Will Dryject compensate a franchisee for soliciting or accepting business in their Designated Territory?
Dryject Franchise · 2025 FDDAnswer from 2025 FDD Document
We will not compensate you for any of our activities including soliciting or accepting business in your Designated Territory, even if they have an impact on your Franchised Business.
We reserve the right to negotiate and contract at discounted rates for the sale of System products and services to customers operating multiple facilities, some of which may be located within the Designated Territory ("Reserved Accounts"). We may use any method, including the Internet, or other direct marketing to develop this business. Franchise Owners will be provided the first opportunity to service facilities operated by Reserved Accounts within their Designated Territory. In the event that a Franchise Owner does not agree to provide a Reserved Account with the contracted goods or services for a facility operated within their Designated Territory at the discounted rate, we, any of our affiliates or another Franchise Owner may supply the goods or services for the Reserved Account, and you will not be entitled to receive any fee or other compensation associated with the transaction.
Source: Item 12 — TERRITORY (FDD pages 33–34)
What This Means (2025 FDD)
According to Dryject's 2025 Franchise Disclosure Document, Dryject will not compensate a franchisee for activities such as soliciting or accepting business within the franchisee's Designated Territory, even if these activities impact the franchisee's business. This means that Dryject retains the right to operate or grant franchises for similar businesses under different names or offering different services within or outside the franchisee's territory without providing any compensation.
Dryject also reserves the right to negotiate and contract at discounted rates with customers operating multiple facilities, some of which may be located within a franchisee's Designated Territory. These are considered "Reserved Accounts." While franchisees have the first opportunity to service these facilities at the discounted rate, if they decline, Dryject or another franchisee may provide the services, and the original franchisee will not receive any compensation from that transaction.
This policy has significant implications for prospective Dryject franchisees. It highlights the potential for competition from the franchisor itself and other franchisees, as well as the risk of losing business to Reserved Accounts without compensation. This is not uncommon in the franchise industry, as franchisors often retain the flexibility to manage large accounts and expand their brand presence, but it does place a greater emphasis on the franchisee's ability to compete effectively and maintain strong customer relationships within their territory.