In this FDD Talk post, you’ll learn the following:

• Section I – Background information on the Zoom Room franchise opportunity, including relevant news updates

• Section II – Estimated initial investment for a Zoom Room franchise, based on Item 7 of the company’s 2020 FDD

• Section III – Initial franchise fee, royalty fee, marketing fee, and other fees for a Zoom Room franchise, based on Items 5 and 6 of the company’s 2020 FDD

• Section IV – Number of franchised and company-owned Zoom Room outlets at the start of the year and the end of the year for 2018, 2019, and 2020, based on Item 20 of the company’s 2020 FDD

• Section V – Presentation and analysis of Zoom Room’s financial performance representations, based on Item 19 of the company’s 2020 FDD, including information on the:

• 2020 fiscal year average gross revenues, cost of goods sold, total payroll, royalties, national advertising fund, software fee, merchant processing fees, office and janitorial supplies, repairs and maintenance, electricity, telephone/Internet, total utilities, local marketing, workers’ comp, liability insurance, total insurance, accounting, rent, total expenses, and net profit for the 5 franchisee-owned Dog Training Gyms (“Operating Franchisees”) that were open for more than half of Zoom Room’s fiscal year from September 1, 2019 to August 31, 2020

• year-over-year and compound annual revenue growth rate from the 2017 fiscal year to the 2020 fiscal year for the 5 Operating Franchisees and the 2 company-owned Dog Training Gyms (“Operating Company-Owned Locations”) that were open for more than half of Zoom Room’s fiscal year from September 1, 2019 to August 31, 2020

• average, median, high, and low cost to acquire a customer, average revenue per customer (first 8 weeks), historical lifetime revenue per customer, per high value customer (top 25% of customers) and per low value customer (bottom 25%), and customer retention rate for the 6 Operating Franchisees that were open and operating as of September 1, 2019

Section I – Background Information

17 Things You Need to Know About the Zoom Room Franchise

Launches New Guidelines as Locations Reopen Following COVID-19 Lockdowns

1.  In early May 2020, some Zoom Room locations began reopening as COVID-19 lockdowns eased up in some states. Zoom Room released a statement outlining updated guidelines that the brand is now following to ensure that everyone can enjoy training their dogs while feeling safe and protected. These guidelines were created following state and local laws, CDC recommendations, and input from Zoom Room’s clients, staff, and community.

2.  Zoom Room will continue to monitor any new developments as they occur, and there will be adjustments to these rules as the brand moves into the future. Zoom Room asked that all clients read the guidelines to ensure they are prepared when they return to classes. Zoom Room also has these requirements posted in the store.

3.  During Zoom Room’s initial “slow open,” clients could expect the following:

• Above All, Safety First: The facility is sanitized with a hospital-grade germicide throughout the day with special attention paid to “touch points” such as door handles, gym gates, and lockers. Zoom Room will have hand sanitizer available throughout the store for clients’ use, and staff will wash their hands between each session.

• 15-Person Store Limit: Zoom Room is practicing guest-spacing by limiting the number of individuals in the training gym to no more than 15 people at all times. The company asks that all clients limit the total number of family members who attend the session to no more than two per dog. Employees may ask additional clients to wait in the lobby or outside if the location reaches capacity during training.

• Face Covering Requirements: As an added precaution to protect clients and staff, all Zoom Room clients and staff must wear a face covering that covers their mouth and nose at all times while in the facility. If clients are unable to wear a mask due to medical conditions, please speak with a staff member to discuss alternative options to ensure safety for everyone. Zoom Room asks that clients work on desensitizing their dog to people in masks so they are comfortable with this transition. If clients are not feeling well, please stay home.

• Orientation for New Clients: Zoom Room welcomes any new client who has joined via virtual lessons. Zoom Room asks that any new clients who have not yet visited the facility schedule an Orientation session. Clients should reach out to the trainer who conducted their lesson for more information. While Orientation is typically done in person, Zoom Room is now offering phone sessions to ensure clients get the information they need to begin in-person classes.

