Bottom line
- Total investment $64K – $188K including a $45K franchise fee, 8.0% ongoing royalty.
- Average unit revenue of $206K/year (median $203K).
- Rated STRONG with a risk score of 52/100. SBA loan default rate of 0.0% across 24 loans (below the industry average).
- Auditor disclosed a going-concern note — flagged doubt about the franchisor's ability to continue operations. Verify against the latest FDD.
Item 1 · who you're contracting with
The Franchisor
Yale framework · single-unit ROIC
Returns Analysis
Pulls Item 7 (investment) and Item 19 (revenue) from this brand's FDD into the Yale unlevered-ROIC formula. Override any input to stress-test it against your own assumptions.
The model · Yale framework
What would one Zoomin Groomin® unit return on the cash you put in?
Unlevered ROIC · per unit
20%
Below typical band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 Zoomin Groomin® units return on equity?
Equity IRR · 5-yr
49.9%
7.57× MOIC
Year-1 DSCR
1.88×
EBITDA ÷ debt service
Equity required
$248K
on $1.2M purchase
Total debt
$991K
SBA $0.6M + senior + seller note
Overview
About
Franchisees operate mobile and/or brick-and-mortar pet grooming salons, providing bathing, nail trimming, haircuts, and full-service grooming for dogs and cats. Day-to-day operations include scheduling appointments, managing grooming staff, maintaining equipment, handling client relations, and inventory management for grooming supplies and products.
Item 7 · what it costs
The Vitals
Item 19
Financial Performance
Item 20 · unit dynamics
The Growth Chart
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 17 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 phone area codes (Item 20). Approximate — ported numbers may show the original state, not the franchisee's current location.
Government records
SBA Loan Data
Aggregated from SBA 7(a) loan disclosures, public data unique to FranchiseVerdict.
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Zoomin Groomin presents elevated risk due to leadership litigation history, missing profitability data, unsustainable unit growth metrics, and franchisor going concern status, despite reasonable territory protection.
Score breakdown · what drove the 52 / 100 rating
- 01HIGHCEO/Chairman has extensive litigation history from Liberty Tax tenure, including securities class actions, DOJ settlement, and California consent order—raises governance and ethical concerns
- 02MEDAverage Net Income not disclosed in FDD Item 19, preventing accurate ROI calculation and hiding potential profitability issues
- 03MINORExplosive unit growth of 366.7% YoY is unsustainable and suggests possible recruitment-driven model rather than organic profitability; typical mature franchises grow 10-25% annually
- 04MINORFranchise fee ($45,000) represents 21.8% of low average revenue ($206,495), creating thin margins before 8% royalty and operating costs
- 05HIGHGoing Concern status indicates financial instability at franchisor level, threatening support infrastructure and system viability
- 06MINOREight lawsuits plus governmental action against leadership create reputational and operational risk; pattern suggests potential compliance issues
Severity inferred from the FDD text · not a regulatory classification
FDD Items 5, 6, 12, 17 · continued from Risk & Legal
Contract & Territory Detail
Item 11
Training & Operations
Item 20
Franchisee Contacts
Phone numbers extracted directly from this brand's FDD Item 20. After purchase, you'll also receive a list of validation questions tailored to this brand.
Franchisee contacts
19 numbers
One-time purchase · CSV download · Validation questions included
FDD download
Zoomin Groomin® · FDD (2024) PDF