What governmental action involving John T. Hewitt must be disclosed in the Zoomin Groomin FDD?
Zoomin_Groomin Franchise · 2025 FDDAnswer from 2025 FDD Document
In the Matter of a Consent Order between The Commissioner of Financial Protection and Innovation and John T. Hewitt, before the Commissioner of Financial Protection and Innovation for the State of California. The Commissioner is the head of the Department of Financial Protection and Innovation (Department) and is responsible for administering and enforcing the Franchise Investment Law (FIL) (Corp. Code, § 31000 et seq.), The Commissioner has determined pursuant to her authority under the FIL that John T. Hewitt is "subject to" the Final Order entered in the matter of United States of America v. Franchise Group Intermediate L 1, LLC d/b/a Liberty Tax Service (Case No. 2:19-cv-00653-RAJ-DEM) filed on or around December 3, 2019 in the United States District Court for the Eastern 25 District of Virginia (the Final Order). John T. Hewitt agreed that he is required to disclose the Final Order in Item 3 of any Franchise Disclosure Document filed by any present or future Franchisor where John T. Hewitt is a director, trustee, general partner, principal officer, or maintains management responsibility relating to the sale or operation of the respective Franchisor, along with disclosure of this governmental action.
Source: Item 3 — LITIGATION (FDD pages 11–16)
What This Means (2025 FDD)
According to the 2025 Zoomin Groomin Franchise Disclosure Document, John T. Hewitt is subject to a Final Order related to the case of United States of America v. Franchise Group Intermediate L 1, LLC d/b/a Liberty Tax Service (Case No. 2:19-cv-00653-RAJ-DEM), filed around December 3, 2019, in the United States District Court for the Eastern District of Virginia. As a result, Hewitt must disclose this Final Order in Item 3 of any Franchise Disclosure Document filed by any present or future franchisor where he holds a position as a director, trustee, general partner, principal officer, or maintains management responsibility relating to the sale or operation of the respective franchisor. This disclosure must also include information about the governmental action itself.
This requirement stems from a determination by the Commissioner of Financial Protection and Innovation for the State of California, who oversees the Franchise Investment Law (FIL). The Commissioner has determined that Hewitt is "subject to" the Final Order. Hewitt agreed to disclose the Final Order in Item 3 of any Franchise Disclosure Document filed by any present or future Franchisor where John T. Hewitt is a director, trustee, general partner, principal officer, or maintains management responsibility relating to the sale or operation of the respective Franchisor, along with disclosure of this governmental action.
For a prospective Zoomin Groomin franchisee, this disclosure requirement ensures transparency regarding the background of individuals in leadership positions within the franchise system. It allows potential franchisees to assess any potential risks or liabilities associated with individuals involved in the franchise's management. Franchisees should carefully review Item 3 of the FDD to understand the details of the Final Order and its potential implications for Zoomin Groomin.