factual

When is the Annual Budget report due to Zoomin Groomin?

Zoomin_Groomin Franchise · 2025 FDD

Answer from 2025 FDD Document

6.1. Definition 15
6.2. Confidentiality 15
6.3. Use 16
6.4. Storage 16
6.5. Return 16
7. Tra nsfer 16
7.1. Assignment by Us 16
7.2. Transfer by You 16
7.3. Joint Tenancy 16
7.4. Transfer to Controlled Entity 16
7.5. Transfer within an Entity 17
7.6. Right of First Refusal 17
7.7. Death or Incapacity 18
7.8. Transferee Requirements 18
8. Ter mination 19
8.1. Effect of Termination
8.2. Termination by Us 19
8.3. Termination by Us With the Opportunity to Cure 19
8.4. No Refund of Initial Fee
8.5. Post Termination Obligations 20
8.6. Non-Compete and No Solicitation
8.7. Purchase of Business Assets on Non-Renewal or Termination
8.8. Waiver of Bond 21
8.9. Severability
9. Dis pute Resolution 21
9.1. Internal Resolution 21
9.2.
9.3.
9.4. Arbitration Exclusions. 23
9.5. Limitations and Waivers 23
9.6. Governing Law 23
9.7. Jurisdiction and Venue 24
10. Ger neral 24
10.1. Entire Agreement 24
10.2. Modification 24
10.3. Third Party Beneficiaries 24
10.4. Survival 24
10.5. Severability Clause 24
10.6. Notices 24
10.7. Acknowledgements 25
10.8. Release of Prior Claims 25
10.9. Counterparts 25
10.10 Signature 26
Schedules
Sche dule 1 Territory dule 2 Automatic Bank Draft Authorization dule 3 Telephone & Internet Assignment
, dule 5 Release
Sche dule 6 State Addenda to the Franchise Agreement #### FRANCHISE AGREEMENT

SINGLE UNIT

This contract ("Agreement") is between Zoomin Groomin USA LLC ("Zoomin Groomin", "we", "us", or "our") the entity and all Signators identified on the signature page, in your personal capacity, (collectively "Franchisee", "you", or "your").

RECITALS

Zoomin Groomin has developed a system ("Franchise System") to deliver mobile pet grooming services and related products (collectively the "Services"). The Franchise System utilizes prescribed marketing techniques and operating procedures to deliver outstanding service to pet owners ("Clients").

We seek to identify and recruit candidates with the ability to deliver outstanding Client service in a defined Territory who are willing to own at least one Franchised Business.

Franchisee seeks to use the Franchise System and the Services to profitably deliver an outstanding Client experience.

For mutual promises expressed in this Agreement, along with other valuable consideration, the receipt of which is acknowledged, Zoomin Groomin and Franchisee (collectively "the Parties") will be bound as follows:

1. Scope

1.1.Franchise Relationship

A. Grant of Franchise

Zoomin Groomin grants you the right to operate a company ("Franchised Business" or "Unit Franchise") using our System and our Marks to deliver Services solely within the geographic boundaries identified in Schedule 1 (the "Territory") during the Term by and through the Franchisee Business Entity identified on the Summary Page and signature page of this Agreement (or as a sole proprietor or partnership if there is no business entity), subject to the terms and conditions of this Agreement.

B. Independent Contractors

Your relationship with us is that of an independent contractor. This Agreement does not create a partnership, joint venture, or any other entity between the Parties. Neither Party has a fiduciary duty or other special duty respect to the other party. You are not a third-party beneficiary to any contract between us and any other franchisee.

C. Your Employees

As a separate Franchise Business, you have sole and exclusive control over your employees. Neither you nor your employees and agents may make a claim as employees or agents of us for any purpose including participation in an employee benefit plan, stock option program, or workers compensation law.

D. No Unauthorized Commitments

Similarly, you will not make any promises, guarantees or warrantees to any third party that would create a binding obligation for us without our prior written consent.

