Does the Zoomin Groomin franchise agreement define what constitutes an 'undeveloped' territory?
Zoomin_Groomin Franchise · 2025 FDDAnswer from 2025 FDD Document
In no event will you be permitted to offer Services to any Client within a developed territory owned by another unit franchisee. Should we grant permission for you to operate in an undeveloped neighboring territory, our permission will be freely revocable by us for any reason or no reason at all. Further, you will be required to immediately stop providing Services to any Client located outside of your Territory upon verbal or written notice from us that a new franchisee has purchased such territory, and you will provide a list of all customers previously served by you in such territory to the new franchisee.
Source: Item 12 — TERRITORY (FDD pages 32–34)
What This Means (2025 FDD)
According to Zoomin Groomin's 2025 Franchise Disclosure Document, the franchise agreement does not explicitly define what constitutes an 'undeveloped' territory. However, it does reference the term in the context of operating outside of a franchisee's exclusive territory. Specifically, if Zoomin Groomin grants a franchisee permission to operate in an undeveloped neighboring territory, that permission is freely revocable.
This means that a Zoomin Groomin franchisee might be allowed to temporarily service customers in an area not yet assigned to another franchisee. However, this right is not guaranteed and can be withdrawn at any time, particularly if a new franchisee purchases the rights to that territory. The FDD states that upon notice of a new franchisee purchasing the territory, the original franchisee must immediately stop providing services there and provide a customer list to the new franchisee.
This clause protects Zoomin Groomin's ability to expand its franchise network and ensures new franchisees have a clear customer base. For a franchisee operating in or near an 'undeveloped' area, it introduces uncertainty, as their ability to serve those customers can be terminated without cause. It is important for prospective franchisees to understand the conditions under which they might be allowed to operate outside their territory and the risks associated with building a customer base in an area that could be taken away.