factual

Where must claims against Dryject that cannot be submitted to arbitration be brought?

Dryject Franchise · 2025 FDD

Answer from 2025 FDD Document

sclosure Document, Sections (c) (renewal) and (m) (transfer), is amended to omit the requirements that an Indiana Franchisee sign a general release of claims as a condition of renewal or transfer. This will not prevent Franchisor from requiring you to sign a general release of claims as part of a settlement of a dispute.

ADDENDUM TO FRANCHISE DISCLOSURE DOCUMENT FOR STATE OF MARYLAND

The Franchise Disclosure Document for DryJect Management, LLC offering franchises under the "DryJect®" mark for use in the State of Maryland shall be amended as follows:

Item 5, "Initial Fee" shall be amended by the addition of the following paragraph:

Based upon the franchisor's financial condition, the Maryland Securities Commissioner has required a financial assurance. Therefore, all initial fees and payments owed by franchisees shall be deferred until the franchisor completes its pre-opening obligations under the franchise agreement.

Item 17(v), "Choice of Forum", shall be amended by adding the following paragraph:

Section 4-216(c)(25) of the Maryland Franchise Registration and Disclosure Law requires a franchisor to file an irrevocable consent to be sued in Maryland. A franchisee may bring a lawsuit in Maryland for claims arising under the Maryland Franchise Registration and Disclosure Law.

Any claims arising under the Maryland Franchise Registration and Disclosure law must be brought within three years after the franchise is granted.

No statement, questionnaire, or acknowledgment signed or agreed to by a franchisee in connection with the commencement of the franchise relationship shall have the effect of (i) waiving any claims under any applicable state franchise law, including fraud in the inducement, or (ii) disclaiming reliance on any statement made by any franchisor, franchise seller, or other person acting on behalf of the franchisor. This provision supersedes any other term of any document executed in connection with the franchise.

ADDENDUM TO THE FRANCHISE DISCLOSURE DOCUMENT FOR DRYJECT MANAGEMENT, LLC

STATE OF MINNESOTA

  1. Item 5 "Initial Fee" is amended by the addition of the following paragraph:

"All initial fees and payments shall be deferred until such time as the franchisor has fulfilled its initial pre-opening obligations and the franchise is open for business."

  1. Item 13 is amended to add the following:

DRYJECT MANAGEMENT, LLC will protect your right to use the DryJect® Mark and Trade Name or will indemnify you against any loss, costs, or expenses arising out of any claim, suit, or demand regarding your use of the Marks or Trade Name.

  1. Item 17, summary column for (c) is amended to add the following:

Any release signed as a condition of renewal will not apply to any claims you may have under the Minnesota Franchise Act.

  1. Item 17, summary column for (f) is amended to add the following:

With respect to franchises governed by Minnesota law, we will comply with Minn. Stat. Sec. 80C.14, subds. 3, 4 and 5 which require, except in certain specified cases, that you be given 90 days' notice of termination (with 60 days to cure) and 180 days' notice for nonrenewal of the franchise agreement and that consent to transfer of the franchise will not be unreasonably withheld.

  1. Item 17, summary column for (m) is amended to add the following:

Any release signed as a condition of transfer will not apply to any claims you may have under the Minnesota Franchise Act.

  1. Item 17, summary columns for (v) and (w) are amended to add the following:

Minn. Stat. Sec. 80C.21 and Minn. Rule 2860.4400J prohibit us from requiring litigation to be conducted outside Minnesota, requiring waiver of a jury trial, or requiring the franchisee to consent to liquidated damages, termination penalties or judgment notes. In addition, nothing in this Disclosure Document or agreement can abrogate or reduce any of your rights as provided for in Minnesota Statues, Chapter 80C, or your rights to any procedure, forum, or remedies provided for by the laws of the jurisdiction.

Minn. Stat. 80C.17, subdivision 5 prohibits any action commencing section more than three years after the cause of action accrues.

No statement, questionnaire, or acknowledgment signed or agreed to by a franchisee in connection with the commencement of the franchise relationship shall have the effect of (i) waiving any claims under any applicable state franchise law, including fraud in the inducement, or (ii) disclaiming reliance on any statement made by any franchisor, franchise seller, or other person acting on behalf of the franchisor. This provision supersedes any other term of any document executed in connection with the franchise.

ADDENDUM TO DRYJECT MANAGEMENT, LLC FRANCHISE DISCLOSURE DOCUMENT REQUIRED BY THE STATE OF NEW YORK

The franchisor has represented the following:

    1. That no portion of the initial franchise fee has been allocated to the trademark or intellectual property; and
    1. That the initial franchise fee consists only of payments for initial training, advertising, manuals, uniforms and legal costs, which are distinct from and not brand or trademark related to the franchisor; and
    1. That only the royalty fee is related to the trademark and intellectual property.
    1. The following information is added to the cover page of the Franchise Disclosure Document:

INFORMATION COMPARING FRANCHISORS IS AVAILABLE. CALL THE STATE ADMINISTRATORS LISTED IN EXHIBIT A OR YOUR PUBLIC LIBRARY FOR SOURCES OF INFORMATION. REGISTRATION OF THIS FRANCHISE BY NEW YORK STATE DOES NOT MEAN THAT NEW YORK STATE RECOMMENDS IT OR HAS VERIFIED THE INFORMATION IN THIS FRANCHISE DISCLOSURE DOCUMENT. IF YOU LEARN THAT ANYTHING IN THE FRANCHISE DISCLOSURE DOCUMENT IS UNTRUE, CONTACT THE FEDERAL TRADE COMMISSION AND THE APPROPRIATE STATE OR PROVINCIAL AUTHORITY. THE FRANCHISOR MAY, IF IT CHOOSES, NEGOTIATE WITH YOU ABOUT ITEMS COVERED IN THE FRANCHISE DISCLOSURE DOCUMENT. HOWEVER, THE FRANCHISOR CANNOT USE THE NEGOTIATING PROCESS TO PREVAIL UPON A PROSPECTIVE FRANCHISEE TO ACCEPT TERMS WHICH ARE LESS FAVORABLE THAN THOSE SET FORTH IN THIS FRANCHISE DISCLOSURE DOCUMENT.

2.

Source: Item 8 — BUSINESS RELATIONSHIP (FDD pages 68–229)

What This Means (2025 FDD)

According to the 2025 Dryject FDD, the answer to where claims against Dryject that cannot be submitted to arbitration must be brought depends on the state where the franchise is located.

For franchisees in Maryland, Section 4-216(c)(25) of the Maryland Franchise Registration and Disclosure Law requires Dryject to file an irrevocable consent to be sued in Maryland. Therefore, a franchisee may bring a lawsuit in Maryland for claims arising under the Maryland Franchise Registration and Disclosure Law. Any such claims must be brought within three years after the franchise is granted.

For franchisees in Minnesota, Minn. Stat. Sec. 80C.21 and Minn. Rule 2860.4400J prohibit Dryject from requiring litigation to be conducted outside Minnesota. Additionally, the FDD states that nothing in the disclosure document or franchise agreement can abrogate or reduce any of a Franchise Owner’s rights as provided for in Minnesota Statutes, Chapter 80C, or a franchisee's rights to any procedure, forum, or remedies provided for by the laws of the jurisdiction.

For franchisees in California and Wisconsin, the FDD includes specific state riders to the franchise agreement, but these do not specify where claims against Dryject must be brought. The FDD states that Dryject reserves the right to challenge the constitutionality of any state law that declares void or unenforceable any provision contained in the Dryject Management, LLC Franchise Agreement.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.