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 transaction with another businesses (competitive or not), which may offer products and services like your Franchised Business and may have one or more competing outlets within your Territory, however, we will not convert any acquired business in your Territory to a franchise using our primary trademarks during the Term of your Franchise Agreement;
  • (v) operate or franchise a business under a different trademark which such business sells or will sell goods or services like those you will offer, anywhere;
  • (vi) negotiate purchase agreements with vendors and suppliers which we reasonably believe are for the benefit of our franchisees; and,
  • (vii) engage in any other business activities not expressly prohibited by the Franchise Agreement, anywhere.

1.2.Term and Renewal

A. Term

This Agreement will commence upon its Effective Date and will last for a term of ten (10) years (the "Term").

B. Renewal and Subsequent Renewals

Upon the completion of the Term, or a renewal term as the case may be, if you are in compliance with this Agreement and meet other conditions for renewal, you may enter into a new contract, on the then current form of the Franchise Agreement. We will neither change your Territory nor Royalty rate in your renewals. The current form will not contain any changes of a material nature without your consent. If you wish to renew this Agreement, you must: notify us in writing at least 90 days before the expiration of this Agreement; and execute a general release of all claims you may have against us in our then current form.

1.3.Territory

A. Territory Description

Schedule 1 defines your Territory by zip codes, political, or geographic boundaries. You may operate one or more mobile pet grooming van(s) (each as an "Outlet" or 'Vehicle") in your Territory.

B. Our Development

a.) Right to Develop, Acquire, or be Acquired by Other Businesses

We can develop, acquire or be acquired by, or engage in any other transaction with other businesses, companies and/or units (competitive or not), that are or will be located anywhere, including arrangements where other units are (or are not) converted to our System or other format, or in which company-owned, franchised or other businesses (including your Franchised Business) are (or are not) converted to another format (whether competitive or not), or both, and is maintained as the same concept, as a new concept, or as a separate concept. You must fully cooperate with any of these conversions, at your sole expense. However, during this Term of this Agreement we will not convert any acquired business in your Territory to a franchise using our primary trademarks nor require you to convert to another system already operating in your Territory.

b.) Other Brands

We or an affiliate may make sales within your Territory using trademarks different from the ones you will use under this Agreement or through different channels of distribution. For example, our affiliate Purely Pets LLC d/b/a Salty Dawg and their franchisees offer brick-and-mortar pet grooming services and related products under the Salty Dawg trademarks. Additional competitive brands may by acquired or developed by us, our parent, or our Affiliates in the future. These brands may operate and offer competitive products or services regardless of their proximity to your Protected Territory or Approved Location.

c.) Area Representatives

We offer an area representative franchise opportunity through a separate franchise disclosure document. Area representatives find, solicit, and recruit prospective franchisees to operate a franchised business like yours. Area representatives may also support franchised business within their area representative territory through marketing and operating assistance. Your Territory may now, or in the future, be within an area representative's territory. We will provide you with contact information for the area representative with area representative rights in the Territory upon request (if applicable to you).

C. Services to Clients Outside Territory

a.) Permission

You may not provide Services to any Client or in any manner operate your Franchised Business outside of your Territory without our prior written permission. We may grant or deny permission in our sole judgment. Any such permission will be limited in scope and duration. In no event will you be permitted to offer Services to any Client or otherwise operate your Franchised Business within any territory owned by another unit franchisee of ours. Any permission we grant for you to operate outside of the Territory will be freely revocable by us for any reason or no reason at all.

b.) Acknowledgment

You acknowledge that any permission granted pursuant to this Section 1.3.C. is only temporary in nature and the only way for you to gain protection over any geographical region outside of your Territory is to purchase franchise rights over such geographical area pursuant to the then-current disclosure document and franchise agreement. By offering Services or otherwise operating outside of your Territory, you acknowledge and accept that you may cultivate business relationships that must be transitioned to someone else. You acknowledge that any undeveloped area could be sold to a new franchisee at any point in time, and you have no right of first refusal in such area. By requesting permission and by offering Services or otherwise operating your Franchised Business outside of your Territory, you agree to follow our plans and guidance for transitioning business to a new owner upon notification by us that a new franchisee has acquired the right to operate within such area.

