What is the minimum opportunity to cure that Zoomin Groomin must provide to a franchisee after notice of noncompliance?
Zoomin_Groomin Franchise · 2025 FDDAnswer from 2025 FDD Document
Except as otherwise provided by this chapter, no franchisor may terminate a franchise prior to the expiration of its term, except for good cause. Except as provided in Section 20021, good cause shall be limited to the failure of the franchisee to substantially comply with the lawful requirements imposed upon the franchisee by the franchise agreement after being given notice at least 60 days in advance of the termination and a reasonable opportunity, which in no event shall be less than 60 days from the date of the notice of noncompliance, to cure the failure. The period to exercise the right to cure shall not exceed 75 days unless there is a separate agreement between the franchisor and franchisee to extend the time.
CA Bus & Prof Code Section 20021
If during the period in which the franchise is in effect, there occurs any of the following events which is relevant to the franchise, immediate notice of termination without an opportunity to cure, shall be deemed reasonable:
(a) The franchisee or the business to which the franchise relates has been the subject of an order for relief in bankruptcy, judicially determined to be insolvent, all or a substantial part of the assets thereof are assigned to or for the benefit of any creditor, or the franchisee admits his or her inability to pay his or her debts as they come due;
(b) The franchisee abandons the franchise by failing to operate the business for five consecutive days during which the franchisee is required to operate the business under the terms of the franchise, or any shorter period after which it is not unreasonable under the facts and circumstances for the franchisor to conclude that the franchisee does not intend to continue to operate the franchise, unless such failure to operate is due to fire, flood, earthquake, or other similar causes beyond the franchisee's control;
(c) The franchisor and franchisee agree in writing to terminate the franchise;
(d) The franchisee makes any material misrepresentations relating to the acquisition of the franchise business or the franchisee engages in conduct which reflects materially and unfavorably upon the operation and reputation of the franchise business or system;
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 minimum opportunity to cure a failure to comply with the franchise agreement is dependent on the location of the franchise. In general, Zoomin Groomin may terminate a franchise agreement if the conditions requiring termination remain uncured 30 days after the franchisee receives notice of the issue and an opportunity to correct it. These conditions include violating any term or condition of the agreement, the Franchisee Operations Manual, or any other agreement with Zoomin Groomin, or if any amount owed to Zoomin Groomin is more than 30 days past due.
However, California law provides additional protections to franchisees. Zoomin Groomin cannot terminate a franchise in California before the end of its term except for good cause. Good cause is defined as the franchisee's failure to substantially comply with the lawful requirements of the franchise agreement. In California, a franchisee must receive at least 60 days' advance notice of termination and a reasonable opportunity to cure the failure, which must be no less than 60 days from the date of the notice of noncompliance. The period to cure cannot exceed 75 days unless Zoomin Groomin and the franchisee agree to extend the time.
Certain events in California allow for immediate termination without an opportunity to cure, including if the franchisee has been subject to a bankruptcy order, is judicially determined to be insolvent, assigns a substantial part of their assets to creditors, or admits their inability to pay debts. Immediate termination is also allowed if the franchisee abandons the business for five consecutive days, if both parties agree to terminate in writing, or if the franchisee makes material misrepresentations relating to the franchise acquisition or engages in conduct that reflects materially and unfavorably upon the franchise business or system. It is important to note that this disclosure document summarizes the franchise agreement and all agreements should be read carefully.