What is the meaning of the 'protected territory' that Zoomin Groomin grants to franchisees?
Zoomin_Groomin Franchise · 2025 FDDAnswer from 2025 FDD Document
You will not receive an exclusive territory. You may face competition from other franchisees, from outlets that we own, or from other channels of distribution or competitive brands that we control. However, you will receive a protected territory, meaning a geographical area within which we promise not to establish a Zoomin Groomin company owned or franchised outlet. You may not accept orders from consumers to provide Services outside of your Territory, nor may you use other channels of distribution, such as the Internet, catalog sales, telemarketing, or other direct marketing, to make sales outside your Territory without our prior written approval as provided in Section 1.3 (C) of this Agreement.
Source: Item 9 — 01. Financial Statements and Exhibits. (FDD pages 68–156)
What This Means (2025 FDD)
According to Zoomin Groomin's 2025 Franchise Disclosure Document, franchisees do not receive an exclusive territory. However, they do receive a protected territory, which means Zoomin Groomin promises not to establish a company-owned or franchised outlet within the franchisee's designated geographical area. Despite this protected territory, franchisees may still face competition from other franchisees, outlets that Zoomin Groomin owns, other channels of distribution, or competitive brands that Zoomin Groomin controls.
Zoomin Groomin also retains the right to make sales within a franchisee's territory using different trademarks or through different channels of distribution. For example, their affiliate, Purely Pets LLC d/b/a Salty Dawg, and its franchisees offer brick-and-mortar pet grooming services under the Salty Dawg trademarks. Zoomin Groomin, its parent company, or its affiliates may acquire or develop additional competitive brands in the future, which may operate and offer competitive products or services regardless of their proximity to a franchisee's protected territory or approved location.
Furthermore, franchisees are restricted from accepting orders from consumers or using other channels of distribution, such as the Internet, to make sales outside their territory without prior written approval from Zoomin Groomin. If a franchisee operates outside of their territory without permission, Zoomin Groomin may terminate the agreement, and any funds obtained from operating in another franchisee's territory may be passed over to that franchisee. This highlights the importance of adhering to the territorial restrictions and seeking approval for any activities outside the designated area.