, 2023, Zoomin Groomin will no longer hold title to the vehicles, and therefore, the vehicles will not be recorded as inventory in subsequent years. The document further notes that as of December 31, 2024, all inventory has been sold.
This indicates a change in Zoomin Groomin's business model, where they previously held and sold vehicles/trailers to franchisees but no longer do so. A prospective franchisee should confirm with Zoomin Groomin whether this change affects any initial investment costs or ongoing operational requirements for franchisees.