Am I allowed to engage in any business activities that conflict with my Dryject Franchise obligations?
Dryject Franchise · 2025 FDDAnswer from 2025 FDD Document
(a) Directly or indirectly, for himself 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
(b) Divert or attempt to divert, directly or indirectly, any business, business opportunity or customer of Franchisee's Business(s) to any competitor.
(ii) own, manage, maintain, operate, engage in, advise, consult with, invest in, be employed by or perform services as a director, officer, manager, representative, agent, or otherwise, or have any direct or indirect interest in any business that (a) specializes, in whole or in part, in offering to the public substantially similar products and/or services to those products and/or services offered by Your Franchised Business prior to the termination or expiration of this Agreement within a fifty (50) mile radius of any other franchisee's franchised business or any Franchisor-owned or affiliate-owned DryJect business (a "Competitive Business") or (b) grants franchises or licenses to others to operate a Competitive Business.
(b) At any time, during the Term of this Agreement or thereafter, You shall not, either directly or indirectly, for You, or through, on behalf of, or in conjunction with any person, persons, partnership, corporation or other business entity, use, in connection with the operation of any business other than the Franchised Business, any of the Licensed Rights, or any other names, marks, systems, insignias, or symbols provided or approved by Us to You pursuant to this Agreement, or cause or permit any such business to look like, copy or imitate a DryJect Franchised Business or to be operated in a manner tending to have such effect.
(c) You expressly acknowledge that You possess skills and abilities of a general nature and have other opportunities for exploiting such skills.
Consequently, You acknowledge that enforcement of the covenants made in this Section will not deprive You of Your personal goodwill or ability to earn a living.
- (d) It is the express intention of the parties to this Agreement to comply with all laws applicable to the covenants contained in this Agreement.
If any of the covenants contained in this Section are found to exceed in duration, geography or scope those permitted by applicable law, the parties expressly agree that such restrictive covenant may be reformed or modified by the final judgment of a court of competent jurisdiction or other lawful constituted authority to reflect a lawful and enforceable restriction, whether in duration, geography or scope, and that the covenants contained in this Section shall automatically be deemed to be amended and modified so as to comply with the judgment or order of such court or authority to the maximum extent permitted.
Source: Item 8 — BUSINESS RELATIONSHIP (FDD pages 68–229)
What This Means (2025 FDD)
According to Dryject's 2025 Franchise Disclosure Document, franchisees face restrictions on engaging in business activities that conflict with their Dryject franchise obligations, both during the term of the agreement and afterward. During the agreement, franchisees cannot directly or indirectly participate in any business that is the same as or similar to Dryject within the United States. Franchisees also cannot divert or attempt to divert any business, business opportunity, or customer to a competitor.
Post-termination, franchisees are restricted from owning, managing, operating, or investing in any business that offers substantially similar products or services to Dryject within a 50-mile radius of any other Dryject franchise or company-owned business. Additionally, franchisees cannot use Dryject's licensed rights, names, marks, or systems in any business other than the franchised Dryject business, nor can they operate a business that imitates a Dryject franchise.
Dryject also requires franchisees to acknowledge that they possess general skills and abilities and have other opportunities for earning a living, so the enforcement of these covenants will not deprive them of their personal goodwill or ability to earn a living. The agreement is intended to comply with all applicable laws, and any covenants found to be excessive in duration, geography, or scope may be reformed or modified by a court to reflect a lawful and enforceable restriction.