What is the consideration for the Dryject agreement between the parties?
Dryject Franchise · 2025 FDDAnswer from 2025 FDD Document
In consideration of the respective representations, warranties, covenants and agreements contained in this Agreement, the parties agree as follows:
1. INCORPORATION OF RECITALS
The Recitals above are incorporated herein by reference.
2. GRANT OF FRANCHISE
On the terms and conditions of this Agreement, We hereby grant to You the right to establish and operate a DryJect franchise (the "Franchise" or "Franchised Business") and to use the Licensed Rights associated with the Franchised Business and developed by Us. The Franchise is granted for the area set out in the attached Addendum A to this Agreement, entitled Franchisee's Designated Territory.
7. FRANCHISEE'S PAYMENTS
(a) You shall pay to Us an Initial Franchise Fee of Twenty-Nine Thousand Five Hundred Dollars ($29,500.00), payable by a certified or cashier's check. Such Initial Franchise Fee shall be due and payable in full upon the execution of this Agreement. You understand and acknowledge that the Initial Franchise Fee is non-refundable and is fully earned by Us at the time the parties execute this Agreement.
- (b) You agree to purchase from Us all proprietary equipment required to operate the Franchised Business. As of the Effective Date, the minimum proprietary equipment requirement for the establishment of a Franchised Business consists of three (3) model 4820 DryJect machines (the "Base Equipment Package"). The purchase price for the Base Equipment Package is One Hundred Sixty Six Thousand Five Hundred Dollars ($166,500.00) and is due and payable to Us upon the earlier of: (1) commencement of the Initial Training Program described in Section 13; (2) shipment of the Base Equipment Package to You; or (3) ninety (90) days after the Effective Date. The fee for the Base Equipment Package is fully earned by Us upon the execution of this Agreement and is non-refundable.
- (c) You agree to pay to Us an Annual Royalty Service Fee of eight percent (8%) of the annual Gross Revenues generated by You in the Franchised Business or the annual total of the monthly Minimum Service Fee amounts, whichever is greater. The Annual Royalty Service Fee will be calculated using a calendar year.
Source: Item 23 — RECEIPT (FDD pages 50–68)
What This Means (2025 FDD)
According to the 2025 Dryject Franchise Disclosure Document, the agreement between Dryject Management, LLC and the franchisee involves several considerations. These include the representations, warranties, covenants, and agreements outlined within the franchise agreement. Dryject grants the franchisee the right to establish and operate a DryJect franchise within a designated territory, as specified in Addendum A of the agreement, and to utilize Dryject's Licensed Rights. The franchisee, in turn, acknowledges Dryject's exclusive rights to the DryJect Marks and agrees not to contest their validity or ownership.
As part of the agreement, the franchisee must pay an initial franchise fee of $29,500, which is non-refundable and due upon execution of the agreement. Additionally, the franchisee is required to purchase proprietary equipment from DryJect, with a minimum requirement of three model 4820 DryJect machines (the Base Equipment Package) at a cost of $166,500. This payment is due upon the earlier of commencement of the Initial Training Program, shipment of the Base Equipment Package, or 90 days after the Effective Date, and is also non-refundable.
Furthermore, the franchisee agrees to pay an Annual Royalty Service Fee of 8% of the annual Gross Revenues generated by the franchise or the annual total of the monthly Minimum Service Fee amounts, whichever is greater. These payments and obligations are essential for maintaining the uniform System Standards of quality and service and protecting the goodwill associated with the DryJect brand. The franchisee's compliance with these terms ensures their right to operate under the DryJect name and benefit from the established System and Licensed Rights.