Is there a deadline for completing the transfer of a Zoomin Groomin franchise after the franchisee's death or incapacity?
Zoomin_Groomin Franchise · 2025 FDDAnswer from 2025 FDD Document
91-0">If you do not conclude the proposed sale transaction within the 90-day period, the Right of First Refusal granted to us will continue in full force and effect.
7.7.Death or Incapacity
A. Definition
The term "incapacity" means a condition that prevents you from reasonably carrying out your duties under this Agreement for thirty (30) consecutive days.
B. Transfer
We may terminate this Agreement unless, within sixty (60) days of your death or incapacity, your executor, personal representative or guardian:
- i. seeks a transfer of your rights under this Agreement;
- ii. completes the transfer within six (6) months of your death or incapacity;
- iii. pays all monies owed to us, including the transfer fee, and
- iv. signs the then current transfer and release form, and
C. New Franchisee
The Transferee(s) must:
- i. meet the requirements of Section 7.8 entitled Transferee Requirements.
- ii. complete Initial Training, and
- iii. enter into a new Franchise Agreement on the then current form.
D. Interim Services
An interim operator must meet the Transferee Requirements as defined in Section 7.8, except such interim operator may not enter into a new Franchise Agreement.
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 dies or becomes incapacitated, their executor, personal representative, or guardian has specific deadlines to meet in order to transfer the franchise. The FDD defines "incapacity" as a condition preventing the franchisee from performing their duties for 30 consecutive days.
Within 60 days of the franchisee's death or incapacity, the executor, personal representative, or guardian must seek a transfer of the franchise rights. The transfer must be completed within six months of the death or incapacity. Additionally, all outstanding monies owed to Zoomin Groomin, including the transfer fee, must be paid. The executor, personal representative, or guardian must also sign the then-current transfer and release form.
Failure to meet these deadlines may result in Zoomin Groomin terminating the franchise agreement. This strict timeline ensures that the franchise continues to operate smoothly and that Zoomin Groomin receives any outstanding payments and necessary documentation in a timely manner. This also allows Zoomin Groomin to maintain brand standards and operational consistency.
The transferee must also meet certain requirements, including completing Zoomin Groomin's initial training and entering into a new franchise agreement on the then-current form. An interim operator can be appointed but must also meet specific requirements, although they are not required to enter into a new franchise agreement. Zoomin Groomin is entitled to reimbursement for reasonable expenses incurred while continuing services from the date of death or incapacity until the transfer or termination, plus 10% of gross revenues for the period they operate or assist in the operation of the franchised business.