Is Zoomin Groomin allowed to engage in business activities not expressly prohibited by the Franchise Agreement?
Zoomin_Groomin Franchise · 2025 FDDAnswer from 2025 FDD Document
E. Reserved Rights
We, our parent, and our affiliates reserve all rights not expressly granted in the Franchise Agreement. For example, we, our parent, and our affiliates have the right to:
- (i) use other channels of distribution, such as the Internet, catalog sales, telemarketing, or other direct marketing sales, to solicit or accept customers within your Territory using our principal trademarks (or another trademark) without any compensation to you;
- (ii) implement cross-territorial protocols and other guidelines applicable to such situations as group advertising buys by multiple franchisees which may extend into multiple territories, solicitation of orders of individuals who may reside in one Territory, yet work in another, and other cross-territorial situations;
- (iii) establish and operate, and grant rights to others to establish and operate a Franchised Business or similar businesses at any locations outside of the Territory and on any terms and conditions we deem appropriate;
- (iv) own, develop, acquire, be acquired by, merge with, or otherwise engage in any tran
Source: Item 9 — 01. Financial Statements and Exhibits. (FDD pages 68–156)
What This Means (2025 FDD)
According to the 2025 Zoomin Groomin Franchise Disclosure Document, Zoomin Groomin reserves all rights not expressly granted to the franchisee in the Franchise Agreement. This means that Zoomin Groomin and its affiliates retain the right to engage in business activities that are not specifically prohibited in the agreement. These reserved rights can have a significant impact on a franchisee's business.
Zoomin Groomin can use other channels of distribution, such as the Internet, catalog sales, telemarketing, or other direct marketing sales, to solicit or accept customers within a franchisee's territory using their principal trademarks (or another trademark) without providing any compensation to the franchisee. They can also implement cross-territorial protocols and guidelines for situations like group advertising buys, solicitation of orders from individuals who may reside in one territory but work in another, and other cross-territorial situations.
Furthermore, Zoomin Groomin has the right to establish and operate, and grant rights to others to establish and operate, a Zoomin Groomin Franchised Business or similar businesses at any locations outside of the franchisee's territory and on any terms and conditions they deem appropriate. They can also own, develop, acquire, be acquired by, merge with, or otherwise engage in any transaction. This broad reservation of rights allows Zoomin Groomin to adapt to market changes and pursue new business opportunities without being restricted by the specific terms granted to franchisees, potentially creating competition or impacting a franchisee's market share.