What section of the Zoomin Groomin Franchise Agreement addresses transfers within an entity?
Zoomin_Groomin Franchise · 2025 FDDAnswer from 2025 FDD Document
7.5.Transfer within an Entity
A transfer of interest within a Franchise entity will not trigger the Right of First Refusal if only the percentage ownership changes rather than the identity of the owners. At the time of the desired transfer of interest within an entity, you must notify us in writing of the name and address of each officer, director, shareholder, member, partner or similar person and their respective ownership interest. Each such person of the Controlled Entity will sign the then current amendment and release forms or Franchise Agreement as required by us. We do not charge a transfer fee for this change.
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, Section 7.5 of the Franchise Agreement addresses transfers of interest within an entity. This section specifies that a transfer of interest within a franchise entity will not trigger the Right of First Refusal if only the percentage ownership changes, rather than the identity of the owners.
Zoomin Groomin requires written notification of the transfer, including the names and addresses of all officers, directors, shareholders, members, partners, or similar individuals, along with their respective ownership interests. Additionally, each person of the Controlled Entity must sign the then-current amendment and release forms or Franchise Agreement as required by Zoomin Groomin.
Importantly, Zoomin Groomin does not charge a transfer fee for this type of change. This policy can be beneficial for franchisees who may need to adjust ownership percentages within their existing business structure without incurring additional costs or triggering the Right of First Refusal, which would allow Zoomin Groomin to purchase the franchise business.