Does Zoomin Groomin offer an exclusive territory to its franchisees?
Zoomin_Groomin Franchise · 2025 FDDAnswer from 2025 FDD Document
. A year will include each fiscal year (including any partial year) ending on December 31.
1.7.Dual Distribution
A. Protected Territory
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.
B. Limitations on Exclusivity
Your right to exclusivity is limited by our Reserved Rights under Section 1.1. (E) of this Agreement and this Section 1.7. You may also face competition from other franchisees, outlets that we own, other channels of distribution or competitive brands that we control for a Client that resides in your Territory.
C. Other Brands
We or an affiliate may make sales within your Territory using trademarks different from the ones you will use under this Agreement. As of the Effective Date, we and our parent plan to establish (or acquire) and operate or franchise a business under a different trademark which will sell goods or services similar to those you will offer. Under this plan, franchisees will offer pet grooming services through brick-and-mortar locations under a different trademark.
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, Zoomin Groomin does grant a "protected territory," which is defined as a geographical area where Zoomin Groomin promises not to establish another company-owned or franchised outlet. Despite this protected territory, franchisees may still face competition from other franchisees, outlets owned by Zoomin Groomin, other distribution channels, or competitive brands controlled by Zoomin Groomin. Franchisees are not allowed to solicit or accept orders from consumers outside of their territory or use other distribution channels to make sales outside their territory without prior written approval from Zoomin Groomin.
Zoomin Groomin retains specific rights that limit the exclusivity of the protected territory. Franchisees may encounter competition from other franchisees, company-owned outlets, alternative distribution channels, or competitive brands managed by Zoomin Groomin, even for clients located within their designated territory. Zoomin Groomin or its affiliates are also permitted to make sales within a franchisee's territory using different trademarks. The FDD mentions that Zoomin Groomin and its parent company plan to establish or acquire and operate or franchise a business under a different trademark that will offer similar goods or services, including pet grooming services through brick-and-mortar locations. This new franchise system and its franchisees may solicit and accept orders within an existing franchisee's territory.
If a Zoomin Groomin franchisee is granted permission to operate outside of their designated territory, it is temporary. To gain protected rights over a geographical region outside their territory, a franchisee must purchase franchise rights for that area, according to the then-current disclosure document and franchise agreement. By operating outside their territory, franchisees acknowledge that they may need to transition business relationships to another franchisee. Any undeveloped area could be sold to a new franchisee, and the existing franchisee has no right of first refusal in such areas. Franchisees operating outside their territory must follow Zoomin Groomin's plans for transitioning business to a new owner if Zoomin Groomin notifies them that a new franchisee has acquired the rights to operate in that area.
Operating outside of the assigned territory without permission from Zoomin Groomin can lead to termination of the franchise agreement, although termination is not the only remedy available to Zoomin Groomin. If a franchisee operates outside the rights and permissions granted and encroaches on another franchisee's territory, any funds obtained from that activity will be passed over to the franchisee whose territory was encroached upon. This policy underscores the importance of adhering to the territorial boundaries and obtaining proper authorization for any operations outside of the assigned area.