Zoom Room Franchise Cost, Revenue & Review 2026
- Investment
- $303K – $465K
- Disclosed sales
- $410K
- gross sales, not profit
- SBA charge-off
- Limited · 47 loans
Data from FDD filing + SBA 7(a) records
Analysis by FranchiseVerdict Research · Methodology
Zoom Room is an indoor dog training and socialization franchise offering obedience classes, agility, and puppy programs. Franchisees run the training gyms, managing instructors, class scheduling, and retail sales.
FranchiseVerdict summary · 2026
A Zoom Room franchise requires a total initial investment of $303K – $465K, including a $50K franchise fee and an ongoing 8.0% royalty[2]. Per the 2025 FDD, average unit revenue was $410K[2]. FranchiseVerdict grade: B (Above average), an editorial assessment, not investment advice. Run a live ROI scan →
Sources, dates and evidence
FDD issued: · Data extracted: · Last cited check: · Staleness risk: low - issued within the last 12 months
Evidence: strong✓ Investment (Item 7)✓ Item 19 status✓ Units and owners (Item 20)✓ SBA loan coverage✓ Litigation (Item 3)✓ Financial statements (Item 21)✓ Franchisor identityhow this is scored8 of 8 headline figures on this page cite a page of the filing.
Overview
- Investment
- $303K – $465K
- 60th pct Pet Services
- Avg gross sales
- $410K
- 12th pct Pet Services
- Royalty
- 8.0%
- 69th pct Pet Services
- Units
- 60
- 69th pct Pet Services
- SBA charge-off
- N/A
Quick verdict · Pet Services · color = vs category peers
Green = favorable by >10% vs Pet Services median · No shading = within ±10% · Red = unfavorable by >10% · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Bottom line
- COSTTotal investment $303K – $465K including a $50K franchise fee, 8.0% ongoing royalty.
- RETURNSAverage unit revenue of $410K/year (median $390K), with an estimated 5% cash-on-cash return.
- RISKVerdict B (Above average), verdict score 50/100 (higher is better).
- GROWTHNegative: net -6 franchised outlets in the latest year (7 opened, 13 closed); 31 signed but not yet open (Item 20).
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- Zoom Room Franchising, LLC
- Parent company
- Zoom Room, Inc. (ZRI) - predecessor/parent
- Ultimate parent
- Zoom Room, Inc.
- FDD Item 1, page 8 of the 2025 FDD
- Predecessor
- Zoom Room, Inc. (ZRI)
- Prior franchisor entity
- CEO title
- Chief Executive Officer
- Mark Van Wye
- Incorporated in
- Colorado
- HQ
- 11836 Teale Street, Culver City, CA 90230
- Auditor
- Kezos & Dunlavy
- Audited financials
- Franchisor revenue
- $3.6M
- vs $3.5M prior year
Overview
About
- CEO
- Mark Van Wye
- Headquarters
- CA
- Founded
- 2017
- FDD year
- 2025
- States available
- 21
Can you afford it, and what does the money buy?
Entry cost runs 17% above the typical pet services franchise.
Source: FDD 2025 · Items 5–7
FDD Item 7 · 2025 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $50K | $50K |
| Working capital (3–6 mo) | $9K | $30K |
| Equipment, build-out, other | $244K | $385K |
| Total initial investment | $303K | $465K |
Source: Zoom Room 2025 FDD, Items 5 and 7[2]. “Equipment, build-out, other” is computed as total minus disclosed line items above.
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $303K – $465K
- Middle of category vs category
- Liquid capital req'd
- $9K – $30K
- Top 40% of category vs category
- Franchise fee
- $50K – $50K
- Middle of category vs category
- Royalty
- 8.0%
- typical 6–8%
- Ad fund
- 1.0%
- typical 3–5%
- Total fee load
- 9.0%
- vs 9–13% typical
- Payback period
- 20.7 yrs
- From FDD / Item 19
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 8.0% of gross sales |
| Marketing / ad fund | 1.0% of gross sales |
| Technology fee | $150 |
| Renewal fee | $10K |
| Total fee load | 9.0% of rev |
What do units actually make?
Average unit sales run 32% below the pet services norm.
Source: FDD 2025 · Item 19
Single-unit · not modelled
Returns at a glance
An FDD discloses gross sales, not profit, and the operating costs that turn one into the other are in no filing. We publish no modelled return for Zoom Room until someone supplies them — yours, in the models below.
—
Not modelled yet
An FDD discloses gross sales, not profit. We hold no sourced figure for COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
Total invested capital · disclosed
$403K
Item 7 initial investment plus working capital, as filed — the one figure here that needs no assumption.
