Are all owners of a Zoomin Groomin Franchised Business required to guarantee the obligations under the Franchise Agreement?
Zoomin_Groomin Franchise · 2025 FDDAnswer from 2025 FDD Document
[Item 9: 01. Financial Statements and Exhibits.]
FRANCHISE AGREEMENT
SINGLE UNIT
This contract ("Agreement") is between Zoomin Groomin USA LLC ("Zoomin Groomin", "we", "us", or "our") the entity and all Signators identified on the signature page, in your personal capacity, (collectively "Franchisee", "you", or "your").
Source: Item 15 — **OBLIGATION TO PARTICIPATE IN THE ACTUAL OPERATION OF THE FRANCHISED BUSINESS (FDD page 37)
What This Means (2025 FDD)
Based on the 2025 Zoomin Groomin Franchise Disclosure Document, the franchise agreement is made between Zoomin Groomin USA LLC and "all Signators identified on the signature page, in your personal capacity, (collectively 'Franchisee', 'you', or 'your')." This indicates that all individuals signing the agreement do so in their personal capacity, suggesting they are guaranteeing the obligations outlined in the agreement.
This requirement means that each person who signs the Zoomin Groomin Franchise Agreement is personally responsible for ensuring that all terms and conditions of the agreement are met. This personal guarantee extends to financial obligations, operational standards, and adherence to the Zoomin Groomin system. If the franchised business fails to meet its obligations, Zoomin Groomin can seek recourse directly from the individual signatories.
For a prospective Zoomin Groomin franchisee, this signifies a substantial commitment. Before signing, potential franchisees should fully understand the implications of a personal guarantee and ensure they are prepared to be held personally liable for the business's performance. It is advisable to seek legal counsel to review the franchise agreement and understand the full scope of the obligations and potential risks involved.