What are the consequences if a Dryject franchisee terminates the agreement without complying with the specified requirements?
Dryject Franchise · 2025 FDDAnswer from 2025 FDD Document
- (a) If You are in compliance with this Agreement and We materially breach this Agreement and fail to cure such breach within thirty (30) days after written notice thereof is delivered to Us, then You may terminate this Agreement and the Franchised Business effective thirty (30) days after delivery to Us of notice of termination.
Notwithstanding the foregoing, if the breach is capable of being cured but is of a nature which cannot reasonably be cured within such thirty (30) day period, and We have commenced and are continuing to make good faith efforts to cure the breach, We shall be given an additional reasonable period of time to cure the breach, and this Agreement shall not terminate.
Any termination of this Agreement and the Franchised Business by You, without complying with the foregoing requirements, or for any reason other than a material breach of this Agreement by Us and Our failure to cure such material breach within the time allowed shall be deemed a termination by You without cause.
- (b) You acknowledge that the strict performance of all the terms of this Agreement is necessary not only for Our protection, but also for the protection of You and Our other franchisees.
As a result, You acknowledge and agree that the occurrence of any of the following events, each or any of which shall be considered a Material Breach default of this Agreement, constitutes reasonable grounds for termination of this Franchise Agreement by Us; provided, however that You shall be given the opportunity, within fifteen (15) days after receipt of written notice of such Material Breach, to cure the default by promptly providing proof of cure to Us.
Notwithstanding the foregoing, if the breach is curable but is of a nature which cannot reasonably be cured within such fifteen (15) day period and You have commenced and are continuing to make good faith efforts to cure the breach, You shall be given an additional reasonable period of time to cure the default, and this Agreement shall not terminate.
If any such default is not cured within the time as specified by Us, this Agreement shall terminate effective immediately without further notice to You.
Source: Item 8 — BUSINESS RELATIONSHIP (FDD pages 68–229)
What This Means (2025 FDD)
According to Dryject's 2025 Franchise Disclosure Document, a franchisee who terminates the agreement without meeting specific requirements will be considered to have terminated the agreement without cause. Specifically, if Dryject materially breaches the agreement and fails to correct the breach within 30 days after receiving written notice, the franchisee can terminate the agreement 30 days after providing Dryject with a termination notice. However, if the breach cannot be reasonably fixed within 30 days but Dryject is making good faith efforts to cure it, Dryject will be given more time, and the agreement will not terminate. Terminating the agreement without adhering to these requirements, or for any reason other than Dryject's uncured material breach, is regarded as termination without cause by the franchisee.
Dryject emphasizes that strict adherence to all terms of the agreement is essential for the protection of both Dryject and its franchisees. The occurrence of certain events is considered a material breach of the agreement, providing grounds for Dryject to terminate the agreement. However, the franchisee typically has 15 days after receiving written notice of the breach to cure the default by providing proof of the cure to Dryject. If the breach is curable but cannot be reasonably cured within 15 days, and the franchisee is making good faith efforts to cure it, an additional reasonable period will be granted. If the default remains uncured within the specified time, the agreement terminates immediately without further notice.
This means that a Dryject franchisee needs to be very careful about how and when they choose to terminate their franchise agreement. Failing to follow the proper notification and cure procedures could result in the termination being classified as 'without cause,' which could expose the franchisee to various penalties and liabilities as outlined in the franchise agreement. It is important for prospective franchisees to fully understand the termination clauses and seek legal counsel to ensure they comply with all requirements if they decide to terminate the agreement.