Who is responsible for the expenses associated with cooperating with any conversions resulting from Zoomin Groomin's transactions with other businesses?
Zoomin_Groomin Franchise · 2025 FDDAnswer from 2025 FDD Document
You will immediately stop providing Services to Clients located outside of your Territory and stop all activities associated with the operation of your Franchised Business outside of the Territory upon notification from Zoomin Groomin that a new franchisee has purchased franchise rights over such territory. Furthermore, you will provide a list of all Clients served by you in such area to the new franchisee and make commercially reasonable efforts to transition all business to the new franchisee. Time is of the essence when complying with a transition to a new franchisee.
Source: Item 9 — 01. Financial Statements and Exhibits. (FDD pages 68–156)
What This Means (2025 FDD)
According to Zoomin Groomin's 2025 Franchise Disclosure Document, if a franchisee is operating outside of their designated territory and Zoomin Groomin sells that area to a new franchisee, the original franchisee is responsible for transitioning business to the new owner. Specifically, the franchisee must provide a client list to the new franchisee and make commercially reasonable efforts to transition the business.
The FDD states that the franchisee bears the costs associated with this transition. This includes the expense of compiling the client list and the effort involved in actively transferring the client relationships to the new franchisee. Time is of the essence when complying with a transition to a new franchisee.
This means that if a Zoomin Groomin franchisee expands their services beyond their assigned territory and later needs to relinquish those clients to a new franchisee, they will incur the costs of doing so. This could involve administrative time, potential marketing efforts to introduce the new franchisee to existing clients, and any other resources required to ensure a smooth handover. The franchisee should factor in these potential costs when considering operating outside their territory, even with temporary permission from Zoomin Groomin.