Does Zoomin Groomin reserve the right to establish and operate a franchised business?
Zoomin_Groomin Franchise · 2025 FDDAnswer from 2025 FDD Document
another franchisees territory or (ii) fail to stop providing Services or otherwise operate the Franchised Business within fifteen (15) days after being advised that our permission to provide Services or otherwise operate the Franchised Business outside the Territory is revoked because a new franchisee purchased certain rights, then you will pay to the franchisee in whose territory such Services were provided an amount equal to 100% of all grooming and convenience fee collected by you for such Services. Furthermore, you must notify such franchisee who has rights in such territory and provided payment to them within ten (10) days of receipt of payment by you.
Continuation of your territorial rights does not depend on achieving a certain sales volume, market penetration, or other contingency, and we may not alter your franchise Territory, even if there is a population increase in your Territory. However, your right to operate a Franchised Business in the Territory are subject to certain rights reserved by us. We, our parent, and our affiliates reserve all rights not expressly granted in the Franchise Agreement. For example, we, our parent, and our affiliates have the right to:
(a) use other channels of distribution, such as the Internet, catalog sales, telemarketing, or other direct marketing sales, to solicit or accept customers within your Territory using our principal trademarks (or another trademark) without any compensation to you;
(b) to implement cross-territorial protocols and other guidelines applicable to such situations as group advertising buys by multiple franchisees which may extend into multiple territories, solicitation of orders of individuals who may reside in one Territory, yet work in another, and other cross-territorial situations;
(c) to establish and operate, and grant rights to others to establish and operate a Franchised Business or similar businesses at any locations outside of the Territory and on any terms and conditions we deem appropriate;
(d) to own, develop, acquire, be acquired by, merge with, or otherwise engage in any transaction with another businesses (competitive or not), which may offer products and services like your Franchised Business and may have one or more competing outlets within your Territory, however, we will not convert any acquired business in your Territory to a franchise using our primary trademarks during the Term of your Franchise Agreement;
(e) to operate or franchise a business under a different trademark which such business sells or will sell goods or services like those you will offer, anywhere;
(f) to negotiate purchase agreements with vendors and suppliers which we reasonably believe are for the benefit of our franchisees; and,
(g) to engage in any other business activities not expressly prohibited by the Franchise Agreement, anywhere.
Source: Item 12 — TERRITORY (FDD pages 32–34)
What This Means (2025 FDD)
According to Zoomin Groomin's 2025 Franchise Disclosure Document, the company retains specific rights regarding establishing and operating franchised businesses. Zoomin Groomin reserves the right to establish and operate, and grant rights to others to establish and operate a Franchised Business or similar businesses at any locations outside of the franchisee's territory and on any terms and conditions they deem appropriate. This means that while franchisees are granted an exclusive territory, Zoomin Groomin can still operate or franchise similar businesses outside of that territory.
Zoomin Groomin also retains the right to use other channels of distribution, such as the Internet, catalog sales, telemarketing, or other direct marketing sales, to solicit or accept customers within the franchisee's territory using their principal trademarks (or another trademark) without any compensation to the franchisee. This could potentially impact a franchisee's revenue if customers within their territory choose to purchase through these alternative channels.
Furthermore, Zoomin Groomin's affiliate, Purely Pet LLC d/b/a Salty Dawg, franchises a business under the Salty Dawg marks, which sell goods or services similar to those Zoomin Groomin franchisees offer. Salty Dawg franchisees offer brick-and-mortar pet grooming services and related products, which may include soliciting or accepting orders from customers within a Zoomin Groomin franchisee's territory. While Zoomin Groomin states they plan to avoid and resolve conflicts between the two franchise systems, they will ultimately be the sole determiner as to conflicts regarding territory, customers, and franchisor support. This could create potential conflicts of interest, as Zoomin Groomin has the final say in resolving disputes between its own franchisees and those of its affiliate.
These reserved rights and potential conflicts with the Salty Dawg franchise highlight the importance of a prospective franchisee carefully considering the potential impact on their business. It is essential to understand the limitations of the exclusive territory and the potential for competition from other channels and affiliated businesses. A prospective franchisee should seek clarification from Zoomin Groomin regarding conflict resolution processes and the extent to which these reserved rights may affect their operations and profitability.