Can Zoomin Groomin develop or acquire other businesses, even if they are competitive?

According to Zoomin Groomin's 2025 Franchise Disclosure Document, Zoomin Groomin or its affiliates retain the right to engage in sales within a franchisee's territory using different trademarks, including establishing, acquiring, operating, or franchising businesses that offer similar goods or services. Specifically, Zoomin Groomin plans to establish or acquire and operate or franchise a business under a different trademark that will sell goods or services similar to those offered by Zoomin Groomin franchisees. This new franchise system will offer pet grooming services through brick-and-mortar locations under a different trademark and will solicit and accept orders within a franchisee's territory.

This dual distribution strategy means that a Zoomin Groomin franchisee could face direct competition from another franchise system operated or franchised by Zoomin Groomin itself. This other franchise may offer similar services within the franchisee's protected territory, potentially impacting the franchisee's customer base and revenue. The franchisee's right to exclusivity is limited, and they may face competition from other franchisees, outlets that Zoomin Groomin owns, other channels of distribution, or competitive brands that Zoomin Groomin controls for clients within their territory.

This aspect of the franchise agreement is crucial for potential franchisees to understand. While franchisees receive a protected territory, this protection does not prevent Zoomin Groomin from operating or franchising similar businesses under different trademarks within that same territory. Prospective franchisees should carefully consider the potential impact of this competitive overlap on their business and discuss this issue with Zoomin Groomin before investing in a franchise.