c.) Procedure on Withdrawal of Permission

You will immediately stop providing Services to Clients located outside of your Territory and stop all activities associated with the operation of your Franchised Business outside of the Territory upon notification from Zoomin Groomin that a new franchisee has purchased franchise rights over such territory. Furthermore, you will provide a list of all Clients served by you in such area to the new franchisee and make commercially reasonable efforts to transition all business to the new franchisee. Time is of the essence when complying with a transition to a new franchisee.

d.) Consequences of Operating Without Permission

Operating outside of your Territory without our permission is grounds for termination, but termination is not our exclusive remedy. In the event you operate outside the rights and permissions granted in this Section 1.3 within the territory of another franchisee of ours, then any funds you obtain will be passed over to the new franchisee as provided in Section 1.7 (D) of this Agreement.

1.4.Operation

A. Start

You must commence operations within your Territory within thirty (30) days of receipt of your initial Vehicle. If you do not, more time will be given (up to a maximum of twelve (12) months), but you will remain subject to minimum Royalty Fees during the extension.

B. Repair

You will take all commercially reasonable efforts to maintain and keep your Vehicle's body and mechanical components in a pristine and safe condition. If, for whatever reason, you are unable to safely operate your Vehicle(s) or it otherwise becomes unavailable for more than ten (10) business days, then you will repair or replace it as soon as practical. If it remains out of service for more than thirty (30) days, then we can terminate without any refund to you.

C. Replace

Vehicles kept past their lifecycles are less efficient and incur greater fuel costs and maintenance costs. This leads to breakdowns, closures, and unhappy employees and Clients. You will plan for vehicle replacement as reasonably needed during the Term.

1.5.Additional Territories

We may grant you additional franchise territories if available in your area and we feel you have the time, energy, capital, and management structure to be able to successfully open and operate more outlets. You do not have options, rights of first refusal, or similar rights to acquire additional franchises.

1.6.Minimum Requirements

Continuation of your Territorial rights does not depend on achieving a certain sales volume, growth or market share percentage; however, you will be subject to minimum monthly royalty payments for the entirety of this Agreement. A year will include each fiscal year (including any partial year) ending on December 31.

1.7.Dual Distribution

A. Protected Territory

You will not receive an exclusive territory. You may face competition from other franchisees, from outlets that we own, or from other channels of distribution or competitive brands that we control. However, you will receive a protected territory, meaning a geographical area within which we promise not to establish a Zoomin Groomin company owned or franchised outlet. You may not accept orders from consumers to provide Services outside of your Territory, nor may you use other channels of distribution, such as the Internet, catalog sales, telemarketing, or other direct marketing, to make sales outside your Territory without our prior written approval as provided in Section 1.3 (C) of this Agreement.

B. Limitations on Exclusivity

Your right to exclusivity is limited by our Reserved Rights under Section 1.1. (E) of this Agreement and this Section 1.7. You may also face competition from other franchisees, outlets that we own, other channels of distribution or competitive brands that we control for a Client that resides in your Territory.

C. Other Brands

We or an affiliate may make sales within your Territory using trademarks different from the ones you will use under this Agreement. As of the Effective Date, we and our parent plan to establish (or acquire) and operate or franchise a business under a different trademark which will sell goods or services similar to those you will offer. Under this plan, franchisees will offer pet grooming services through brick-and-mortar locations under a different trademark. As the new franchise system develops, the new franchisor or its franchisees who use the different trademark will solicit and accept orders within your Territory.

D. Profit Passover

We are not obligated to pay compensation to you for soliciting or accepting sales from a Client inside your Territory. However, we will normally direct all inquiries for mobile pet grooming from within your Territory to your Franchised Business. Should you (i) provide Services or otherwise operate your Franchised Business in another franchisee's territory or (ii) fail to strictly comply with Section 1.3 (C) within fifteen (15) days after being advised that our permission to provide Services or otherwise operate the Franchised Business outside the Territory is revoked because a new franchisee purchased certain rights, then you will pay to the franchisee in whose territory such Services were provided an amount equal to 100% of all grooming and convenience fees charged. Furthermore, you must notify such franchisee who has rights in such territory and provide payment to them within ten (10) days of receipt of payment by you.

