Is breaching any covenant of the Dryject Franchise Agreement a cause for termination?
Dryject Franchise · 2025 FDDAnswer from 2025 FDD Document
- (b) You acknowledge that the strict performance of all the terms of this Agreement is necessary not only for Our protection, but also for the protection of You and Our other franchisees.
As a result, You acknowledge and agree that the occurrence of any of the following events, each or any of which shall be considered a Material Breach default of this Agreement, constitutes reasonable grounds for termination of this Franchise Agreement by Us; provided, however that You shall be given the opportunity, within fifteen (15) days after receipt of written notice of such Material Breach, to cure the default by promptly providing proof of cure to Us.
Notwithstanding the foregoing, if the breach is curable but is of a nature which cannot reasonably be cured within such fifteen (15) day period and You have commenced and are continuing to make good faith efforts to cure the breach, You shall be given an additional reasonable period of time to cure the default, and this Agreement shall not terminate.
If any such default is not cured within the time as specified by Us, this Agreement shall terminate effective immediately without further notice to You.
You shall be in default under this Agreement for failure to comply with any of the requirements imposed by the Agreement, or for failure to carry out the terms of this Agreement in good faith.
Source: Item 8 — BUSINESS RELATIONSHIP (FDD pages 68–229)
What This Means (2025 FDD)
According to Dryject's 2025 Franchise Disclosure Document, a franchisee's failure to comply with the requirements of the Franchise Agreement, or failure to carry out the terms of the agreement in good faith, constitutes a default that could lead to termination. However, Dryject typically provides an opportunity to cure the default within fifteen days of written notice. If the breach cannot be reasonably cured within fifteen days, Dryject may grant an additional reasonable period to cure the default, provided the franchisee has commenced and is continuing to make good faith efforts to cure the breach. If the default remains uncured after the specified time, the agreement can be terminated immediately without further notice.
Dryject emphasizes that strict performance of all terms in the agreement is crucial for the protection of both Dryject and its franchisees. The FDD specifies that certain events are considered a Material Breach default of the agreement, which constitutes reasonable grounds for termination.
It's important to note that these termination provisions may be superseded by state laws such as the Wisconsin Fair Dealership Law, which grants franchisees certain rights, including a notice period and an opportunity to remedy deficiencies before termination. Therefore, franchisees should be aware of the specific laws in their state that may affect the termination terms outlined in the Dryject Franchise Agreement.