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
FDD-reported earnings
The FDD reports $34K as NET PROFIT. This is a disclosed figure, not our estimate — we publish no modelled profit for Zoom Room.
What one unit earns on your invested capital
Model A · Single-Unit Return
Computes unlevered return on invested capital (ROIC) for a single franchise unit, read against the 30–60% reference band · Yale SOM, Post-MBA Path Exhibit 2 (2023). Below that band a passive index fund likely outperforms; above it the franchisor has pricing power you're subsidizing.
Note: Item 19 revenue is what the franchisor discloses, and it is the top line only — gross sales are not profit. No FDD discloses the operating costs that turn one into the other, so those fields start empty and nothing is modelled until you supply them from your own lease quote, labor market and build-out budget.
Returns model · single-unit ROIC
What would one Zoom Room unit return on the cash you put in?
Illustrative category typicals — not sourced to any filing, survey or sample. Replace them with figures from franchisee validation calls before you rely on the output.
Unlevered ROIC · per unit
Your modelled return on total invested capital, before any debt financing.
—
An FDD discloses gross sales, not profit. We hold no sourced figure for COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
What 25 units return when you use SBA financing
Model B · Return on Equity: Debt-Financed Acquisition
Models a 25-unit portfolio acquisition financed with an SBA 7(a) loan. Shows equity IRR (your return on cash invested), DSCR (how safely the cash flow covers debt service), and the capital stack (SBA + seller + equity breakdown).
This is the “search fund” or “entrepreneurship through acquisition” scenario: you buy an existing multi-unit operator, use leverage to amplify returns, and either operate or hire management. The 25-unit size is the typical minimum for an SBA-backed franchise portfolio acquisition to pencil as a full-time income.
What “return on equity” means here: if you put in $500K of your own cash and the business generates enough EBITDA to pay down debt and grow, your equity IRR is the annual return on that $500K, including the value created when you eventually sell. Target IRR for a search fund is typically 25–35%.
Not modelled yet
An FDD discloses gross sales, not profit. We hold no sourced figure for COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
A 25-unit return is built on a per-unit EBITDA. Fill in the operating costs in Model A above and this model runs on that figure, or take the whole scenario to the full ROI workbench, where the portfolio and LBO models accept your own per-unit economics directly.
These models are for research and scenario planning only. Not investment advice. Actual results depend on your specific location, management, and market conditions. Consult a franchise attorney and accountant before signing any franchise agreement.
Item 19 · Source: 2025 FDD
Financial Performance
- Avg gross sales
- $410K
- Per unit, per year
- Median gross sales
- $390K
- Avg net profit
- $34K
- Reported as NET PROFIT in FDD Item 19
- Cash-on-cash
- 4.8%
- Based on NET PROFIT / investment midpoint
Gross sales are revenue before expenses — not profit. Actual owner earnings depend on rent, labor, royalties, marketing fees, and debt service.
- Item 19 type
- actual historical - Gross Revenues, expenses, and net profit for all reporting stores plus top/bottom quartile segments
- Sample size
- 48 outlets
- vs category median 12 · large
- Range (low → high)
- $167K→$932KCited, not corroborated — printed on page 61 of the 2025 FDD. Nothing else in our record independently restates or re-derives it.
- Cohort dispersion (min → max)
- Reporting year
- 2025
- Fiscal year the figures cover
- Source filing
- FDD 2025
- The FDD edition these figures were read from
- Transparency
- 9 / 10
- vs category median 4 / 10 · above
Compared against 69 Pet Services brands
Operator outlook
What the numbers say
Data-driven interpretation of this brand's financial disclosures, fee structure, and system trajectory.
Unit economics
Average unit generates $410K/year in gross sales. Revenue-to-investment ratio: 1.1x.
Fee burden
Total ongoing fee load of 9.0% (near the Pet Services median).
Disclosure
Transparency score 9/10 — this franchisor discloses detailed breakdowns (quartiles, segments, or cohort data). Buyers can model unit economics with higher confidence.
Operator retention
System expanding at 11.5% CAGR over 3 years across 60 units — operators are staying and new ones are joining.
Source: FDD Item 19 financial performance representations and publicly filed FDD data. Past performance is not indicative of future results. Verify all figures with the franchisor and current franchisees before making any investment decision.
vs Pet Services medians
How Zoom Room Compares
Category median of published Pet Services brands that report the figure; the middle half spans the 25th to 75th percentile and n counts the brands behind it. Medians are used because a few very large systems pull an average far from the typical brand. Revenue is disclosed gross sales, not profit.
Is the system healthy?
