What is the geographic scope of the non-competition covenant for Zoomin Groomin franchisees during the term of the agreement?
Zoomin_Groomin Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
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, during the term of the franchise agreement, a franchisee is restricted from engaging in any competitive business activities within the United States or its territories. This means that while the franchise agreement is active, the franchisee cannot own, operate, or have any interest in a business that offers mobile pet grooming or related pet products and services anywhere in the U.S. or its territories, nor can they assist anyone else in doing so.
This non-compete clause is quite broad geographically, covering the entire United States and its territories. This prevents a franchisee from operating a competing business even in areas far removed from their specific franchise location. The FDD specifies that a competitive business is one that offers mobile pet grooming or related pet products and services.
This restriction is designed to protect Zoomin Groomin's market share and brand integrity nationwide. Prospective franchisees should understand that this non-compete agreement significantly limits their ability to engage in any related business ventures during the term of their franchise agreement. Franchisees should carefully consider the implications of this broad geographic restriction on their future business opportunities.