Can Zoomin Groomin own or merge with a business that competes with a Zoomin Groomin franchise?

According to the 2025 Zoomin Groomin FDD, Zoomin Groomin or its affiliates have the right to engage in activities that might compete with a franchisee's business. Specifically, Zoomin Groomin may make sales within a franchisee's territory using different trademarks. The FDD states that Zoomin Groomin and its parent company plan to establish (or acquire) and operate or franchise a business under a different trademark that sells similar goods or services to those offered by Zoomin Groomin franchisees. This new franchise system will offer pet grooming services through brick-and-mortar locations under a different trademark and will solicit and accept orders within a franchisee's territory.

This dual distribution strategy means that a Zoomin Groomin franchisee could face competition from other channels or competitive brands that Zoomin Groomin controls, even within their protected territory. While franchisees receive a protected territory, it is not an exclusive territory. This protected territory only means that Zoomin Groomin promises not to establish a Zoomin Groomin company-owned or franchised outlet within that area.

This arrangement carries potential risks for franchisees, as they may have to compete with other businesses owned or franchised by Zoomin Groomin, offering similar services under a different brand. Prospective franchisees should consider the potential impact of this dual distribution strategy on their business and revenue. It is important to understand how Zoomin Groomin plans to manage potential conflicts and ensure fair competition between its different brands and franchise systems.