Source: FDD 2025 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 60
- Opened
- 7
- Last reporting year
- Closed
- 13
- Turnover rate
- 21.7%
- Company-owned
- 2
- Corporate units in the system
- % franchised
- 1%
- vs corporate-owned
- Net growth (3-yr)
- -9.4%
- Net unit change over 3 years
- 3-yr CAGR
- +11.5%
- Compounded over last 3 years
Last fiscal year · Item 20 exits and transfers
- Signed, not yet open
- 31
- 0.52 per open outlet · Item 20 Table 5
- Projected new
- 5
- Franchisor's next-year forecast
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 18 states with active franchisees
The Territory Map
Derived from franchisee contact records. Shows states with at least one current operator. Not where the franchisor is registered to sell new units (that data is re-extracting in a future refresh).
States derived from franchisee contact records (FDD Item 20). Shows states with at least one current operator on file. Full state registration data (Item 12) will appear on a future FDD refresh.
Where the owners are · Item 20 owner list
49 current owners across 27 states.
- CA 13
- OH 3
- TX 3
- AZ 2
- FL 2
- GA 2
- IA 2
- NC 2
- VA 2
- CO 1
- DA 1
- EV 1
- +15 more states
Counts only, from the list the franchisor prints in Item 20; 33 entries carry no state. Names and phone numbers are for your own due diligence and are not shown here.
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
- Total loans
- 47
- Loan volume
- $10.7M
- Median loan
- $273K
- 50th percentile
- Charge-off rate
- Limited · 47 loans
- Limited SBA coverage: 47 loans, rate hidden until 10 have resolved and loans reach 2% of franchised units
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- Limited · 47 loans
- 5-yr charge-off
- Limited · 47 loans
- Loans approved 2021+
- Active lenders
- 12
- Defaults
- 3
- Typical loan rate
- 8.7%
- avg rate to borrowers
- Franchised industry avg
- 10.4%
- n=1,203 loans
- Jobs supported
- 402
- 3.8 per loan
- Lender concentration
- 66%
- top lender's share
Borrower mix: 98% went to startups / new businesses, 2% to established operators
Franchise vs independent — in pet care (except veterinary) services, franchised businesses charge off at 10.4% vs 11.3% for independents — franchising is associated with 8% lower SBA default risk in this category.
Top lenders financing Zoom Room franchisees
Showing 3 of 12 lenders. The full breakdown — every lender, state distribution, interest rates & risk ratings — is in the SBA Lending Report below.
Explore lender portfolios on Bank Reports or regional data on State Reports.
Lender network · 7(a) + 504
SBA Lending Report
Full lending analysis for Zoom Room from SBA 7(a) FOIA data.
- Principal loss rate
- 2.6%
- Avg SBA guarantee
- 67%
- Avg interest rate
- 8.67%
- Avg chargeoff amount
- $94K
- Lender concentration
- 66.0%
- Job velocity
- 3.8 per $100K
- NAICS benchmark
- 4.6%
- NAICS 812910
- Jobs supported
- 402
Top SBA lendersTop lender holds 66% of loans
| # | Lender | Loans | Volume | Default % |
|---|---|---|---|---|
| 1 | The Huntington National Bank | 31 | $5.9M | 100.0% |
| 2 | Wells Fargo Bank National Association | 3 | $433K | 33.3% |
| 3 | Luminate Bank | 3 | $1.5M | N/A |
| 4 | Fifth Third Bank | 2 | $248K | N/A |
| 5 | Newtek Small Business Finance, Inc. | 1 | $168K | 0.0% |
| 6 | Byline Bank | 1 | $140K | 100.0% |
| 7 | United Community Bank | 1 | $400K | N/A |
| 8 | Mechanics and Farmers Bank | 1 | $300K | N/A |
| 9 | First Bank of the Lake | 1 | $376K | N/A |
| 10 | Mountain America FCU | 1 | $422K | N/A |
Geographic failure vector
| State | Loans | Defaults | Rate |
|---|---|---|---|
| FLFlorida | 7 | 1 | 100.0% |
| TXTexas | 7 | 0 | 0.0% |
| NCNorth Carolina | 5 | 0 | -- |
| SCSouth Carolina | 4 | 0 | -- |
| WAWashington | 4 | 0 | 0.0% |
| OHOhio | 3 | 0 | -- |
| AZArizona | 2 | 0 | -- |
| GAGeorgia | 2 | 0 | -- |
| MNMinnesota | 2 | 0 | -- |
| NYNew York | 2 | 0 | -- |
SBA 7(a) lending trend
Borrower profile
Source: SBA 7(a) + 504 FOIA loan-level data, matched by FranchiseVerdict
What could kill this investment?
