What is considered a 'Competitive Business' in relation to a Dryject franchise?
Dryject Franchise · 2025 FDDAnswer from 2025 FDD Document
(ii) own, manage, maintain, operate, engage in, advise, consult with, invest in, be employed by or perform services as a director, officer, manager, representative, agent, or otherwise, or have any direct or indirect interest in any business that (a) specializes, in whole or in part, in offering to the public substantially similar products and/or services to those products and/or services offered by Your Franchised Business prior to the termination or expiration of this Agreement within a fifty (50) mile radius of any other franchisee's franchised business or any Franchisor-owned or affiliate-owned DryJect business (a "Competitive Business") or (b) grants franchises or licenses to others to operate a Competitive Business.
(b) At any time, during the Term of this Agreement or thereafter, You shall not, either directly or indirectly, for You, or through, on behalf of, or in conjunction with any person, persons, partnership, corporation or other business entity, use, in connection with the operation of any business other than the Franchised Business, any of the Licensed Rights, or any other names, marks, systems, insignias, or symbols provided or approved by Us to You pursuant to this Agreement, or cause or permit any such business to look like, copy or imitate a DryJect Franchised Business or to be operated in a manner tending to have such effect.
(c) You expressly acknowledge that You possess skills and abilities of a general nature and have other opportunities for exploiting such skills.
Consequently, You acknowledge that enforcement of the covenants made in this Section will not deprive You of Your personal goodwill or ability to earn a living.
- (d) It is the express intention of the parties to this Agreement to comply with all laws applicable to the covenants contained in this Agreement.
If any of the covenants contained in this Section are found to exceed in duration, geography or scope those permitted by applicable law, the parties expressly agree that such restrictive covenant may be reformed or modified by the final judgment of a court of competent jurisdiction or other lawful constituted authority to reflect a lawful and enforceable restriction, whether in duration, geography or scope, and that the covenants contained in this Section shall automatically be deemed to be amended and modified so as to comply with the judgment or order of such court or authority to the maximum extent permitted.
Source: Item 8 — BUSINESS RELATIONSHIP (FDD pages 68–229)
What This Means (2025 FDD)
According to the 2025 Dryject Franchise Disclosure Document, a 'Competitive Business' is defined as any business that specializes in offering substantially similar products and/or services to those offered by a Dryject franchise. This definition applies if the business operates within a fifty (50) mile radius of any other franchisee's Dryject business or any Dryject business owned by the franchisor or its affiliates.
This restriction is in place both during the term of the Franchise Agreement and after its termination or expiration. The franchisee is prohibited from owning, managing, operating, or investing in any such Competitive Business. This includes being employed by or performing services for a Competitive Business in any capacity, such as a director, officer, manager, representative, or agent. The restriction also extends to granting franchises or licenses to others to operate a Competitive Business.
Dryject also restricts franchisees from using any of the Licensed Rights, names, marks, systems, insignias, or symbols associated with the Dryject brand in connection with any business other than the franchised Dryject business. Franchisees are not allowed to operate a business that looks like, copies, or imitates a Dryject franchise. These restrictions are designed to protect Dryject's market position and overall image, as well as its trade secrets and operating procedures.
These covenants are acknowledged by Dryject to not deprive the franchisee of their personal goodwill or ability to earn a living. The agreement also states that if any of these covenants are found to exceed what is permitted by applicable law, they may be reformed or modified by a court to reflect a lawful and enforceable restriction.