What does the Zoomin Groomin Franchise Agreement say about joint tenancy and franchise transfers?
Zoomin_Groomin Franchise · 2025 FDDAnswer from 2025 FDD Document
7.3.Joint Tenancy
If this Agreement is held by joint tenants or tenants in common, all joint tenants or tenants in common must join in any transfer of an ownership interest in this Agreement, except any person who is deceased or under a legal disability.
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.
7.5.Transfer within an Entity
A transfer of interest within a Franchise entity will not trigger the Right of First Refusal if only the percentage ownership changes rather than the identity of the owners. At the time of the desired transfer of interest within an entity, you must notify us in writing of the name and address of each officer, director, shareholder, member, partner or similar person and their re
Source: Item 9 — 01. Financial Statements and Exhibits. (FDD pages 68–156)
What This Means (2025 FDD)
According to Zoomin Groomin's 2025 Franchise Disclosure Document, the Franchise Agreement addresses joint tenancy and franchise transfers. Specifically, if the agreement is held by joint tenants or tenants in common, all individuals must participate in any transfer of ownership, unless they are deceased or legally disabled.
The agreement outlines specific conditions for transfers to a Controlled Entity, defined as an entity where the franchisee owns 100% of the voting ownership interest. Such transfers do not trigger the Right of First Refusal. However, Zoomin Groomin requires written notification including the Controlled Entity's name, the names and addresses of its officers, directors, shareholders, members, partners, or similar persons, and their respective ownership interests. These individuals must also sign the then-current amendment and release forms or Franchise Agreement as required by Zoomin Groomin, and no transfer fee is charged for this type of change.
Furthermore, a transfer of interest within an existing franchise entity does not trigger the Right of First Refusal if only the percentage ownership changes, rather than the identity of the owners. Zoomin Groomin requires written notification of the names and addresses of relevant parties and their ownership interests in this scenario as well.