What is Addendum C to the DryJect Franchise Agreement?
Dryject Franchise · 2025 FDDAnswer from 2025 FDD Document
ill actively and substantially participate personally in the beneficial ownership and management of the DryJect Franchised Business.
- (b) In the event You are a business entity (including but not limited to a corporation, a limited liability corporation, a partnership, a limited liability partnership, a trust), in addition to being newly formed, You must complete and sign the Principal Owner's Statement attached to this Agreement as Addendum D and each individual with an ownership interest in You must also sign Addendum D. Further, You represent, warrant and covenant that:
- (i) You are newly formed and duly organized and validly exist under the laws of the state in which You were formed;
Source: Item 8 — BUSINESS RELATIONSHIP (FDD pages 68–229)
What This Means (2025 FDD)
According to the 2025 DryJect Franchise Disclosure Document, Addendum C to the Franchise Agreement is a Guaranty Agreement. Specifically, if the DryJect franchisee is a business entity, each person with a twenty percent (20%) or greater ownership interest in the business must sign the Guaranty Agreement attached as Addendum C. The franchisee must then provide the original signed Guaranty Agreement to DryJect.
This requirement ensures that individuals with significant financial stakes in the franchise operation are personally liable for the franchise's obligations. This is a common practice in franchising, as it provides the franchisor with an additional layer of security and recourse in case of default or breach of contract by the franchisee. The personal guaranty means that DryJect can pursue the personal assets of these owners to satisfy any debts or obligations of the franchise.
For a prospective DryJect franchisee, this means that if you plan to operate the franchise through a corporation, LLC, or other business entity, you and any co-owners holding 20% or more of the business will need to be prepared to sign a personal guaranty. This is a significant legal commitment, and you should carefully review the terms of the Guaranty Agreement with your attorney to fully understand the potential risks and liabilities involved.