What conditions must be met for Dryject to approve a transfer of a Dryject franchise?
Dryject Franchise · 2025 FDDAnswer from 2025 FDD Document
- (c) You acknowledge and agree that the restrictions on transfer imposed herein are reasonable and are necessary to protect Our Franchise System; Our trade secrets and operating procedures; Our general high reputation and image; the Licensed Rights; as well as You and Our other DryJect franchisees. Any assignment or transfer permitted by this Agreement shall not be effective until We receive a completely executed copy of all transfer documents and consent to such transfer in writing. Under no circumstances will You have a right to transfer under this Agreement before the Franchised Business has commenced operations.
- (d) Your performance is of vital importance to the market position and Our overall image, and there are many subjective factors that comprise the process by which We select a suitable franchisee. Our consent to a transfer or assignment by You of the Franchise and Franchised Business shall, in addition to the other restrictions and requirements herein noted, remain a
subjective determination and shall consider, but not be limited to, whether:
(i) All obligations of Yours under this Agreement and all other franchise documents, and the relationship created under those agreements are being assumed by the transferee;
(ii) All ascertained debts of Yours to Us and Our affiliates have been paid;
(iii) You, at the time of the request to transfer and as of the date of transfer, are not in default under this Agreement or any other franchise agreement;
(iv) Except for other DryJect franchisees, the proposed transferee does not operate or participate in an entity that operates a franchise, license, or other business offering products and/or services similar to those offered by the Franchised Business;
(v) The proposed transferee meets all of Our requirements for new franchisees, including, but not limited to, good reputation and character, experience, business acumen, operational ability, financial strength and stability, willingness and ability to devote full time and best efforts to the operation of the Franchised Business and other business considerations as We may reasonably apply in evaluating new franchisees.
We must be provided all information about the proposed transferee as We may reasonably require;
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 39–41)
What This Means (2025 FDD)
According to the 2025 Dryject Franchise Disclosure Document, Dryject has specific requirements that must be met before they will approve a franchise transfer. Dryject must receive a fully executed copy of all transfer documents and provide written consent to the transfer. A transfer cannot occur until the Dryject franchise has commenced operations.
Dryject's consent to a transfer is a subjective determination, considering several factors. These factors include the transferee assuming all of the obligations of the existing franchisee under the franchise agreement and related documents. All debts owed to Dryject and its affiliates by the current franchisee must be paid. The current franchisee must not be in default of the franchise agreement or any other franchise agreement at the time of the transfer request and on the date of the transfer.
The proposed transferee, with the exception of other Dryject franchisees, must not operate or participate in a business offering similar products or services. The proposed transferee must meet all of Dryject's requirements for new franchisees. These requirements include good reputation and character, experience, business acumen, operational ability, financial strength and stability, and the willingness and ability to devote full time and best efforts to the operation of the Dryject franchise. Dryject also requires all information about the proposed transferee that it may reasonably require.
These conditions are typical in franchising, as franchisors like Dryject need to ensure that any new franchisee meets their standards and will maintain the brand's reputation and the integrity of the franchise system. Prospective Dryject franchisees should carefully review these transfer requirements to understand the process and criteria involved in transferring their franchise in the future.