What is the consequence if a DryJect franchisee business entity fails to deliver photocopies of certificates and stocks?
Dryject Franchise · 2025 FDDAnswer from 2025 FDD Document
- (viii) You shall not issue any additional stock, membership, or interests in You and no individual with ownership interest in You shall transfer, assign or pledge any ownership interest in You without Our prior written consent, which shall not be unreasonably withheld, and a legend setting forth such restriction on transfers shall be contained in the business entity's organizational and governing documents and other appropriate documents such as certificates and stocks. In giving Our consent, We shall have the right
Source: Item 8 — BUSINESS RELATIONSHIP (FDD pages 68–229)
What This Means (2025 FDD)
According to DryJect's 2025 Franchise Disclosure Document, if a franchisee is a business entity, they are not allowed to issue additional stock, membership, or interests in the entity, nor can any individual with ownership interest transfer, assign, or pledge their ownership without DryJect's prior written consent. This consent will not be unreasonably withheld.
The franchise agreement stipulates that a legend setting forth such restriction on transfers must be included in the business entity's organizational and governing documents, as well as other appropriate documents like certificates and stocks. The franchisee must provide photocopies of these documents to DryJect.
The FDD does not explicitly state the consequences of failing to provide these photocopies. However, failure to comply with the terms of the franchise agreement could potentially lead to a breach of contract. This could give DryJect grounds to pursue legal remedies, including financial penalties or even termination of the franchise agreement. Prospective franchisees should seek clarification from DryJect regarding the specific ramifications of non-compliance.