Can a Zoomin Groomin franchisee terminate the agreement if they sell the franchised business?
Zoomin_Groomin Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
Source: Item 16 — RESTRICTIONS ON WHAT THE FRANCHISEE MAY SELL (FDD pages 37–41)
What This Means (2025 FDD)
Based on the 2025 Zoomin Groomin Franchise Disclosure Document, the document does not explicitly state that a franchisee can terminate the agreement upon the sale of the franchised business. However, the FDD does state that a franchisee is subject to non-compete clauses even if they sell their franchise business. Specifically, for a period of two years after the expiration or termination of the agreement, the franchisee cannot unfairly compete with Zoomin Groomin within the territory or within twenty-five 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 the franchisee sells their Zoomin Groomin franchise business. Additionally, for a period of two years after the expiration or termination of the agreement, the franchisee cannot directly or indirectly solicit the patronage of any customer served by their prior franchised business during the last 24 months that they were a franchisee.
Because the FDD does not directly address whether a franchisee can terminate the agreement upon the sale of their business, it is important for a prospective franchisee to seek clarification from Zoomin Groomin regarding the specific conditions under which the franchise agreement can be terminated, especially in the context of selling the business. This would involve understanding the procedures, potential fees, and any other obligations that must be met to ensure a smooth and legally compliant exit from the franchise system.