1.8.Advertising

A. Grand Opening Advertising

We do not require you to spend a certain amount on Grand Opening Advertising; however, we recommend that you spend between $500 and $5,000 on your initial local advertising which includes local advertising and promotion of your Franchise Business from one month before opening through three months after you open. We recommend you spend a minimum of $1,200 per year on local advertising.

B. Local Advertising and Promotions

Your advertising and promotions will conform to the following requirements:

    1. You will advertise and promote only in a manner that will reflect favorably on us.
    1. You will participate in all promotional programs that we create, offer or advertise.
    1. Your advertising must comply with federal, state, and local laws.

C. Advertising Fee

You will contribute 2% of your Gross Revenues into our Advertising Fund.

D. Fund

Franchisor owned outlets do not have to contribute to the Advertising Fund, but may do so. We administer the Advertising Fund. The Fund is not audited. Unaudited financial statements of the Advertising Fund will be made available to you upon written request. If not all Advertising Fees are spent in the fiscal year in which they accrue, we may carry over those fees and apply them to the next fiscal year. We may use Advertising Fees to solicit new franchise sales.

1.9.Our Obligation to Conduct Advertising

We use monies in the Advertising Fund to advise you in the conduct of advertising or conduct advertising ourselves using online, radio, television, direct mail, billboards, print or other advertising. We may use local, regional, or national advertising. We may produce advertising material in-house or though outside agencies. We are not required to spend any amount on advertising in the area or Territory where you will be located.

A. Corporate Website

We will develop and maintain a website that contains your location's contact information.

B. Digital Marketing

We may create, operate and promote websites, social media accounts (including, but not limited to, Facebook, Twitter, and Instagram), applications, digital advertising (including pay-per-click and display ads) or other means of digital marketing to promote the brand, Franchised Business, Marks and franchise opportunities.

We have the sole right to control all aspects of any digital marketing including all digital marketing related to your Franchised Business.

C. Digital Campaigns

We may negotiate contracts with vendors such as Google AdWords.

If you choose to participate, you must pay your pro-rata share either directly to the vendor or reimburse us if we are paying the vendor.

D. Print Material

We supply you with templates of fliers, coupons, and other print material.

E. Use of Your Own Advertising Material

You must use our advertising templates or if you wish to use your own advertising materials you may do so if:

    1. you submit them to us;
    1. they conform to the Manual;
    1. they adhere to federal, state and local law; and
    1. we approve them in writing. If our written approval is not received within fourteen (14) days that we receive the request, then the material is deemed disapproved.

F. Business cards

You may purchase business cards to use in the operation of your Franchise Business in accordance with the Manual.

G. Private Websites

You are not allowed to have an independent website or obtain or use any domain name (Internet address) for your Franchised Business without first obtaining our written approval.

H. Social Media

Any social media used to promote the Franchised Business must be in accord with our Manual.

I. Publicity

Except as required by law, you may not make any press release or other public announcement respecting the subject matter of this Agreement without our written consent as to the form of such press release or public announcement.

1.10. Trademarks

A. Use of our Marks

We allow and require you to use our trademarks and service marks ("Marks") to hold out your Franchised Business to the public. You will use only our Marks as we develop them for this purpose. Use of our Marks must be in accordance with our Manual.

B. Changes to the Marks

We may update or change our Marks. We may replace, modify, or add to our Marks. If we replace, modify, or add additional Marks, you will update or replace your supplies, etc. to reflect the new Marks, at your expense, in the time frame we provide at the time of such an update.

C. Marks Within a Company Name

You may not use the words "Zoomin Groomin" or any confusingly similar words as any part of the name of a corporation, LLC, or other entity. However, "Zoomin Groomin" followed by your entity number, or such other designation as we will specify, will be your "doing business as" name for an entity which owns this franchise, sometimes also called your "assumed name," "trading as" name, or "fictitious name."

