Is Addendum A relevant to defining a Dryject franchisee's Designated Territory?
Dryject Franchise · 2025 FDDAnswer from 2025 FDD Document
-
- You desire to use Our System, Marks and goodwill to establish and operate a DryJect franchised business in the territory described, and upon the terms and conditions set forth, in this Agreement;
-
- 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.
- (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.
- (e) You agree that You will not accept business nor perform services outside of Your Designated Territory without Our prior written approval. If You accept business from outside Your Designated Territory, which business is located in another franchise owner's designated territory, then We have the right to require You to forfeit all of the Gross Revenues You earned in the designated territory to the franchise owner who operates within the designated territory where that business is located.
Source: Item 23 — RECEIPT (FDD pages 50–68)
What This Means (2025 FDD)
According to Dryject's 2025 Franchise Disclosure Document, Addendum A is indeed relevant to defining a franchisee's Designated Territory. The franchise agreement explicitly states that the territory for the Dryject franchised business is detailed in Addendum A, which is entitled "Franchisee's Designated Territory." This addendum provides a specific description of the area in which the franchisee is granted the right to operate.
Dryject grants the franchisee the right to operate a DryJect Franchised Business and use their Licensed Rights within the Designated Territory. The agreement emphasizes that Dryject will not grant others the right to operate a DryJect business within the franchisee's Designated Territory, although Dryject does reserve the right to sell products and services at discounted rates to customers with multiple facilities, some of which may be located within the franchisee's territory.
Furthermore, the FDD states that Dryject cannot alter the Designated Territory as defined in the agreement and Addendum A, as long as the franchisee complies with all the terms and conditions of the agreement. This provides a level of assurance to the franchisee regarding the stability of their territory. However, the franchisee is restricted from accepting business or performing services outside their Designated Territory without prior written approval from Dryject, with potential financial penalties for violations.