Verified — real FDD extraction
SBA-eligible · directory code S1994 since 2017
ZOOM ROOM
Pet Services · independent · est. —
Zoom Room is an indoor dog-training and socialization business offering group and private obedience, agility and puppy classes, plus a small retail selection of pet products. A franchisee operates a dedicated training facility, employing trainers who run classes and supervised play sessions for dogs and their owners.
ZOOM ROOM net unit count grew +172.0% from 2022–2024 per its FDD Item 20.
New to franchising? Start here
A franchise is a business where you (the franchisee) pay a company (the franchisor) for the right to open and run a location using their brand and system — think a local Anytime Fitness or Taco John's owned by a small-business owner, not the corporation.
Before you can buy in, U.S. law requires the franchisor to give you a Franchise Disclosure Document (FDD) — a long legal filing covering its fees, finances, and history. The numbers on this page come straight from that document:
- Franchise fee — the one-time cost to buy in.
- Royalty — the ongoing cut of your sales you pay the franchisor.
- Item 20 — how many locations opened and closed, the basis for our verdict (from Proven & strong down to Distressed — or Too new to judge).
The verdict
Proven & strong
Distress
Enough units and history to judge, and the record is good: growing or stable units with clean exits by the standards of its disclosed record. The main concern in the record: owners are leaving at a high rate.
Exit rate · latest year
11.5%
vs 4.7% across 18 pet services systems
Cost to open
$319K–$497K
Item 7 total investment range
SBA loan defaults
Too few resolved
54 loans exist; too few resolved to rate
Behind the verdict
the record, factor by factor · Item 20
3-yr trend · Item 20 Table 1
terminations + ceased-ops vs. all exits · Table 3
transfers vs. base · Table 3
actual vs. projected openings · Table 5
Item 19 disclosure + completeness
Systemwide units
2022–2024
Survival record
FDD Item 20 · outlet status by year
In fiscal 2024, 6 of 52 franchised outlets left the system — a 11.5% annualized exit rate, vs 4.7% across 18 pet services systems. Not every exit is a failure — but this is the measurable floor.
Show the outlet tables ↓Hide the evidence ↑
| Status (FTC) | 2022 | 2023 | 2024 |
|---|---|---|---|
| Outlets at start | 14 | 25 | 54 |
| Opened | 13 | 28 | 18 |
| Transfers | 3 | 2 | 8 |
| Terminations | 0 | 0 | 6 |
| Non-renewals | 0 | 0 | 0 |
| Reacquired by franchisor | 0 | 0 | 0 |
| Ceased — other reasons | 0 | 0 | 0 |
| Outlets at end | 25 | 54 | 68 |
| Net change | +11 | +29 | +14 |
The lender's view
SBA 7(a)/504 loan performance · FY1991–present
Banks have made 54 SBA-backed loans to ZOOM ROOM franchisees since 2013. Most are still open, so there is not yet a resolved cohort large enough to rate.
—
8 resolved · too thin to rate
—
avg. charged-off $ ÷ approved $
—
default rate × loss severity
$231,012
what recent franchisees borrowed
23 mo
approval → charge-off, defaulted loans
9 vs 1
distinct banks still lending
Charge-off rate by loan approval year (%)
Loan performance by state
SOURCE: SBA 7(a)/504 FOIA LOAN DATA (DATA.SBA.GOV), FY1991–PRESENT · MATCHED TO ZOOM ROOM BY FRANCHISE NAME · RESOLVED = CHARGED-OFF + PAID-IN-FULL
The owner's side of the deal
FDD × federal loan record
Who finances it
the Huntington National Bank
63.0% of this brand's loans
That lender charges off 10.0% of its loans to other franchise brands, vs 14.8% nationally.
Who buys it
23.1%
first-time franchise owners
The rest already owned at least one other franchise. Across the corpus, brands bought mostly by repeat operators charge off at roughly 10% versus 17% for brands sold mostly to newcomers.
Does experience help here?
Not enough resolved loans to split
Computed from 54 SBA 7(a)/504 loans to ZOOM ROOM franchisees joined to the brand's own FDD. Debt service assumes level amortization at the average disclosed term and rate. A lender's rate excludes its loans to this brand, so it reads the lender, not the brand.
What it costs — and what it drags
FDD Items 5–7 · fees, investment, royalty
Buying in means a $50K franchise fee (Item 5) and a total investment of $319K–$497K (Item 7). The franchisor publishes an earnings claim (Item 19) — read its methodology closely.
To open (Item 7)
$319K–$497K
all-in investment range
Franchise fee (Item 5)
$50K
upfront, one-time
Royalty (Item 6)
8%
of sales, ongoing
Your figure — cross-check against this brand's Item 19 and current-owner validation.
Royalty you'd pay / yr
$80K
8% of sales, before profit
Over a 10-yr term
$800K
royalties alone, excl. ad fund
This is not profit. It's the only money the FDD actually pins down — what you put in, and the royalty you owe on every dollar of sales. Your real take-home depends on labor, rent, food cost, and ramp-to-breakeven, none of which any FDD discloses.
Build a real pro-forma for ZOOM ROOM with an independent CPAModeled risk
FDD Risk Score · modeled from the public record
The public record puts this brand toward the safer end of the systems we score — but the evidence is thin, so treat it as a range, not a number.
Risk percentile (range)
12–36 / 100
Directional
Modeled SBA charge-off
9.1%
Observed SBA charge-off
37.5%
Top drivers: Single-lender dependence (lowers) · Share financed by high-loss lenders (lowers) · System size (log units) (raises) · Net unit growth (lowers). Thin loan history — treat this as a range, not a number. A linear scorecard built from this brand's own disclosure figures plus the federal loan record behind its franchisees; full spec and cross-validated accuracy on the methodology page. A score is context, not a verdict.
Distress signals
news-sourced · bankruptcies, closures, lawsuits
Franchise litigation docket: Jamey Perry v. Zoom Room, Inc. (District Court, C.D. California)
CourtListener/RECAP · 9mo ago
A broker is paid by the franchisor to place you. An independent CPA is paid by you — and the job is pressure-testing ZOOM ROOM's numbers, including talking you out of a bad deal.
Talk to an independent CPA before you buy →ZOOM ROOM franchise questions, answered from the filings
What percentage of ZOOM ROOM franchises closed last year?
In ZOOM ROOM's latest FDD Item 20 (fiscal 2024), 6 of 52 franchised outlets left the system — an annualized exit rate of 11.5% — compared with 4.7% across 18 pet services systems tracked here. That counts terminations, non-renewals, and "ceased operations — other reasons." There is no official failure rate, and not every exit is a failure, but this is the measurable floor.
How much does a ZOOM ROOM franchise cost?
Per ZOOM ROOM's 2024 FDD, buying in requires an initial franchise fee of $50K (Item 5) and a total initial investment of $319K–$497K (Item 7).
What royalty does ZOOM ROOM charge?
ZOOM ROOM charges an ongoing royalty of 8.0% of gross sales, per Item 6 of its 2024 FDD.
Does ZOOM ROOM disclose earnings (Item 19)?
Yes — ZOOM ROOM makes a financial performance representation in Item 19 of its 2024 FDD. Read it closely: franchisors choose which units and which metrics to include.