D. No confusingly similar marks

You will avoid using any Marks that could be confused with our Marks.

E. Infringement Claims

If you learn of any claim against you for alleged infringement, unfair competition, or similar claims about the Marks, you must promptly notify us.

F. Control of Proceedings

We have the sole right to control any administrative proceedings or litigation involving a trademark licensed by us to you.

G. Name and Likeness

You give us permission to use your name and likeness in all forms and media for advertising, trade, and any other lawful purposes.

Fees

2.1.Initial Franchise Fee

Upon execution of this Agreement, you will pay us an Initial Franchise Fee as stated on the Summary Page.The Franchise Fee is fully earned when you sign this Agreement and is not refundable under any circumstances.

2.2.Technology Fee

You will pay an ongoing weekly Technology Fee throughout the Term. On the Effective Date, the Technology Fee charged by us is $15 per week. The Technology Fee is not tied to any specific service, but we intend to provide each Franchised Business with an email address, telephone number, and access to a web portal. We reserve the right to increase the Technology Fee during the Term up to a maximum of $30 per week as technology advances and the cost of providing this technology increases.

2.3.Scheduling Tools

You will need a customer relationship management ("CRM") system which includes scheduling functionality to operate your Franchised Business. You must use the CRM provider designated by us during the Term of this Agreement. This CRM technology is not included in the Technology Fee and is not subject to the maximum technology fee amount specified in Section 2.2. As of the Effective Date, you will contract directly with a third-party CRM vendor designated by us for such technology; however, we reserve the right to negotiate an agreement directly with a CRM vendor and pass the actual fee incurred by us onto you. We will refer to this fee as the "CRM Fee". If we contract directly with a CRM vendor for CRM technology, you will pay such CRM Fee to us separate and apart from the Technology Fee to us and in the manner we designate.

2.4.Royalty Fee

You will pay to us a Royalty Fee of 8% of Gross Revenues on a weekly basis by electronic funds transfer. Your obligation to pay the Royalty Fee begins immediately upon execution of this Agreement and is subject to a minimum amount of $125 per week (the "Minimum Weekly Royalty Fee").

During the Initial Term, the Minimum Weekly Royalty Fee will begin the thirteenth (13th) week immediately following the earlier of (a) the day you complete Initial Training or (b) the day you begin operations, whichever occurs first. During a Renewal Term, the Minimum Weekly Royalty Fee will commence immediately.

"Gross Revenues" means the total of all receipts whether cash, credit, checks, bitcoin, or other means of exchange net of any tax, adjustments, credits and allowances actually made in accordance with the Operations Manual. Even though we reserve the right to access your computer system to download sales information, you must provide us with the required Gross Revenue report every Tuesday prior to 5:00 p.m. EST, or such other time as we designate, for the prior week's activity. The end of each week for Royalty collection purposes is Saturday at midnight. If you operate more than one (1) Vehicle (through this Agreement or any other agreement with us), your Gross Revenue Report must be reported to us on a per-Vehicle basis.

2.5.Sales, Excise or Gross Receipts Tax

If required by the federal government, state or locality in which your Franchised Business is located, the initial franchise fee, royalties, and possibly other goods or services may be subject to sales, excise, gross receipts or similar type tax, which you will pay to us at the same time and in the same manner as you pay these fees to us.

2.6.Third Party Software Fees

You will pay fees to third party software providers, if any, as specified in the Manual.

2.7.On-Site Training Fee

If we provide on-site services at your request, then you will pay to us for travel and living expenses for our staff to travel to you.

2.8.Annual Convention

Either you or your General Manager must attend the Annual Convention. While there will be no admission fee, you are responsible for any travel related expenditures such as lodging, meals, and transportation.

2.9.Third Party Charges

If we incur third party charges on your behalf, you will reimburse us for any such charges.

2.10. Transfer Fee

You will pay to us a Transfer Fee of $5,000 if you wish to transfer ownership of the rights under this Agreement, or a majority of the ownership of this Agreement or in an entity holding this Agreement.

