Does the Zoomin Groomin Franchise Agreement outline the process for transferring a franchise to a controlled entity?
Zoomin_Groomin Franchise · 2025 FDDAnswer from 2025 FDD Document
7.4.Transfer to Controlled Entity
A "Controlled Entity" is an entity in which you are the beneficial owner of 100% of each class of voting ownership interest. A transfer to a "Controlled Entity" will not trigger the Right of First Refusal. At the time of the desired transfer of interest to a Controlled Entity, you must notify us in writing of the name of the Controlled Entity and the name and address of each officer, director, shareholder, member, partner, or similar person and their respective ownership interest. Each such person of the Controlled Entity must sign the then-current amendment and release forms or Franchise Agreement as required by us. We do not charge a transfer fee for this change.
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, the Franchise Agreement does address the process for transferring a franchise to a controlled entity. A "Controlled Entity" is defined as an entity where the franchisee is the beneficial owner of 100% of each class of voting ownership interest. Transferring the franchise to a Controlled Entity does not trigger the Right of First Refusal, which Zoomin Groomin would otherwise have.
To transfer to a Controlled Entity, the franchisee must provide written notification to Zoomin Groomin. This notification must include the name of the Controlled Entity and the name and address of each officer, director, shareholder, member, partner, or similar person, along with their respective ownership interest. Each of these individuals within the Controlled Entity must also sign the then-current amendment and release forms or Franchise Agreement as required by Zoomin Groomin.
Notably, Zoomin Groomin does not charge a transfer fee for transferring the franchise to a Controlled Entity. This is a benefit to the franchisee, as transfer fees can often be a significant cost. This process allows a Zoomin Groomin franchisee to structure their business for legal and tax purposes without incurring additional fees or triggering Zoomin Groomin's right to first refusal, provided the franchisee maintains complete ownership of the Controlled Entity.