How does Zoomin Groomin define the territory granted to a franchisee?
Zoomin_Groomin Franchise · 2025 FDDAnswer from 2025 FDD Document
id="page-74-1">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.
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, a franchisee is granted the right to operate their Franchised Business within a specific geographic area, referred to as the "Territory." This territory's boundaries are detailed in Schedule 1 of the Franchise Agreement. Zoomin Groomin does not grant exclusive territories. Franchisees may face competition from other franchisees, company-owned outlets, or other channels of distribution. However, franchisees receive a protected territory, meaning Zoomin Groomin promises not to establish a company-owned or franchised outlet within the franchisee's geographical area.
Without prior written approval from Zoomin Groomin, franchisees cannot accept orders from consumers or use other distribution channels to make sales outside their designated Territory. If a franchisee wishes to operate outside their Territory, they must seek permission from Zoomin Groomin, understanding that this permission is temporary. To secure rights over a new geographical region, a franchisee must purchase additional franchise rights.
Operating outside the assigned territory without permission can lead to termination of the agreement. If a franchisee operates within another franchisee's territory without permission, the profits earned in that area must be transferred to the franchisee whose territory was encroached upon. Zoomin Groomin also retains the right to sell undeveloped areas to new franchisees, without offering the existing franchisee the first right of refusal.