What section of the Zoomin Groomin Franchise Agreement discusses termination by the franchisor with cause?
Zoomin_Groomin Franchise · 2025 FDDAnswer from 2025 FDD Document
CA Bus & Prof Code Section 20021
Except as otherwise provided by this chapter, no franchisor may terminate a franchise prior to the expiration of its term, except for good cause. Except as provided in Section 20021, good cause shall be limited to the failure of the franchisee to substantially comply with the lawful requirements imposed upon the franchisee by the franchise agreement after being given notice at least 60 days in advance of the termination and a reasonable opportunity, which in no event shall be less than 60 days from the date of the notice of noncompliance, to cure the failure. The period to exercise the right to cure shall not exceed 75 days unless there is a separate agreement between the franchisor and franchisee to extend the time.
CA Bus & Prof Code Section 20021
If during the period in which the franchise is in effect, there occurs any of the following events which is relevant to the franchise, immediate notice of termination without an opportunity to cure, shall be deemed reasonable:
(a) The franchisee or the business to which the franchise relates has been the subject of an order for relief in bankruptcy, judicially determined to be insolvent, all or a substantial part of the assets thereof are assigned to or for the benefit of any creditor, or the franchisee admits his or her inability to pay his or her debts as they come due;
(b) The franchisee abandons the franchise by failing to operate the business for five consecutive days during which the franchisee is required to operate the business under the terms of the franchise, or any shorter period after which it is not unreasonable under the facts and circumstances for the franchisor to conclude that the franchisee does not intend to continue to operate the franchise, unless such failure to operate is due to fire, flood, earthquake, or other similar causes beyond the franchisee's control;
(c) The franchisor and franchisee agree in writing to terminate the franchise;
(d) The franchisee makes any material misrepresentations relating to the acquisition of the franchise business or the franchisee engages in conduct which reflects materially and unfavorably upon the operation and reputation of the franchise business or system;
Source: Item 16 — RESTRICTIONS ON WHAT THE FRANCHISEE MAY SELL (FDD pages 37–41)
What This Means (2025 FDD)
According to the 2025 Zoomin Groomin Franchise Disclosure Document, several sections address the franchisor's right to terminate the franchise agreement with cause. Specifically, the document references California Business and Professions Code Sections 20021, which outline the conditions under which Zoomin Groomin can terminate a franchise agreement prior to its expiration due to a franchisee's failure to comply with the agreement.
The FDD specifies that Zoomin Groomin must provide at least 60 days' notice of termination and an opportunity to cure the failure, which cannot be less than 60 days from the notice date. The cure period cannot exceed 75 days unless both parties agree to an extension. However, there are certain events that allow for immediate termination without an opportunity to cure, such as the franchisee's insolvency, abandonment of the franchise, mutual agreement to terminate, material misrepresentations, or conduct that reflects unfavorably on the franchise.
These provisions are important for prospective Zoomin Groomin franchisees to understand, as they define the circumstances under which their franchise can be terminated and what rights they have to remedy any breaches of the franchise agreement. Franchisees should be aware of the specific conditions that could lead to termination and ensure they comply with all requirements to avoid potential issues. Additionally, the modifications to Item 17 in the disclosure document further clarify the grounds for termination and the franchisee's rights in such situations.