What is the condition for existing stockholders or partners to sell, assign, or transfer securities of the Dryject franchisee?
Dryject Franchise · 2025 FDDAnswer from 2025 FDD Document
- (b) In the event You or Your successor is not an individual, You agree and acknowledge as follows:
- (i) The Articles of Incorporation (or other corporate charter pursuant to which You were formed) and the Bylaws or Operating Agreement (or regulations or other instrument for the governance of the entity), or the Partnership Agreement, or other instruments pursuant to which You were created, reflects that the issuance and transfer of voting stock or other ownership interest therein ("securities") is restricted by the terms of this Agreement. You shall furnish Us at the time of execution of this Agreement or of assignment to the corporation, limited liability company, partnership or other entity, an agreement executed by all stockholders, partners, members and other owners of any equity interest in You, stating that none of such entities will sell, assign or transfer voluntarily or by operation of law any securities of Franchisee to any other entity, other than existing stockholders or partners to the extent permitted hereunder, without Our prior written consent. All securities issued by You will bear a legend in substantially the following form, which shall be printed legibly and conspicuously thereon:
Source: Item 8 — BUSINESS RELATIONSHIP (FDD pages 68–229)
What This Means (2025 FDD)
According to Dryject's 2025 Franchise Disclosure Document, if the franchisee is not an individual, the issuance and transfer of voting stock or other ownership interest is restricted by the terms of the Franchise Agreement. Dryject requires that the organizational documents of the franchisee reflect these restrictions.
Dryject requires an agreement executed by all stockholders, partners, members, and other owners of any equity interest in the franchisee. This agreement must state that none of these entities will sell, assign, or transfer any securities of the franchisee to any other entity, except to existing stockholders or partners to the extent permitted under the Franchise Agreement, without Dryject's prior written consent.
All securities issued by the franchisee must bear a legend indicating this restriction on transfer. This ensures that any potential future buyers are aware of the limitations on their ability to transfer ownership. This requirement aims to maintain control over who becomes involved in the Dryject franchise system and to ensure that all owners are approved by Dryject.