2.11. Client Refunds

If you do not resolve a Client service complaint and we believe a reasonable basis exists for a refund to the Client all or a portion of the Client's fees, we may pay the Client directly. We will charge you for the settlement and you will reimburse us within the next normal payment cycle.

2.12. Audit Fee

You will pay to us our cost in performing an audit of your Franchise Business plus a Late Fee of $50 per month on any late payment found through such audit if the audit discloses an under reporting of Gross Revenues or underpayment to us by 5% or more.

2.13. Payment Terms

Recurring fees, including Royalty payments, and reports must be submitted by Tuesday each week. We will provide an invoice to you for other fees incurred. Payment is due upon receipt and will be paid by automatic electronic funds transfer. We reserve the right to deduct monies that you owe to us from monies that we pay to you and pay you the net amount owed to you or charge you any net amount you may owe to us. You will execute an Automatic Bank Draft Authorization on a form substantially similar to that in Schedule 3. If you change bank accounts for any reason, you must notify us within five (5) days and execute a new form. Likewise, we may request updated forms from time to time as reasonably required by us.

2.14. Credit Card Fee

If we allow you to pay any fee to us by credit card, you also will pay to us the then-current credit card processing fee charged by third-party processors as a credit card fee (to the fullest extent permitted by law).

2.15. Insufficient Funds Fee

You will pay to us a minimum of $50 per transaction if an electronic transfer or other payment from you to us is declined.

2.16. Late Fees

Overdue amounts owed by you to us that are five (5) days past due are subject to a service charge of 1% per month on the unpaid balance, or if lower, then the maximum rate allowed by law.

Duties of Franchisor

3.1.Manual

We provide you access to our proprietary and confidential documents that prescribes policies and procedures, as well as any other instructions and forms (collectively "Manual") for your use in operating a Franchised Business. We disseminate the Manual electronically through our webbased portal. We may revise the Manual from time to time to adjust for competitive, legal or technological changes, or continuous improvement. You will implement those changes as if they were present when you signed this Agreement.

3.2.Site Selection

You can operate your Franchised Business out of your home. If you choose to operate your business out of a commercial office location within your Territory, we may provide you with guidance to help you select a site, but we do not offer site selection assistance. We must approve any site you select in writing before you sign a lease for that location. We will typically approve or disapprove a proposed site within 14 days of your submission to us of the information required by us on the proposed site.

3.3.Training

A. Initial Training.

We will provide you a three (3) day Initial Training course. The Initial Training course will cover fundamental skills necessary to perform the Services. We presently offer this training live in Virginia Beach, VA, but may offer it in other locations, or via interactive video conference or webinar at our choosing. We offer Initial Training once per month and you should complete Initial Training within 60 days of the Effective Date. Successful completion of the Initial Training is mandatory and must be completed at least one week prior to opening the business. We do not charge for training, but you must pay any travel, transportation, lodging, and meal costs you incur to attend.

B. Advanced Training

We may provide you advance training on various topics. We presently offer this training live in Virginia Beach, VA, but may offer it in other locations, or via interactive video conference or webinar at our choosing. Attendance at advanced training is required.

3.4.People Management

You are solely responsible for hiring, firing, compensating, withholding and remitting applicable payroll taxes and day-to-day supervision and control over your employees. The Manual may recommend best practices on how to hire and train employees; however, nothing in the Manual will be construed to shift control over your employees to us.

3.5.Vehicle Upfitting, Signage, Supplies and Sourcing

We provide guidance to obtain and upfit the Vehicle and obtain equipment, signs, fixtures, opening inventory, and supplies. We provide the names of approved vendors or specifications for these items. We do not deliver or install these items. However, you are responsible for investigating and ensuring compliance with your state's Osha requirements as they relate to your Vehicle.

Duties of Franchisee

4.1.Commitment

A. Involvement

You must operate the Franchise Business personally unless you submit to us a General Manager who attends and successfully completes our Initial Franchisee Training course, and who is not later disapproved by us.

