Does Zoomin Groomin reserve all rights not expressly granted in the Zoomin Groomin Franchise Agreement?
Zoomin_Groomin Franchise · 2025 FDDAnswer from 2025 FDD Document
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:
- (i) 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;
- (ii) 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;
- (iii) 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;
- (iv) 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;
- (v) 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;
- (vi) negotiate purchase agreements with vendors and suppliers which we reasonably believe are for the benefit of our franchisees; and,
- (vii) engage in any other business activities not expressly prohibited by the Franchise Agreement, anywhere.
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, Zoomin Groomin, its parent company, and its affiliates retain all rights that are not explicitly granted to the franchisee in the Franchise Agreement. This reservation of rights allows Zoomin Groomin to engage in various activities without compensating the franchisee.
Specifically, Zoomin Groomin reserves the right to use other distribution channels like the Internet, catalog sales, telemarketing, or direct marketing to solicit customers within the franchisee's territory, even using Zoomin Groomin's principal trademarks, without providing any compensation to the franchisee. They can also implement cross-territorial protocols for situations like group advertising, orders from individuals working in different territories, and other similar scenarios.
Furthermore, Zoomin Groomin retains the right to establish and operate, or grant others the right to establish and operate, similar businesses outside the franchisee's territory under any terms and conditions they deem appropriate. They can also engage in transactions with other businesses, even those that compete with the franchisee, and operate or franchise businesses under different trademarks that offer similar goods or services anywhere. Additionally, Zoomin Groomin can negotiate purchase agreements with vendors and suppliers for the benefit of its franchisees and engage in any other business activities not expressly prohibited by the Franchise Agreement, regardless of location.