In California, does the registration of the Dryject franchise offering constitute approval, recommendation, or endorsement by the commissioner?
Dryject Franchise · 2025 FDDAnswer from 2025 FDD Document
, LLC, repurchases inventory which was sold by DRYJECT MANAGEMENT, LLC to You, fair market value must be paid for all merchandise bearing a name, trade name, label or other mark which identifies DRYJECT®."
"Covenants not to compete during the term of and upon termination or expiration of a Franchise Agreement are enforceable only under certain conditions according to Wisconsin Law."
EXHIBIT K SPECIFIC STATE RIDERS TO FRANCHISE AGREEMENT
As to any state law described in this Addenda that declares void or unenforceable any provision contained in the DryJect Management, LLC Franchise Agreement, DryJect Management, LLC reserves the right to challenge the constitutionality of the state law by bringing an appropriate legal action or raising the claim in a legal action or arbitration that you initiate.
CALIFORNIA RIDER TO THE DRYJECT MANAGEMENT, LLC FRANCHISE AGREEMENT
The Franchise Agreement is modified as follows: part of the Agreement. This Rider is being executed because the Licensed Business to be operated by you pursuant to the Agreement will be located in the State of California and/or because you are a resident of the State of California.
- 1 . Deferral of Initial Fees. The Department has determined that we, the franchisor, have not demonstrated we are adequately capitalized and/or that we must rely on franchise fees to fund our operations. The Commissioner has imposed a fee deferral condition, which requires that we defer the collection of all initial fees from California franchisees until we have completed all of our pre-opening obligations and you are open for business.
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- Termination/Non-renewal of Agreement by Franchisor. The California Business and Professions Code Sections 20000 through 20043 provide rights to the franchise owner concerning termination or non-renewal for a franchise. If the Franchise Agreement contains a provision that is inconsistent with the law, California law will control. Section 32 of the Agreement may not be enforceable under federal bankruptcy law.
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- Rights and Obligations upon Termination or Expiration.
Source: Item 8 — BUSINESS RELATIONSHIP (FDD pages 68–229)
What This Means (2025 FDD)
According to the 2025 Dryject Franchise Disclosure Document, there is no statement that the registration of the franchise offering in California constitutes approval, recommendation, or endorsement by the commissioner. However, the document does include a California Rider to the Dryject Management, LLC Franchise Agreement, indicating that the agreement is modified as part of the agreement because the licensed business will be located in California and/or the franchisee is a resident of California.
Furthermore, the FDD states that California's Franchise Investment Law prohibits a franchisor from disclaiming or denying representations made to the franchisee, the franchisee's ability to rely on those representations, or any violations of the law. It also mentions that any provision requiring the franchisee to waive specific provisions of the law is against public policy and unenforceable.
In addition, the Dryject FDD includes addenda for other states such as Wisconsin and Hawaii, explicitly stating that registration does not constitute approval, recommendation, or endorsement by the respective state's regulatory bodies. While there is no similar statement for California, the California Rider and the protections afforded by California's Franchise Investment Law suggest that franchisees in California have certain legal safeguards.