B. Client Service

You must serve Clients in a professional and respectful businesslike manner diligently fulfilling your obligations to them when they desire to purchase your goods or services.

C. Products and Services

You must offer, sell, and perform only the products and services we have authorized (the "Approved Products and Services"). The Approved Products and Services may change from time to time during the Term of this Agreement or any Renewal to adjust for competitive changes, technological advancements, legal requirements, or continuous improvement. Any adjustment to the Approved Products and Services will be made in our sole judgment and disseminated through our Manual. Adjustments may be optional or may be required. We will provide you with reasonable notice before requiring you to offer new products and services. You may not offer or sell any products or perform any services that we have not approved.

D. Non-Competition Covenants

You will not, during the Term of this Agreement, in the United States or its Territories, directly or indirectly, offer the Approved Products and Services other than through a Zoomin Groomin Franchised Business.

4.2.Training

A. Initial Training.

You and any General Manager working for you must attend and successfully complete our Initial Franchisee Training at least one-week before you may operate the Franchised Business. We do not charge for Initial Training, but you must pay for any travel and living expenses to attend.

B. Advanced Training.

You will attend any advanced or refresher training that we may require either through electronic means or in person.

C. Employee Training.

You will train your employees to competently and professionally carry out their duties and offer excellent Client service. You will ensure that your employees have any training, licenses, or certifications required by applicable law.

4.3.Operations

A. Manual.

You must operate the Franchised Business according to the then current Manual.

B. Modification

We may modify the Manual to adjust for competitive changes, technological advancements, legal requirements, and continuous improvement. You will implement those changes as if they were present when you signed this Agreement. However, revisions to the Manual will not unreasonably affect your obligations, including economic requirements, under the Agreement.

C. Vehicle

You must purchase at least one (1) mobile pet grooming vehicle (the "Vehicle") from an approved vendor that meets our specification and comply with your state's Osha requirements. You must use the Vehicle for the operation of the Franchised Business. You must keep the Vehicle available and in normal operating condition as specified in the Manual. You must maintain the Vehicle in accordance with the Manual. You must refrain from using or permitting the use of the Vehicle for any other purpose or activity at any time without first obtaining our written consent. You must begin taking commercially reasonable efforts to secure an initial Vehicle within sixty (60) days of the Effective Date. If you believe in your sole judgment that the Territory can support more than one Vehicle, you may obtain a second or subsequent Vehicle at any point during the Term.

4.4.OpTech

A. Email Address

We will obtain and maintain an operational email address for your Franchised Business.

B. Requirement

Since technology changes rapidly, all required and optional computer hardware, software, internet/network connectivity, telephony and support services (collectively "Optech") to operate your Franchised Business is specified in the Manual.

C. Technology Refresh

You will obtain and maintain the Optech as listed in the Manual. We will update the Manual from time to time as necessary to integrate new technologies as they become available and demonstrate value to the Client. We will use commercially reasonable efforts to provide sufficient notice and transition time to migrate Optech as necessary.

4.5.REPORTS AND REVIEW

A. Reports

You must send us such reports at the frequency and manner that is specified in the Manual. Presently, you must send to us the reports in the following table:

Name of Report When Due | Annual Budget | September 30 of each year

Source: Item 9 — 01. Financial Statements and Exhibits. (FDD pages 68–156)

What This Means (2025 FDD)

According to Zoomin Groomin's 2025 Franchise Disclosure Document, the Annual Budget is due by September 30 of each year. This requirement ensures that Zoomin Groomin franchisees plan their financial activities and submit their budget reports to the franchisor by this date.

For a prospective Zoomin Groomin franchisee, this means that they must prepare and submit their annual budget to Zoomin Groomin by September 30th each year. This allows the franchisor to review and potentially provide feedback on the franchisee's financial plans. It also helps Zoomin Groomin to have an overview of the financial health and projections of its franchise network.

Missing the September 30 deadline could potentially lead to penalties or other consequences as outlined in the franchise agreement. Therefore, it is crucial for franchisees to prioritize the preparation and submission of their annual budget to Zoomin Groomin by the specified date.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.