Risk Score
Pending analysis
Investment Range
$318,500 - $497,050
Franchise Fee
$44,550
Min Cash Required
$9,000
Total US Locations
64
Business Summary
Zoom Room Franchising, LLC grants franchises for businesses that offer obedience and agility training, solution-oriented pet retail products, and social events for dogs and their owners. These Zoom Room Franchised Businesses operate from approved retail locations known as Dog Training Gyms.
Corporate History
Zoom Room Franchising, LLC was formed in Colorado in July 2017 and began offering franchises in August 2017. It acquired its franchise assets from its predecessor, Zoom Room, Inc. (ZRI), which was established in December 2008 and began franchising Zoom Room businesses in April 2009. ZRF acquired substantially all of ZRI's franchise assets in August 2017.
Financial Overview
Investment Range
$318,500 - $497,050
Franchise Fee (Low)
$44,550
Franchise Fee (High)
$49,500
Minimum Cash Required
$9,000
Royalty %
8%
Marketing %
1%
Equipment Costs (Low)
$180,100
Equipment Costs (High)
$262,800
Working Capital
$19,500
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
The independent auditor for Zoom Room Franchising, LLC issued an unqualified opinion on the company's financial statements for the year ended August 31, 2024. However, the company's financial statements for prior periods (2022 and 2023) were restated due to errors in revenue and expense recognition related to franchise sales. Management has addressed these issues by reevaluating internal controls and implementing corrective measures. The financial statements show an accumulated deficit, indicating negative equity.
Financing Details
Zoom Room Franchising, LLC does not provide any direct or indirect financing to its franchisees. This means that Zoom Room Franchised Business owners will need to secure their own loans or other financial arrangements through third-party lenders. The franchisor also does not guarantee any loans, leases, or other obligations for the franchisee.
Performance Metrics
Total US Locations
64
Franchised Units
64
Corporate Units
4
Avg Square Footage
3,000
Franchising Since
2009
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Summary
Zoom Room Franchising, LLC has no litigation history to report.
Bankruptcy History
Zoom Room Franchising, LLC has no bankruptcy information to report.
Agreement Terms
Initial Term
10 years
Renewal Term
10 years
Renewal Conditions
To renew their Zoom Room Franchised Business, franchisees must be in good standing, meaning they have fully complied with their existing Franchise Agreement and all financial obligations to Zoom Room Franchising, LLC and its affiliates. They need to secure a suitable location for the renewed term and make any necessary capital improvements to ensure the business meets current system standards. Franchisees must provide timely written notice of their intent to renew and will be required to sign Zoom Room Franchising, LLC's then-current franchise agreement and other related documents, which might have significantly different terms and higher fees. They must also meet current training and certification requirements and sign a general release of claims.
Training & Support Program
Franchisor Assistance
Zoom Room Franchising, LLC provides franchisees with substantial assistance both before and after opening. Before opening, this includes written guidelines and assistance for site selection, approval of the lease, up to three days of on-site support during the grand opening, and design and construction consulting for the facility build-out. Franchisees also receive lists of approved suppliers, electronic access to the Confidential Operations Manual, and help with their initial marketing program and an extensive initial training program. After opening, Zoom Room Franchising, LLC offers ongoing guidance via phone, email, and bulletins on operational methods, accounting, and marketing strategies. It also sets and updates system standards, approves advertising materials, maintains the brand website, and specifies required computer systems.
Initial Training Hours
124
Training Location
Culver City, California, or other designated training facilities, with virtual webinar workshops and online training
Ongoing Support
After opening, Zoom Room Franchising, LLC provides ongoing support to franchisees through periodic advice and general guidance via telephone, email, and bulletins covering operational methods, accounting, and marketing. It also continuously establishes and modifies system standards, approves local advertising materials, updates the Confidential Operations Manual, and maintains the brand's website. Franchisees are required to attend an annual national convention and may be required to attend additional refresher or advanced training courses, which can be optional or mandatory, and delivered through various distance learning methods. The franchisor may also make periodic on-site visits to the business to provide assistance.
Franchise Requirements
Ideal Candidate Profile
While Zoom Room Franchising, LLC does not explicitly describe an "ideal candidate" profile, it does mention offering multi-unit opportunities to "well qualified prospective franchisees." Although it strongly recommends a full-time, hands-on managing owner for each Zoom Room Franchised Business, this level of involvement is not a strict requirement, suggesting that the franchise may allow for some flexibility in owner participation.
Industry Experience Required
No
Management Experience Required
No
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
Retail
Owner Participation
Supervisory
Territory Type
Protected
Staff Count
3
Territory Size Requirements
Zoom Room Franchising, LLC defines its franchise territories based on geographic area, the number of non-traditional locations, and population characteristics, including density and dynamics. The franchisor aims to grant one license for areas with a population of approximately 100,000 people, using U.S. Census data and other statistical sources. Territories may be smaller in dense metropolitan areas and larger in less populated suburban or rural areas.
Staffing Notes
Zoom Room Franchising, LLC requires each Zoom Room Franchised Business to have at least two certified dog trainers, which can include the Managing Owner or Designated Manager. All trainers must complete Zoom Room Franchising, LLC's initial training and be approved. Once a location has a Level 3 / Master Trainer, they can certify other trainers. The business must always be under the day-to-day supervision of a Managing Owner or Designated Manager who has completed the required training, and any replacement managers must complete this training within 60 days. Franchisees are solely responsible for all hiring and employment decisions for their staff.