Zoom Room Franchise Costs: Estimated Initial Investment (Item 7, 2022 FDD)
1. Initial Franchise Fee: $49,500
2. Real Estate/Rent: $13,500 to $27,000
- This estimate is based on a Zoom Room Franchised Business that is 3,000 square feet in size and includes three months’ rent.
- In Zoom Room’s experience over the last several years, the average rent for a Zoom Room Franchised Business, including all common area maintenance and triple net lease expenses, is estimated to range from $18 per square foot per year to $36 per square foot per year. Your actual rent payments may vary, depending upon your location and your market’s retail lease rates.
- Zoom Room Franchised Businesses will typically be 2,800 to 3,200 square feet in size.
- Zoom Room Franchised Businesses are typically located in an area that has easy access to highways or major thoroughfares and adequate parking and may be located in retail Zoom Room Franchised Businesses or in stand-alone buildings on major streets with excellent visibility.
- If you purchase, instead of lease, the premises for your Zoom Room Franchised Business, then the purchase price, down payment, interest rates, and other financing terms will determine your monthly mortgage payments.
3. Security and Utility Deposits: $4,500 to $12,500
- This estimate includes the lease deposit required by the landlord and security deposits required by utility companies.
- In Zoom Room’s experience, landlords for most Zoom Room Franchised Businesses require one month of rent as the lease deposit.
- The low range of these figures reflects an estimate of one month of low rent with no utility deposit and the high range of these figures reflects an estimate of one month of high rent and a $3,000 utility deposit.
4. Leasehold Improvements: $144,000 to $171,000
- Building and construction costs will vary depending upon the condition of the premises for the Zoom Room Franchised Businesses, the size of the premises, and local construction costs.
- This estimate does not include construction allowances that may be offered by the landlord, or the extent and quality of improvements desired by you over and above Zoom Room’s minimum requirements.
- In Zoom Room’s experience over the last several years, typical leasehold improvements are estimated to range from $48 per square foot to $57 per square foot, with an average of $53 per square foot.
- The overwhelming majority of landlords (78%) have provided tenant improvement allowances for franchisees. The average tenant improvement allowance was $24 per square foot, resulting in an average savings of $82,300 in leasehold improvement costs.
5. Initial Inventory: $12,000 to $24,000
- You must purchase an initial inventory of pet retail products. Costs vary based upon the size and location of the Zoom Room Franchised Business, suppliers, and other related factors.
- In general, a Zoom Room Franchised Business with greater visibility and longer operating hours will require larger square footage allocated to retail products, and therefore a larger investment in initial inventory.
6. Office Equipment and Supplies: $4,400 to $8,000
- This includes phones, miscellaneous office equipment, and supplies.
7. Travel and Lodging: $1,500 to $4,000
- Zoom Room provides training at its corporate office in greater Los Angeles, California or at another location designated by Zoom Room. You must pay for airfare, meals, transportation costs, salaries, benefits, lodging, and incidental expenses for all initial training program attendees.
- Initial training is provided at no charge for up to two people, one of which must be a principal owner; if additional initial training is required, or more people must be trained, an additional fee may be assessed.
- This estimate includes the travel and living expenses, including airfare, that you will incur when you and one other person attend the initial training program. It does not include any wages or salary for you or your employees during this training.
8. Signage: $8,000 to $20,000
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- This amount includes the cost of both interior and exterior signage.
- The type and size of the signage you actually install will be based upon the zoning and property use requirements and restrictions. There could be an occasion where signage is not permitted because of zoning or use restriction.
- The signage requirements and costs will vary based upon the size and location of the Zoom Room Franchised Business, local zoning requirements, landlord requirements, and local wage rates for installation.
9. Furniture, Fixtures, and Equipment: $17,800 to $25,800
- This includes computer hardware and software, POS, agility equipment, seating, tables, and other furniture and equipment necessary to begin the operation of your Zoom Room Franchised Business.
10. Grand Opening: $2,000 to $4,000
- You must spend a minimum of $2,000, but may spend as much as $4,000, prior to the opening of the Zoom Room Franchised Business. This fee will be paid to suppliers of your grand opening materials.
11. Subscriptions and Dues: $350
- You must subscribe to certain national organizations before you open your Zoom Room Franchised Business, and you must pay annual dues to such national organizations.
12. Licenses and Permits: $0 to $4,000
- State and local government agencies typically charge fees for occupancy permits, operating licenses, and construction permits. Your actual costs may vary from the estimates based on the requirements of state and local government agencies.
13. Professional Fees: $1,800 to $21,200
- You may need to employ an attorney, accountant, architect, or other consultant to assist you in establishing your Zoom Room Franchised Business. These fees may vary from location to location depending on the prevailing rates of local attorneys, accountants, architects, and consultants.
14. Software Set-up Fees: $400
- There is a one-time set-up fee of $400 due 60 days before you open or at such time as you request access.
15. Weekly Software Fee: $2,160
- A weekly fee, which currently is $108, begins once your software has been provisioned to you. These numbers reflect provisioning software 60 days prior to opening plus the first 3 months of operations.
16. Insurance: $750 to $3,500
- You must obtain and maintain, at your own expense, the insurance coverage Zoom Room requires, and satisfy other insurance-related obligations.
17. Additional Funds (3 months): $9,000 to $30,000
- These amounts represent Zoom Room’s estimate of the amount needed to cover your expenses for the initial three-month start-up phase of your Zoom Room Franchised Business. They include payroll costs, utilities, and other various and miscellaneous start-up costs, during the Zoom Room Franchised Business’s first three months of operation, but not any draw or salary for you.
- These figures do not include standard pre-opening expenses, Royalties, or National Advertising Fund contributions payable under the Franchise Agreement, or debt service, and assume that none of your expenses are offset by any sales generated during the start-up phase.
18. Total Estimated Initial Investment: $271,660 to $407,410
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