Does Dryject have the authority to control the hiring or termination of a franchisee's employees?
Dryject Franchise · 2025 FDDAnswer from 2025 FDD Document
NOW, THEREFORE, in consideration of the mutual covenants and obligations contained herein, the parties agree as follows:
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- Franchisor and/or Franchisee shall disclose to Trainee some or all of Franchisor's Trade Secrets relating to DRYJECT SYSTEM.
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- Trainee shall receive Franchisor's Trade Secrets in confidence, maintain them in confidence, and use them only in the course of Trainee's employment by Franchisee and then only in connection with the development and/or maintenance by Franchisee of Business using DRYJECT SYSTEM for so long as Franchisee is licensed by Franchisor to use DRYJECT SYSTEM.
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- Trainee shall not at any time make copies of any documents or compilations containing some or all of Franchisor's Trade Secrets without the express written permission of Franchisor.
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- Trainee shall not disclose or permit the disclosure of Franchisor's Trade Secrets except to other employees of Franchisee and only to the limited extent necessary to train or assist other employees of Franchisee who have also signed Non-Disclosure, Non-Solicitation and Non-Competition Agreements or Confidentiality Agreement where appropriate as determined by Franchisor in the development or maintenance of Business using DRYJECT SYSTEM.
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- That all information and materials, including without limitation, specifications, techniques and compilations of data which Franchisor shall designate as confidential shall be deemed Franchisor's Trade Secrets for the purposes of this Agreement.
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- Trainee shall surrender DRYJECT Operations Manual and any other material containing some or all of Franchisor's Trade Secrets to Franchisee or to Franchisor, upon request, or upon termination of employment by Franchisee, or upon conclusion of the use for which the DRYJECT Operations Manual or other information or material may have been furnished to Trainee.
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- Trainee 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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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 Trainee of Franchisor's Trade Secrets, Trainee further undertakes and covenants that, during the time he is employed by Franchisee, he will not:
Source: Item 8 — BUSINESS RELATIONSHIP (FDD pages 68–229)
What This Means (2025 FDD)
Based on the 2025 Dryject Franchise Disclosure Document, the excerpts provided do not explicitly state that Dryject has direct authority to control the hiring or termination of a franchisee's employees. However, there are several indirect controls and requirements related to employees and their conduct.
Specifically, franchisees are required to ensure that their employees (referred to as "Trainees") adhere to Non-Disclosure, Non-Solicitation, and Non-Competition Agreements or Confidentiality Agreements, as determined by Dryject. These agreements protect Dryject's trade secrets and goodwill. Franchisees must also use their best efforts to ensure that Trainees act as required by these agreements.
Furthermore, Trainees must surrender the Dryject Operations Manual and any other confidential materials upon request or termination of employment. The agreement also stipulates that Trainees cannot engage in activities that could harm the goodwill associated with the Dryject system. While Dryject doesn't directly hire or fire employees, these stipulations give Dryject significant indirect control over franchisee employee conduct and create potential liabilities for franchisees if their employees violate these agreements. A prospective franchisee should seek clarification from Dryject regarding the extent of their control over employee-related matters and the potential liabilities associated with employee actions.