Does the Zoomin Groomin franchisor have the right to terminate the agreement without cause?
Zoomin_Groomin Franchise · 2025 FDDAnswer from 2025 FDD Document
Item 17.g. of the Disclosure Document is modified to state that, in addition to the grounds for immediate termination specified in Item 17.h., the franchisor can terminate upon written notice and a 60 day opportunity to cure for a breach of the Franchise Agreement.
Item 17.h. of the Disclosure Document is modified to state that the franchisor can terminate immediately for insolvency, abandonment, mutual agreement to terminate, material misrepresentation, legal violation persisting 10 days after notice, repeated breaches, judgment, criminal conviction, monies owed to the franchisor more than 5 days past due, and imminent danger to public health or safety.
The franchise agreement requires application of the laws of Virginia. This provision may not be enforceable under California law.
The franchise agreement contains a covenant not to compete which extends beyond the termination of the franchise. This provision may not be enforceable under California law.
Source: Item 16 — RESTRICTIONS ON WHAT THE FRANCHISEE MAY SELL (FDD pages 37–41)
What This Means (2025 FDD)
According to the 2025 Zoomin Groomin Franchise Disclosure Document, the franchisor does not have the right to terminate the agreement without cause. Item 17.g clarifies that Zoomin Groomin can terminate the franchise agreement with written notice and a 60-day opportunity to cure for a breach of the Franchise Agreement.
Furthermore, Item 17.h outlines specific grounds for immediate termination, including insolvency, abandonment, mutual agreement to terminate, material misrepresentation, legal violation persisting 10 days after notice, repeated breaches, judgment, criminal conviction, monies owed to the franchisor more than 5 days past due, and imminent danger to public health or safety. These stipulations suggest that Zoomin Groomin can only terminate the agreement if the franchisee fails to meet certain obligations or engages in specific detrimental conduct, rather than at will or without any stated reason.
It is important to note that the franchise agreement requires application of the laws of Virginia, which may differ from the laws of other states like California. The disclosure document also mentions that a covenant not to compete extends beyond the termination of the franchise, which may not be enforceable under California law. Prospective franchisees should be aware of these legal considerations and consult with legal counsel to understand their rights and obligations under the franchise agreement.