Source: SBA 7(a) FOIA · FDD Items 3, 21
Risk analysis
FranchiseVerdict rating + FDD Items 3, 4, 8, 16, 21
Risk & Legal
Litigation (Item 3)
Subject: officers or affiliates. The franchisor is not a named party in these cases.
No litigation disclosed in Item 3.
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Kezos & Dunlavy
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
FY ended August 31, 2025; franchisor total revenue $2,736,639 was cited elsewhere (Item 8) representing a different-year figure - use $3,580,029 per audited FY2025 statement of operations.
Supplier relationship · Items 8 & 16
- Franchisor sells you products: Yes
- Kickbacks from required suppliers: Yes
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
- Can negotiate own supplier terms: No
Score breakdown · what drove the 50 / 100 verdict
- 01MINORNegative franchisor net worth: -$943,008
- 02MINORfinancial_distress flagged true
- 03MINORLow avg gross sales $409,758; positive net income $120,187 partially offsets
Severity inferred from the FDD text · not a regulatory classification
What are you signing up for?
Ongoing fees run about 9.0% of sales (royalty + ad fund), before rent and labor.
Source: FDD 2025 · Items 11, 12, 17
FDD Items 12, 15, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 10 years |
|---|---|
| Renewal term | 10 years |
| Territory type | Protected territory |
| Protected territory | Yes |
| Exclusive territoryℹ | No |
| Territory population | 100,000 |
| Online sales rightsℹ | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Optional |
| Non-compete (years)ℹ | 2 years |
| Non-compete (miles)ℹ | 25 mi |
| Right of first refusalℹ | Yes |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Curable defaultsℹ | 3 |
| Mandatory arbitration | Yes |
| Arbitration location | Los Angeles, California |
| Jury trial waiver | Yes |
| Governing law | California |
| Litigation count | 0 |
View Item 3 litigation summary
No litigation disclosed in Item 3.
Items 10, 11
Training & Operations
- Classroom training
- 73 hrs
- On-the-job training
- 46 hrs
- Ongoing training
- Required
- Site selection
- Master Broker / Preferred Local Broker designated by franchisor
- Franchisor financing
- Not offered
- Item 10
- POS system
- Square Terminal
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Square Terminal
Item 20 · call current owners
Franchisee Contacts
82 owners to call
Name · phone · city · state. Extracted from FDD Item 20
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Zoom Room franchise?
The total investment to open a Zoom Room franchise ranges from $303K – $465K, with an initial franchise fee of $50K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Zoom Room franchise owners earn?
According to Item 19 of the Zoom Room FDD, the average gross sales per unit is $410K. The median is $390K. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
Who owns Zoom Room?
Zoom Room is franchised by Zoom Room Franchising, LLC. Its parent company is Zoom Room, Inc. (ZRI) - predecessor/parent. The ultimate parent named in the FDD is Zoom Room, Inc.. Source: FDD Item 1, 2025 filing.
What is Item 19 in the Zoom Room FDD?
The FDD section where a franchisor may disclose financial performance of its outlets. Disclosure is optional and formats vary; figures are typically gross sales, which is revenue before expenses, not profit. FranchiseVerdict extracts these figures directly from the Zoom Room FDD and qualifies whose outlets they describe.
What is Zoom Room's franchise failure rate?
SBA 7(a) loan charge-off data is not available for Zoom Room (fewer than 10 loans on file). Charge-off rates are one way to gauge franchise risk, but not all franchise loans go through the SBA program. We recommend reviewing turnover and closure data in the FDD and speaking with current franchisees.
How many Zoom Room franchise locations are there?
As of their most recent FDD filing, Zoom Room has 60 total units in the United States, including 58 franchised units and 2 company-owned units. 7 new units were opened in the latest reporting year.
Is Zoom Room a good franchise to buy?
FranchiseVerdict rates Zoom Room as a B-grade franchise with a verdict score of 50 out of 100 (higher is better). The grade is a deterministic score built from six weighted dimensions — financial health, unit economics, unit growth, scale, legal, and transparency — then calibrated against SBA loan charge-off rates and FDD age. Transparency is one of the six, so a filing that discloses less scores lower on that dimension than one that discloses more. Our rating is based solely on publicly available FDD and government data; we recommend speaking with current franchisees before making any investment decision. This is not investment advice.
Data sourced from public FDD filings and SBA 7(a) FOIA records. Not financial advice.
For franchisors
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Data extracted from public FDD filings and SBA 7(a) loan disclosures (FOIA). This information is provided for research purposes only and does not constitute financial, legal, or investment advice. Verify all figures with the franchisor's current Franchise Disclosure Document before making any investment decision.