Under what conditions might Zoomin Groomin pay a client directly for a service complaint?
Zoomin_Groomin Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
Source: Item 9 — 01. Financial Statements and Exhibits. (FDD pages 68–156)
What This Means (2025 FDD)
Based on the 2025 Zoomin Groomin Franchise Disclosure Document, Zoomin Groomin itself is not obligated to compensate a franchisee for soliciting or accepting sales from a client within the franchisee's territory. Zoomin Groomin states that it will normally direct all inquiries for mobile pet grooming from within a franchisee's territory to that franchisee's business. However, the document does outline a situation where a franchisee may have to compensate another franchisee.
Specifically, if a Zoomin Groomin franchisee provides services or operates their franchised business in another franchisee's territory, or fails to comply with specific operational guidelines after being notified that their permission to operate outside their territory is revoked due to a new franchisee purchasing rights, then the original franchisee must compensate the other franchisee. This compensation is equivalent to 100% of all grooming and convenience fees charged in the other franchisee's territory.
In such a case, the franchisee operating outside their territory must notify the franchisee who has rights to that territory and provide payment within ten days of receiving payment for the services. This policy ensures that franchisees respect territorial boundaries and that any business conducted outside of those boundaries is appropriately compensated to the franchisee who holds the rights to that area.