After my Zoomin Groomin franchise terminates, what post-term duties am I required to adhere to?
Zoomin_Groomin Franchise · 2025 FDDAnswer from 2025 FDD Document
ending you notice and an opportunity to cure: a. You violate any other term or condition of this Agreement, the Franchisee Operations Manual, or any other agreement with us; or
b. Any amount owing to us from you is more than 30 days past due.
8.4.No Refund of Initial Fee
We have no obligation to return or refund any fee to you upon termination or expiration of this Agreement.
8.5.Post Termination Obligations
Upon termination or expiration of this Agreement, including a sale of the Franchise Business, you will:
- a. Cease to operate the Franchised Business;
- b. Discontinue using any of our "Marks;"
- c. Cancel all fictitious name filings which you use that includes any of our Marks;
- d. Pay to us all amounts owing to us;
- e. Reimburse Clients for any fees paid for services not yet rendered;
- f. If requested by us, transfer to us all telephone numbers and internet listings used in relation to this Franchise Business by executing our then current form and deliver to us written proof of transfer;
- g. At our option, and upon our request, use your best efforts to assist in transferring the lease of the facility of your Franchised Business, whether it be through a new lease or assignment;
- h. Return to us or certify destruction of any paper and electronic copies of the Manual and any Confidential Information (retaining only such copies as you need for legal or tax purposes);
- i. Adhere to the post-term duties stated in Section 8.6 entitled Non-Compete and No Solicitation and any other duties that require your performance after you are no longer an Franchisee;
- j. Abide by any other covenant in this Agreement that requires performance by you after you are no longer a franchisee;
- k. Refrain from making disparaging comments in any form about us or our current and former employees, agents, members, directors, or franchisees.
8.6.Non-Compete and No Solicitation
A. Unfair Competition During the Term
You will not unfairly compete with us at any time during the Term of this Agreement by, directly or indirectly, owning, operating, or having any interest in any competitive business and you will not directly or indirectly assist anyone in competition with us (collectively, the "Restricted Activities") within the United States or its territories. For avoidance of doubt, a competitive business is one that offers mobile pet grooming or related pet products and services.
B. Unfair Competition After the Term
You will not unfairly compete with us for a period of two (2) years after expiration or termination of this Agreement in the Territory or within twenty-five (25) miles of the boundaries of the Territory or 25 miles of any other Zoomin Groomin outlet by engaging in any Restricted Activities. This restriction applies even if you sell your Franchise Business.
C. No Solicitation
You will not, for a period of two years after expiration or termination of this Agreement, in the Territory or within 25 miles of the boundaries of your Territory, directly or indirectly solicit the patronage of any customer served by your prior Franchised Business during the last 24 months that you were a franchisee, or such shorter time as you were a franchisee, for the purpose of offering such person or entity, for a fee or charge, pet grooming or related pet products and services.
D. Disparagement
During the Restricted Period, you will avoid intentional conduct that leads any existing Client or vendor to modify their relationship to the harm of the Franchise Business.
8.7.Purchase of Business Assets on Non-Renewal or Termination
In the event of a Termination or Expiration of this Agreement, we have will have the right, but not the obligation, to purchase the Vehicle and other assets of the Franchised Business at fair market value. The fair market value of the Vehicle will be equal to the then-current valuation assigned by Kelley Blue Book, without regard to improvement of the Vehicle for the operation of the Franchise Business. The fair market value of the other assets (including the improvements to the Vehicle) will be determined by the parties or by an independent third-party.
8.8.Waiver of Bond
If we are forced to bring suit to enforce any sections of this Agreement, you will waive any requirement that we post bond to obtain a temporary or permanent injunction to enforce these duties.
8.9.Severability
If any covenant or provision of this Agreement is determined to be void or unenforceable, in whole or in part, it will be deemed severed and removed and will not affect or impair the validity of any other covenant or provision. Further, these obligations are considered independent of any other provision in this Agreement and the existence of any Claim or cause of action by either Party to this Agreement against the other, whether based upon this Agreement or otherwise, will not constitute a defense to the enforcement of these obligations.
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, franchisees have several obligations following the termination or expiration of their Franchise Agreement. These obligations include ceasing operation of the Franchised Business, discontinuing the use of Zoomin Groomin's trademarks, and canceling any fictitious name filings that include Zoomin Groomin's marks. Additionally, franchisees must pay all outstanding amounts owed to Zoomin Groomin and reimburse clients for fees paid for services not yet rendered. Franchisees are also required to transfer telephone numbers and internet listings to Zoomin Groomin if requested and provide written proof of the transfer.
Zoomin Groomin may request that the franchisee use their best efforts to assist in transferring the lease of the business facility, either through a new lease or assignment. Franchisees must return or certify the destruction of all paper and electronic copies of the Manual and any Confidential Information, except for copies needed for legal or tax purposes. Furthermore, franchisees must adhere to the non-compete and no-solicitation duties outlined in the agreement, which restrict certain competitive activities for a specified period.
Specifically, for two years after the agreement ends, franchisees cannot unfairly compete within their territory or within 25 miles of it or any other Zoomin Groomin location by offering mobile pet grooming or related services. They are also prohibited from soliciting the patronage of any customer served by their former franchise during the last 24 months of operation. Lastly, franchisees must refrain from making disparaging comments about Zoomin Groomin or its employees, agents, members, directors, or franchisees.
Zoomin Groomin also requires that upon termination or expiration of the Agreement for any reason, the franchisee's right of use of the Listings shall terminate. In the event of termination or expiration of the Agreement, franchisee will pay all amounts owed in connection with the Listings, and to immediately at Franchisor's request take any action as may be necessary to transfer the Listings to Franchisor or Franchisor's designated agent, install and maintain, at Franchisee's sole expense, an intercept message, in a form and manner acceptable to Franchisor on any or all of the Listings; disconnect the Listings; and/or cooperate with Franchisor or its designated agent in the removal or relisting of the Listings. Franchisor may require Franchisee to "port" or transfer to Franchisor or an approved call routing and tracking vendor all Listings.