Risk Score
Pending analysis
Investment Range
$186,775 - $376,650
Franchise Fee
$160,313
Total US Locations
46
Business Summary
Zoomin Groomin offers a franchise opportunity for Area Representatives to solicit, recruit, and support Zoomin Groomin unit franchisees within a designated territory. These unit franchisees provide mobile pet grooming and related pet care services using the Zoomin Groomin model. The Area Representative earns a portion of the initial franchise fees and ongoing royalty fees paid by the unit franchisees they recruit and support.
Corporate History
Zoomin Groomin USA LLC was formed as a Virginia Limited Liability Company on December 30, 2020. The company began offering area representative franchises and unit franchises in April 2021. Prior to this, Zoomin Groomin USA LLC purchased the assets of its predecessor, ZG Enterprises, Inc., on December 8, 2020. ZG Enterprises, Inc. had offered franchises since January 2005. The business concept itself originated from Mobile Pet Spa Enterprises, LLC, which was organized in 2003. Zoomin Groomin USA LLC is a subsidiary of Loyalty, LLC, which was formed in November 2017 and operates several other franchise affiliates.
Financial Overview
Investment Range
$186,775 - $376,650
Franchise Fee (Low)
$160,313
Franchise Fee (High)
$356,250
Equipment Costs (Low)
$750
Equipment Costs (High)
$1,500
Working Capital
$4,000
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
Zoomin Groomin's financial condition, as noted in the FDD's Special Risks section, raises questions about its ability to provide services and support. This is further reflected in the financial statements which show net losses for 2022 ($482,370), 2023 ($1,117,726), and 2024 ($1,825,281). The company also has negative Members' Equity across these years, reaching $(3,636,263) by the end of 2024. Due to this financial condition, several states (California, Illinois, Maryland, Minnesota, North Dakota, Virginia, and Washington) require Zoomin Groomin to defer the collection of initial franchise fees until pre-opening obligations are met and the franchisee is open for business. The company relies significantly on short-term advances and cost reimbursements with affiliates, with a substantial 'Due From Affiliates' balance on its balance sheet, and has a net operating loss carryforward.
Financing Details
Zoomin Groomin does not offer any direct or indirect financing to its Area Representatives. It also does not guarantee any notes, leases, or other financial obligations for franchisees.
Performance Metrics
Total US Locations
46
Franchised Units
46
Corporate Units
0
Franchising Since
2021
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Count
9
Litigation Summary
Zoomin Groomin's parent company's CEO and Chairman, John T. Hewitt, has been named in several lawsuits, though none are currently pending. These cases generally involved his previous roles at Liberty Tax Service and its affiliates, predating his involvement with Zoomin Groomin. These concluded actions include: a 2021 settlement where ATAX LLC (an affiliate) paid $545,000 to JTH Tax LLC for alleged trade dress infringement, tortious interference with contracts, and breach of employment agreement; two 2017 cases (K&A Publicidad and Kirke Franz Szawronski) settled for $50,000 for breach of contract and defamation claims; and several consolidated shareholder derivative actions (Asbestos Workers' Philadelphia Pension Fund, Erie County Employees Retirement System, and RSL Senior Partners) from 2017-2018 alleging Mr. Hewitt breached fiduciary duties due to misconduct, which were dismissed in 2019 following a settlement that included implementing anti-harassment policies at Liberty Tax, Inc. Additionally, a 2018 case (Bablu Shahabuddin) regarding unpaid monies, fraud, and a personal guarantee from Mr. Hewitt settled for $775,000 plus future revenue. Furthermore, a California Consent Order requires Mr. Hewitt to disclose a 2019 governmental action against Liberty Tax Service, which alleged the company failed to maintain adequate controls over tax returns prepared by its franchisees and prevent fraudulent filings. This 2019 governmental action was resolved with Liberty Tax agreeing to compliance enhancements and not rehiring Mr. Hewitt. No new litigation is pending.
Bankruptcy History
Zoomin Groomin has no bankruptcy history to disclose.
Agreement Terms
Initial Term
10 years
Renewal Term
10 years
Renewal Conditions
To renew their Area Representative Agreement, Zoomin Groomin Area Representatives must notify the franchisor in writing at least 120 days before the agreement expires. They must also sign a new Area Representative Agreement, which may not have terms and conditions materially different from their original contract, and execute a general release of any claims they might have against Zoomin Groomin. Currently, there is no renewal fee required.
Training & Support Program
Franchisor Assistance
Zoomin Groomin provides initial training, which can be held in Virginia Beach, another designated location, or online. It gives Area Representatives access to an Operations Manual for guidance. While it does not offer site selection assistance, it provides ongoing operational and marketing support. This includes developing and maintaining a corporate website with the Area Representative's contact information, creating digital marketing materials, and potentially negotiating digital campaigns (with the Area Representative paying a pro-rata share if they participate). Zoomin Groomin will also provide the current Unit Franchise Disclosure Document for Area Representatives to use in their recruitment efforts.
Initial Training Hours
8
Training Location
Virginia Beach, VA, or online
Ongoing Support
Zoomin Groomin offers ongoing assistance with operating problems and issues that Area Representatives may encounter. This includes providing marketing assistance and support, and potentially offering additional training or seminars. Zoomin Groomin maintains a corporate website that includes each Area Representative's contact information and creates and promotes digital marketing channels like social media accounts and digital advertising. Area Representatives must allow Zoomin Groomin independent electronic access to their computer systems and business information for reviews and audits, and may be required to implement corrective action plans based on these reviews.
Franchise Requirements
Industry Experience Required
No
Management Experience Required
Yes
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
Home-Based
Owner Participation
Supervisory
Territory Type
Non-Exclusive
Territory Size Requirements
Zoomin Groomin Area Representative territories are defined by zip codes, political, or geographic boundaries. A typical territory is designed to be large enough to contain between 15 and 30 Unit Territories, with each Unit Territory covering a minimum population of 125,000 residents. Zoomin Groomin uses data from the U.S. Census Bureau or other reliable services to determine population figures.
Staffing Notes
The Area Representative, or a fully trained and qualified Business Manager approved by Zoomin Groomin, must personally supervise and participate in the day-to-day operation of the Area Representative business. If a manager is designated, they must have complete decision-making authority for the business and successfully complete the initial training program.