What is the consequence of a Dryject franchisee failing to make prompt payments?
Dryject Franchise · 2025 FDDAnswer from 2025 FDD Document
ny such default is not cured within the time as specified by Us, this Agreement shall terminate effective immediately without further notice to You. You shall be in default under this Agreement for failure to comply with any of the requirements imposed by the Agreement, or for failure to carry out the terms of this Agreement in good faith. Such defaults include, but are not limited to:
(i) A failure by You to remit any payments when due under this Agreement;
(ii) A failure by You to establish, equip, maintain, or update the Franchised Business in accordance with Our System Standards;
(iii) A failure by You to submit to Us financial reports or other information required under this Agreement, or a failure to allow reasonable access to Your records within the time periods required by this Agreement;
(iv) A failure by You to operate the Franchised Business in accordance with Our Operations Manual or other manuals, or a failure by You to use products, methods, equipment or suppliers which conform to Our System Standards, or Your failure to maintain Our System Standards of quality service in the operation of the Franchised Business;
(v) A failure by You to obtain Our prior written approval or consent as expressly required by this Agreement;
Source: Item 8 — BUSINESS RELATIONSHIP (FDD pages 68–229)
What This Means (2025 FDD)
According to the 2025 Dryject FDD, failing to comply with any requirements of the Franchise Agreement, including making payments, constitutes a default. If a Dryject franchisee fails to cure a default after receiving written notice, Dryject can terminate the Franchise Agreement immediately without further notice. However, Dryject will provide an opportunity to cure the default within fifteen days of written notice. If the breach cannot be reasonably cured within fifteen days, Dryject may grant an additional reasonable period if the franchisee has commenced and continues to make good faith efforts to cure the breach.
This means that if a Dryject franchisee fails to make payments on time, they risk having their franchise agreement terminated. The franchisee will receive a notice of default and a chance to correct the situation, but if they do not act quickly and in good faith, they could lose their franchise. This is a fairly standard clause in franchise agreements, as timely payments are crucial for the franchisor to maintain the system and support its franchisees.
Prospective Dryject franchisees should be aware of this termination clause and ensure they have sufficient financial resources to meet their payment obligations. It is important to carefully review the specific terms of the Franchise Agreement regarding default and termination, and to understand the conditions under which Dryject can take action. Franchisees should also maintain open communication with Dryject if they anticipate any difficulties in making timely payments, as demonstrating good faith efforts to resolve the issue may help avoid termination.