What action must a Dryject franchisee take if litigation involving the Patents is instituted or threatened against them?

According to Dryject's 2025 Franchise Disclosure Document, if a Dryject franchisee faces litigation or a threat of litigation involving the patents licensed to them, they are required to take specific actions. The franchisee must promptly notify Dryject of the situation and fully cooperate with Dryject in the defense or settlement of the litigation. This means the franchisee must provide all necessary information and assistance to Dryject to help them understand and address the legal challenge.

Dryject retains the right to control any litigation involving a patent licensed to the franchisee should they choose to protect the patents or defend the franchisee against infringement claims. This implies that while the franchisee must cooperate, Dryject has the ultimate authority in deciding the legal strategy and course of action. This is a common arrangement in franchising, as the franchisor has a vested interest in protecting its intellectual property and brand reputation.

This requirement ensures that Dryject is aware of any potential threats to its patents and can take appropriate action to protect them. For a prospective franchisee, this means they will not be solely responsible for handling complex patent litigation, but they must be prepared to actively participate and support Dryject's efforts. It is important for franchisees to understand the scope of their cooperation and Dryject's control in such matters, as outlined in the Franchise Agreement.