What actions are prohibited for the Signer that could harm the goodwill associated with the Dryject System?
Dryject Franchise · 2025 FDDAnswer from 2025 FDD Document
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- Signer shall not, directly or indirectly, do any act or omit to do any act, which would or would likely to be injurious or prejudicial to the goodwill associated with DRYJECT SYSTEM.
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- Except to the extent prohibited by the laws of the state where the Franchised Business is located, in order to protect the goodwill and unique qualities of DRYJECT SYSTEM and the confidentiality and value of Franchisor's Trade Secrets, and in consideration for the disclosure to Signer of Franchisor's Trade Secrets, Signer further undertakes and covenants that, during the time Franchisee is a franchisee of Franchisor and for the two (2) years following the termination or expiration of Franchisee's Franchise Agreement, Signer will not:
- (a) Directly or indirectly, for himself/herself or through, on behalf of or in conjunction with any person, partnership or business entity, engage in or acquire any financial or beneficial interest in (including interest in business entities, partnerships, trusts, unincorporated associations or joint ventures), advise, help or make loans to any entity involved in business which is the same as or similar to that conducted by "DryJect"® which business is, or is intended to be located, within the United States; or
Source: Item 8 — BUSINESS RELATIONSHIP (FDD pages 68–229)
What This Means (2025 FDD)
According to the 2025 Dryject FDD, the Signer, who may have access to Dryject's trade secrets, is prohibited from performing any action that could be harmful or prejudicial to the goodwill associated with the Dryject System. This is a broad restriction designed to protect the brand's reputation and value.
Additionally, to protect the goodwill and unique qualities of the Dryject System, the Signer agrees that during the time the Franchisee is a franchisee and for two years after the termination or expiration of the Franchise Agreement, the Signer will not engage in or acquire any financial interest in any business that is the same as or similar to that conducted by Dryject within the United States. This includes advising, helping, or making loans to any such entity. This non-compete clause is in place to prevent the Signer from using the knowledge and trade secrets gained from Dryject to benefit a competing business.
These restrictions are typical in franchise agreements to safeguard the franchisor's brand, trade secrets, and market position. Prospective franchisees should carefully review these clauses and understand the implications for themselves and any individuals who may sign agreements related to the franchise, such as employees or family members. It is important to consider how these restrictions might affect future business opportunities and to seek legal advice if needed.