Is Addendum A to the Dryject agreement relevant to the definition of the Designated Territory?
Dryject Franchise · 2025 FDDAnswer from 2025 FDD Document
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- The territory described in Addendum A to this Agreement is being made available by Us as a territory for a DryJect franchised business ("Designated Territory").
On the terms and conditions of this Agreement, We hereby grant to You the right to establish and operate a DryJect franchise (the "Franchise" or "Franchised Business") and to use the Licensed Rights associated with the Franchised Business and developed by Us. The Franchise is granted for the area set out in the attached Addendum A to this Agreement, entitled Franchisee's Designated Territory.
- (a) You shall have the right to operate a DryJect Franchised Business, and to use Our Licensed Rights in Franchisee's Designated Territory. We will not grant to others (nor reserve unto ourselves except as specified in this Agreement) the right to operate a DryJect business within Your Designated Territory. However, We reserve the right to establish policies pertaining to the sale of products and services at discounted rates to customers operating multiple facilities, some of which may be located within Your Designated Territory ("Reserved Accounts"). In the event that You do not agree to provide a Reserved Account with the contracted goods or services for a facility operated within Your Designated Territory at the discounted rate, or You are unable to provide the required goods or services within Your Designated Territory, We, any of Our affiliates or another of Our franchisees may supply the goods or services, and You shall not be entitled to receive any fee or other compensation associated with the transaction.
- (d) As long as You are in compliance with all terms and conditions of this Agreement, We may not otherwise alter Your Designated Territory, as it is defined in this Agreement, and as it is more specifically identified in Addendum A to this Agreement.
Source: Item 23 — RECEIPT (FDD pages 50–68)
What This Means (2025 FDD)
According to Dryject's 2025 Franchise Disclosure Document, Addendum A to the franchise agreement is indeed relevant to defining the franchisee's designated territory. The document states that the territory for the DryJect franchised business is described in Addendum A, which is specifically entitled "Franchisee's Designated Territory." This addendum provides a detailed description of the area granted to the franchisee.
Furthermore, the FDD emphasizes the importance of this designated territory by stating that DryJect will not grant others the right to operate a DryJect business within the franchisee's designated territory. However, DryJect retains the right to establish policies for discounted rates to customers with multiple facilities, some of which may be located within the franchisee's territory. If the franchisee cannot provide services to these "Reserved Accounts" at the discounted rate, DryJect or another franchisee may step in, and the original franchisee will not receive compensation for that transaction.
Additionally, DryJect reserves the right to use and franchise other trade names and trademarks within the franchisee's designated territory, as long as they are not designated as Licensed Rights in the future. The document also clarifies that DryJect may not alter the franchisee's designated territory, as defined in the agreement and Addendum A, as long as the franchisee complies with all terms and conditions of the agreement. This indicates that Addendum A serves as a crucial component in understanding the scope and limitations of the franchisee's operational area.
In summary, Addendum A plays a vital role in defining the franchisee's designated territory, outlining the geographic boundaries within which the franchisee has the right to operate a DryJect business. It also specifies certain rights and reservations held by DryJect within that territory, which could impact the franchisee's business operations and revenue potential.