What condition has the California Commissioner imposed regarding the collection of initial fees for Dryject franchises?
Dryject Franchise · 2025 FDDAnswer from 2025 FDD Document
ADDENDUM TO THE DISCLOSURE DOCUMENT REQUIRED BY THE STATE OF CALIFORNIA
The registration of this franchise offering by the California Department of Financial Protection and Innovation does not constitute approval, recommendation, or endorsement by the commissioner.
Item 5 'Initial Fees" shall be amended by the addition of the following paragraph: 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.
Source: Item 8 — BUSINESS RELATIONSHIP (FDD pages 68–229)
What This Means (2025 FDD)
According to Dryject's 2025 Franchise Disclosure Document, the California Department of Financial Protection and Innovation has imposed a condition regarding the collection of initial franchise fees. The Commissioner has determined that Dryject has not demonstrated adequate capitalization and/or relies on franchise fees to fund its operations.
As a result, Dryject must defer the collection of all initial fees from California franchisees. This deferral lasts until Dryject has completed all of its pre-opening obligations to the franchisee, and the franchisee is open for business.
This condition protects potential franchisees in California by ensuring that Dryject fulfills its obligations before receiving the initial franchise fee. It also means that Dryject franchisees in California will not have to pay the initial franchise fee upfront, which could ease the financial burden of starting the franchise.