Is owing monies to the Zoomin Groomin franchisor considered 'cause' for termination?
Zoomin_Groomin Franchise · 2025 FDDAnswer from 2025 FDD Document
Item 17.h. of the Disclosure Document is modified to state that the franchisor can terminate immediately for insolvency, abandonment, mutual agreement to terminate, material misrepresentation, legal violation persisting 10 days after notice, repeated breaches, judgment, criminal conviction, monies owed to the franchisor more than 5 days past due, and imminent danger to public health or safety.
Source: Item 16 — RESTRICTIONS ON WHAT THE FRANCHISEE MAY SELL (FDD pages 37–41)
What This Means (2025 FDD)
According to Zoomin Groomin's 2025 Franchise Disclosure Document, owing money to the franchisor can be grounds for immediate termination of the franchise agreement. Specifically, if monies owed to Zoomin Groomin are more than 5 days past due, the franchisor has the right to terminate the agreement immediately.
This is a significant point for prospective franchisees to consider. It means that even a short delay in payments can lead to the termination of the franchise. Franchisees should ensure they have systems in place to manage their finances and meet all payment deadlines to Zoomin Groomin to avoid this situation.
It's important to note that California law may provide some additional protections to franchisees. The FDD mentions that certain provisions, including those related to termination, may not be enforceable under California law. However, franchisees should not rely on this and should always strive to meet their financial obligations to avoid any potential issues with Zoomin Groomin.