Is breaching any covenant of the Dryject Franchise Agreement considered a default?
Dryject Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
Such defaults include, but are not limited to:
(i) A failure by You to remit any payments when due under this Agreement;
(ii) A failure by You to establish, equip, maintain, or update the Franchised Business in accordance with Our System Standards;
(iii) A failure by You to submit to Us financial reports or other information required under this Agreement, or a failure to allow reasonable access to Your records within the time periods required by this Agreement;
(iv) A failure by You to operate the Franchised Business in accordance with Our Operations Manual or other manuals, or a failure by You to use products, methods, equipment or suppliers which conform to Our System Standards, or Your failure to maintain Our System Standards of quality service in the operation of the Franchised Business;
(v) A failure by You to obtain Our prior written approval or consent as expressly required by this Agreement;
(vi) A failure by You to accurately or completely record all sales made in, upon or from the Franchised Business at the time of sale;
(vii) A breach by You of any other covenant, term, or provision of this Agreement;
(viii) A failure by You to open the Franchised Business within one hundred and eighty (180) days of the execution of this Agreement;
(ix) A failure by You to comply with any of Your agreements with any third parties as related to the Franchised Business; or,
(x) A failure by You to consistently pay the debts of the Franchised Business as they become due.
(c) In the event You are delivered two (2) or more notices of Material Breach from Us within a twelve (12) month period pertaining to any one (1) or more of the foregoing events of default whether or not cured after notice, during the initial Term or any renewal terms of this Agreement, We shall have the right to terminate this Agreement.
Source: Item 8 — BUSINESS RELATIONSHIP (FDD pages 68–229)
What This Means (2025 FDD)
According to the 2025 Dryject Franchise Disclosure Document, failing to comply with any requirement or term of the agreement, or failing to carry out the terms in good faith, constitutes a default. This includes breaching any covenant, term, or provision within the agreement.
Specifically, the FDD lists several examples of defaults, such as failing to remit payments when due, failing to maintain the franchised business according to Dryject's system standards, or failing to submit required financial reports. It also includes failing to operate the business according to the operations manual, failing to obtain prior written approval when required, and failing to accurately record all sales. These examples illustrate the broad scope of what Dryject considers a default under the agreement.
Furthermore, the document states that receiving two or more notices of material breach within a 12-month period, even if cured, can give Dryject the right to terminate the agreement. This highlights the importance of adhering to all aspects of the franchise agreement to avoid potential termination. A prospective franchisee should carefully review the entire agreement to fully understand their obligations and the potential consequences of non-compliance.