Who serves as the settlement agent on transfers of ownership for a Zoomin Groomin franchise?
Zoomin_Groomin Franchise · 2025 FDDAnswer from 2025 FDD Document
Note 6: Transfer. In the event of a transfer and for the protection of both buyer and seller, Zoomin Groomin will serve as the settlement agent on transfers of ownership. However, no Transfer Fee is required if you transfer your Outlet to an entity in which you are the majority owner, or if you transfer the Outlet to your child, parent, sibling, or spouse. In addition, prior to transfer, all outstanding amounts due to Zoomin Groomin must be paid.
Source: Item 6 — OTHER FEES (FDD pages 16–20)
What This Means (2025 FDD)
According to Zoomin Groomin's 2025 Franchise Disclosure Document, in the event of a transfer of ownership, Zoomin Groomin will act as the settlement agent. This is intended to protect both the buyer and the seller during the transfer process.
However, there are exceptions to the transfer fee requirement. A franchisee is not required to pay a Transfer Fee if they transfer their outlet to an entity in which they are the majority owner, or if they transfer the outlet to their child, parent, sibling, or spouse.
Prior to any transfer, all outstanding amounts due to Zoomin Groomin must be paid in full. This ensures that the franchisor's financial interests are protected during the transfer process. This is a fairly standard practice in franchising, as franchisors typically want to ensure all debts are settled before a new franchisee takes over.