Upon termination or expiration of the Zoomin Groomin agreement, does Zoomin Groomin have an obligation to purchase the franchisee's vehicle and other assets?

According to the 2025 Zoomin Groomin Franchise Disclosure Document, Zoomin Groomin has the right, but not the obligation, to purchase the franchisee's vehicle and other assets upon termination or expiration of the franchise agreement. If Zoomin Groomin chooses to purchase the vehicle, the fair market value will be determined by the Kelley Blue Book valuation at that time, without considering any improvements made to the vehicle for the franchise business.

The fair market value of other assets, including any improvements made to the vehicle, will be determined either by agreement between the franchisee and Zoomin Groomin or through an independent third-party valuation. This means that while Zoomin Groomin might buy the assets, the franchisee cannot force them to do so.

This arrangement carries implications for a franchisee upon exiting the Zoomin Groomin system. The franchisee may need to find an alternative buyer for their vehicle and other assets if Zoomin Groomin declines to purchase them. The valuation method for the vehicle (Kelley Blue Book without considering improvements) could also result in a lower price than the franchisee expects, especially if they have invested in customizing the vehicle for the mobile grooming business. Therefore, franchisees should carefully consider the potential resale value of their assets and factor this into their financial planning.