What is the deadline for a Zoomin Groomin franchisee to notify another franchisee and provide payment for operating in their territory?
Zoomin_Groomin Franchise · 2025 FDDAnswer from 2025 FDD Document
Should you (i) provide Services or otherwise operate your Franchised Business in another franchisees territory or (ii) fail to stop providing Services or otherwise operate the Franchised Business 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 fee collected by you for such Services. Furthermore, you must notify such franchisee who has rights in such territory and provided payment to them within ten (10) days of receipt of payment by you.
Source: Item 12 — TERRITORY (FDD pages 32–34)
What This Means (2025 FDD)
According to the 2025 Zoomin Groomin Franchise Disclosure Document, if a franchisee operates in another franchisee's territory, they must compensate the affected franchisee. Specifically, the franchisee operating outside their territory must pay 100% of all grooming and convenience fees collected for services provided in the other franchisee's territory.
The deadline for notifying the franchisee whose territory was infringed upon and providing payment is within ten days of receiving payment for the services provided in the other franchisee's territory. This means that the infringing franchisee must first receive payment from the customer for the services rendered in the incorrect territory, and then they have ten days to both notify the correct franchisee and remit the appropriate payment.
This policy ensures that franchisees are compensated for any loss of business due to another franchisee operating outside of their designated territory. It also incentivizes franchisees to respect territorial boundaries and to seek permission before operating outside of their own territory. The financial penalty of 100% of fees, along with the notification requirement, aims to deter unauthorized operations and maintain territorial exclusivity, which is a common practice in franchising to protect franchisees' investments.