What is the implication of the Zoomin Groomin franchisor's rights surviving the termination of the agreement?
Zoomin_Groomin Franchise · 2025 FDDAnswer from 2025 FDD Document
THIS TELEPHONE & INTERNET ASSIGNMENT AGREEMENT is made between Zoomin Groomin USA LLC d/b/a Zoomin Groomin ("Franchisor," "we", "us", or "our") and the franchisee named below ("Franchisee", "you" or "your").
BACKGROUND
- A. The parties are entering into a Franchise Agreement ("Agreement").
- B. As a condition to signing the Franchise Agreement, we have required that you appoint us Attorney in Fact, to take effect upon the expiration or termination of the Agreement, as to the telephone numbers, listings, advertisements, social media accounts, domains, websites, directories, or similar (collectively "Listings") relating to your Franchise.
LISTINGS ASSIGNMENT
Upon expiration or termination of the Agreement for any reason, 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,
- A. take any other action as may be necessary to transfer the Listings to Franchisor or Franchisor's designated agent,
- B. 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;
- C. disconnect the Listings; and/or
- D. 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.
Appointment as Attorney in Fact.
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, the franchisor retains certain rights even after the franchise agreement terminates, which has several implications for franchisees. Specifically, Zoomin Groomin requires franchisees to assign their telephone numbers, listings, advertisements, social media accounts, domains, websites, and directories related to the franchise to Zoomin Groomin upon termination or expiration of the agreement. This assignment is facilitated by the franchisee appointing Zoomin Groomin as their Attorney in Fact.
This means that upon termination, a franchisee loses control over all marketing channels and online presence they may have built for their Zoomin Groomin business. Zoomin Groomin can then redirect these assets to a new franchisee or operate them as company assets. The franchisee is responsible for paying any outstanding amounts connected to these listings and must take actions necessary to transfer them to Zoomin Groomin or their agent. This includes installing intercept messages, disconnecting the listings, or cooperating in their removal or relisting, all at the franchisee's expense.
Furthermore, Zoomin Groomin can require the franchisee to transfer all listings to them or an approved vendor. This ensures a clean break and allows Zoomin Groomin to maintain continuity in the market. The franchisor's rights to these assets after termination are a significant consideration for potential franchisees, as it impacts their ability to retain any value or goodwill they may have built in their local market. This is a fairly standard practice in franchising to protect the brand and ensure a smooth transition between franchisees, but it is important for the franchisee to understand the extent of these obligations.