Does Zoomin Groomin reserve any rights not expressly granted in the Franchise Agreement?
Zoomin_Groomin Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
Our 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 you will offer. Salty Dawg franchisees offer brickand-mortar pet grooming services and related products (as opposed to mobile), which may include soliciting or accepting orders from customers within your Territory. Salty Dawg does not currently operate any company owned outlets, but they may do so in the future. Salty Dawg and Zoomin Groomin share the same principal business address, but their staff maintain physically separate offices and they provide training at different times or at different facilities. We plan to avoid and resolve conflicts between us and our franchisees and between the franchisees of each system regarding territory, customers, and franchisor support, by establishing limited contractual rights, extending the opportunities to existing franchisees, and by developing internal systems and processes. However, we will ultimately be the sole determiner as to conflicts regarding territory, customers, and franchisor support. Salty Dawg and Zoomin Groomin share the same principal business address, but their staff maintain physically separate offices and they provide training at different times or at different facilities.
Source: Item 12 — TERRITORY (FDD pages 32–34)
What This Means (2025 FDD)
According to Zoomin Groomin's 2025 Franchise Disclosure Document, Zoomin Groomin, its parent, and its affiliates reserve all rights not expressly granted in the Franchise Agreement. These reserved rights allow Zoomin Groomin to engage in activities that could potentially impact a franchisee's territory and business operations.
Specifically, Zoomin Groomin 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 a franchisee's territory without providing any compensation to the franchisee. They can also implement cross-territorial protocols for situations like group advertising or orders from individuals working in different territories. Additionally, Zoomin Groomin can establish and operate, or grant rights to others to establish and operate, similar businesses outside of a franchisee's territory under terms they deem appropriate.
Zoomin Groomin also reserves the right to engage in transactions with other businesses, even those that are competitive, and may have competing outlets within a franchisee's territory. However, they will not convert any acquired business in the franchisee's territory to a Zoomin Groomin franchise using their primary trademarks during the term of the Franchise Agreement. Zoomin Groomin can operate or franchise a business under a different trademark that sells similar goods or services anywhere. They can also negotiate purchase agreements with vendors and suppliers that they believe benefit their franchisees and engage in any other business activities not expressly prohibited by the Franchise Agreement.
Furthermore, the FDD mentions that Zoomin Groomin's affiliate, Purely Pet LLC d/b/a Salty Dawg, franchises a business under the Salty Dawg marks, which sell similar goods or services. 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 regarding territory, customers, and franchisor support, they will ultimately be the sole determiner in these conflicts. These reserved rights and potential conflicts with affiliated brands are important considerations for prospective franchisees.