• Reduced Class Capacity: For everyone’s safety, Zoom Room’s class size has temporarily been reduced based on class type. Puppy Preschool is reduced to 6 dogs (previously 10-12), Puppy Training+ is reduced to 6 dogs (previously 8), and all adult Obedience and Agility classes will be 5 dogs (previously 6). If classes are full when a client signs up, they can add themselves to the wait list. This will allow Zoom Room to adequately prepare for the demand during the upcoming weeks and add classes as necessary. Private sessions are continuing as normal. Zoom Room will continue to be flexible with expiration dates if clients are unable to get a spot in class, or do not yet feel comfortable returning. Clients can reach out to staff with any questions

• “2-6” Rule: Zoom Room asks that clients be considerate of others and respect the space of its clients and staff. While Zoom Room has always practiced its “2-6” rule and asked that dogs do not meet during class, Zoom Room wants to place further emphasis on the importance of keeping at least six feet of space between each other and keeping dogs within two feet of their assigned spot in the class. Clients should understand that trainers will be limiting their interaction with dogs and they will not be doing any activities that require direct contact with each other. Zoom Room will not be holding playgroups at this time.

• Puppy Preschool Only: Zoom Room is excited to be able to offer a safe socialization option to all the new puppy owners. The brand has adjusted its usual Preschool curriculum to ensure minimal contact. Zoom Room will allow playtime to happen during class; however, the brand is also limiting this class to four dogs to ensure trainers can manage it safely. All play will be supervised by the trainer – Zoom Room asks that clients allow them to intervene and only step in and touch their own dog if asked. If clients are not comfortable with playtime, Zoom Room completely understands and clients are welcome to step out of the gym for these short 5-minute play sessions.

• Cadaver Bar: Zoom Room is asking that clients do not serve themselves from the cadaver bar like they are used to. If clients would like to purchase an item that is displayed in the glass jars, please ask a staff member to grab these items for them.

• Checking Out: Zoom Room is currently not accepting cash as payment for purchases. To make things easier for clients and staff, clients can log into their account and save their credit card there. That way, staff will not need to handle any cards. If clients would prefer to not save a card, they will be able to swipe their own card. Clients are asked to remember to keep space between themselves and other clients while checking out.

• Curbside Pickup: Zoom Room will continue to offer curbside retail pickup during normal business hours. Please call or email ahead to ensure the location has items in stock and staff are able to get clients their order together before they arrive.

Offers Remote Training

4.  In late March 2020, after most states went into lockdown as the COVID-19 pandemic hit the United States, Zoom Room began offering private dog training sessions via remote video. Clients and their dog could participate in the comfort of their own home, at a time convenient to the client.

5.  Sessions were 30 minutes long. The cost was $35, or four sessions for $125. Any clients with existing credits could convert them to use for remote training.

6.  Each session was tailored to the client’s exact and unique needs. Zoom Room can help with puppy training, basic obedience, tricks, behavioral issues, and more. Clients could book a remote session on Zoom Room’s website.

Opens First Location in Arizona

7.  In late August 2020, Zoom Room celebrated the opening of ts Arrowhead location in Peoria. Zoom Room Arrowhead is the Los Angeles-based brand’s first location in Arizona. Zoom Room Arrowhead is owned and operated by long-time Phoenix resident Colin Elliott.

8.  Elliot shares a lifelong passion for baseball with his father. Elliot worked at a major league baseball front office and regularly traveled to games around the country with his father. During these travels, they often discussed their other great shared passion: dogs. When the two encountered Zoom Room, they decided to go into business together, allowing Elliot to be his own boss and to share his enthusiasm with the Arrowhead community.

9.  In celebration of the opening, Zoom Room Arrowhead hosted a series of safe, socially-distanced events, which consisted of several 45-minute Intro to Dog Agility Training classes for $5 on August 22 and 23 and four free activity-filled mini-parties on the afternoon of August 22. Guests attending the August 22 afternoon mini-parties enjoyed an ice cream sundae cart, dog-friendly photo booth, Doggy Donut decorating, and bobbing for hot dogs (for the dogs!).

