Under what conditions might Zoomin Groomin grant me additional franchise territories?
Zoomin_Groomin Franchise · 2025 FDDAnswer from 2025 FDD Document
. A year will include each fiscal year (including any partial year) ending on December 31.
1.7.Dual Distribution
A. Protected Territory
You will not receive an exclusive territory. You may face competition from other franchisees, from outlets that we own, or from other channels of distribution or competitive brands that we control. However, you will receive a protected territory, meaning a geographical area within which we promise not to establish a Zoomin Groomin company owned or franchised outlet. You may not accept orders from consumers to provide Services outside of your Territory, nor may you use other channels of distribution, such as the Internet, catalog sales, telemarketing, or other direct marketing, to make sales outside your Territory without our prior written approval as provided in Section 1.3 (C) of this Agreement.
B. Limitations on Exclusivity
Your right to exclusivity is limited by our Reserved Rights under Section 1.1. (E) of this Agreement and this Section 1.7. You may also face competition from other franchisees, outlets that we own, other channels of distribution or competitive brands that we control for a Client that resides in your Territory.
C. Other Brands
We or an affiliate may make sales within your Territory using trademarks different from the ones you will use under this Agreement. As of the Effective Date, we and our parent plan to establish (or acquire) and operate or franchise a business under a different trademark which will sell goods or services similar to those you will offer. Under this plan, franchisees will offer pet grooming services through brick-and-mortar locations under a different trademark. As the new franchise system develops, the new franchisor or its franchisees who use the different trademark will solicit and accept orders within your Territory.
D. Profit Passover
We are not obligated to pay compensation to you for soliciting or accepting sales from a Client inside your Territory. However, we will normally direct all inquiries for mobile pet grooming from within your Territory to your Franchised Business. Should you (i) provide Services or otherwise operate your Franchised Business in another franchisee's territory or (ii) fail to strictly comply with Section 1.3 (C) within fifteen (15) days after being advised that our permission to provide Services or otherwise operate the Franchised Business outside the Territory is revoked because a new franchisee purchased certain rights, then you will pay to the franchisee in whose territory such Services were provided an amount equal to 100% of all grooming and convenience fees charged. Furthermore, you must notify such franchisee who has rights in such territory and provide payment to them within ten (10) days of receipt of payment by you.
1.8.Advertising
A.
Source: Item 9 — 01. Financial Statements and Exhibits. (FDD pages 68–156)
What This Means (2025 FDD)
According to the 2025 Zoomin Groomin FDD, while franchisees do not receive an exclusive territory, they can receive a protected territory. This means Zoomin Groomin promises not to establish a company-owned or franchised outlet within the franchisee's defined geographical area. However, this protected territory does not prevent competition from other franchisees, company-owned outlets, other distribution channels, or competitive brands controlled by Zoomin Groomin.
To operate outside of the assigned territory, a franchisee must obtain prior written approval from Zoomin Groomin, as detailed in Section 1.3 (C) of the Franchise Agreement. However, any permission granted to operate outside the territory is temporary. The only way to secure rights to a geographical region outside the initial territory is to purchase franchise rights for that specific area, following the guidelines in the current disclosure document and franchise agreement.
If a franchisee operates outside their designated territory, they must stop providing services to clients in that area immediately if Zoomin Groomin notifies them that a new franchisee has purchased the rights to that territory. The original franchisee must also provide a list of clients served in the new franchisee's area and make reasonable efforts to transition the business to the new franchisee. Operating outside the assigned territory without permission can lead to termination of the franchise agreement, and any funds earned in that territory may be transferred to the franchisee who holds the rights to it.