Can Zoomin Groomin engage in business activities not expressly prohibited by the Zoomin Groomin Franchise Agreement?

According to the 2025 Zoomin Groomin Franchise Disclosure Document, Zoomin Groomin and its affiliates retain certain rights not expressly granted to the franchisee. This means that Zoomin Groomin is permitted to engage in business activities that are not specifically prohibited in the Franchise Agreement.

Zoomin Groomin reserves the right to use other channels of distribution, such as the Internet, catalog sales, telemarketing, or other direct marketing sales, to solicit or accept customers within a franchisee's territory using their trademarks without compensating the franchisee. They can also implement cross-territorial protocols for situations like group advertising buys, solicitation of orders from individuals working in different territories, and other cross-territorial situations. Additionally, Zoomin Groomin can establish and operate, or grant rights to others to establish and operate, a Franchised Business or similar businesses at any locations outside of the franchisee's territory under terms and conditions they deem appropriate.

Zoomin Groomin's affiliate, Purely Pet LLC d/b/a Salty Dawg, franchises a business under the Salty Dawg marks, selling similar goods or services to those offered by Zoomin Groomin. Salty Dawg franchisees offer brick-and-mortar pet grooming services and related products, which may include soliciting or accepting orders from customers within a Zoomin Groomin franchisee's territory. While Salty Dawg and Zoomin Groomin share the same principal business address and maintain physically separate offices, Zoomin Groomin retains the right to resolve conflicts regarding territory, customers, and franchisor support, ultimately acting as the sole determiner in such matters. This could potentially create competition within a franchisee's territory from a related brand.

For a prospective franchisee, this means that while they are granted an exclusive territory, Zoomin Groomin retains significant control over business activities within and outside that territory. Franchisees should be aware that Zoomin Groomin can utilize various sales channels to solicit customers in their territory without compensation and can operate or franchise similar businesses outside their territory. The presence of the Salty Dawg franchise and Zoomin Groomin's ability to determine conflict resolution also present potential challenges. It is important for potential franchisees to carefully consider these factors and seek clarification from Zoomin Groomin regarding their specific plans and policies related to these reserved rights.