10.  Masks and reservations were required for the agility classes and mini-parties. Classes were capped at 6 dogs while the mini-parties were capped at 20 dogs to allow for proper social distancing in the 4,000 square foot facility. Staff members controlled the flow of traffic at each event to prevent bottlenecking between stations.

11.  For each dog that registered and attended the mini-parties, Zoom Room Arrowhead donated $10 to the Arizona Small Dog Rescue, a local non-profit.

12.  Elliot said, “Starting this new chapter of my life, I am excited to bring this dog training business to the Peoria community and to welcome all puppies, older pooches and their people to experience all Zoom Room has to offer. I hope the community takes to this fun, dually-beneficial concept that bonds humans and their dogs.”

13.  Zoom Room, which is the author of the No. 1 best-selling dog training book in America, continues to demonstrate impressive growth despite the ongoing COVID-19 pandemic, as many people have adopted new dogs and puppies in recent months. The brand’s training centers have been a godsend for these pet parents, as they provide a safe and healthy environment for them to socialize and train their furry companions.

14.  Some of the safety measures Zoom Room has implemented at its locations – Arrowhead included – are smaller group sizes for classes, only two staff members working at a time, frequent cleaning and sanitizing with hospital grade germicide, mask requirements, HEPA filters, and encouraging social distancing of six feet or more, which happens to be the standard leash length for dog reactivity.

Company History

15.  Zoom Room, which is based out of Culver City, California, was founded in 2007. The company takes a unique approach to dog training, focusing on training with dog owners and also giving the animals a place to exercise and socialize. Additionally, Zoom Room’s services focus on helping dog owners strengthen their bond with their dog. Zoom Room locations also serve as event spaces for birthday parties and Doggy Disco fundraisers for rescue organizations.

16.  Zoom Room began franchising in 2009 and growth has remained slow and steady over the past decade. Zoom Room also sells its own line of retail products, which now account for as much as 40% of gross revenue at its stores. Today, there are Zoom Room locations in a handful of states.

Entrepreneur’s Franchise 500

17.  Zoom Room did not rank on Entrepreneur’s 2020 Franchise 500 list.

Section II – Estimated Costs

• Please click here for detailed estimates of Zoom Room franchise costs, based on Item 7 of the company’s 2020 FDD.

Section III – Initial Franchise Fee, Royalty Fee, Marketing Fee, and Other Fees

• Please click here for detailed information on Zoom Room’s initial franchise fee, royalty fee, marketing fee, and other fees, based on Items 5 and 6 of the company’s 2020 FDD.

Section IV – Number of Franchised and Company-Owned Outlets

Franchised

2018

• Outlets at the Start of the Year:  8
• Outlets at the End of the Year:  6
• Net Change:  -2

2019

• Outlets at the Start of the Year:  6
• Outlets at the End of the Year:  6
• Net Change:  0

2020

• Outlets at the Start of the Year:  6
• Outlets at the End of the Year:  8
• Net Change:  +2

Company-Owned

2018

• Outlets at the Start of the Year:  2
• Outlets at the End of the Year:  3
• Net Change:  +1

2019

• Outlets at the Start of the Year:  3
• Outlets at the End of the Year:  3
• Net Change:  0

2020

• Outlets at the Start of the Year:  3
• Outlets at the End of the Year:  3
• Net Change:  0

Section V – Financial Performance Representations (Item 19, 2020 FDD) and Analysis

• The information in this Item 19 includes certain historical financial information provided by all Zoom Room Franchised Businesses and company-owned Zoom Room businesses that were open and operating as of September 1, 2019.

Part 1 – Dog Training Gym Financial Performance Analysis for Operating Franchisees (September 1, 2019 to August 31, 2020)

• The reporting period for Part 1 is from September 1, 2019 through August 31, 2020.

• Part 1 includes all five Operating Franchisees that were open for more than half of Zoom Room’s fiscal year. These locations include Austin, Texas; Seattle, Washington; Sherman Oaks, California; Trophy Club, Texas; and Virginia Beach, Virginia (“Operating Franchisees”).

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