Does Zoomin Groomin charge a transfer fee when a franchisee transfers their interest to a Controlled Entity?
Zoomin_Groomin Franchise · 2025 FDDAnswer from 2025 FDD Document
A "Controlled Entity" is an entity in which you are the beneficial owner of 100% of each class of voting ownership interest. A transfer to a "Controlled Entity" will not trigger the Right of First Refusal. At the time of the desired transfer of interest to a Controlled Entity, you must notify us in writing of the name of the Controlled Entity and the name and address of each officer, director, shareholder, member, partner, or similar person and their respective ownership interest. Each such person of the Controlled Entity must sign the then-current amendment and release forms or Franchise Agreement as required by us. We do not charge a transfer fee for this change.
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, a franchisee will not be charged a transfer fee when transferring their interest to a Controlled Entity. The FDD defines a Controlled Entity as one in which the franchisee is the beneficial owner of 100% of each class of voting ownership interest.
To initiate the transfer of interest to a Controlled Entity, the franchisee must provide written notification to Zoomin Groomin. This notification should include the name of the Controlled Entity, as well as the names and addresses of each officer, director, shareholder, member, partner, or similar person, along with their respective ownership interest in the entity.
Furthermore, each person associated with the Controlled Entity is required to sign the then-current amendment and release forms or the Franchise Agreement, as deemed necessary by Zoomin Groomin. By adhering to these notification and documentation requirements, a franchisee can transfer their interest to a Controlled Entity without incurring a transfer fee.