Who is considered a third-party beneficiary of the confidentiality and noncompetition covenants obtained by Dryject?
Dryject Franchise · 2025 FDDAnswer from 2025 FDD Document
At our request, you must obtain and deliver signed covenants of confidentiality and noncompetition from any and all people who have or may have an ownership interest in the Franchise Owner or in the Franchised Business or who receive or have access to training and other confidential information under the System. The covenants must be in a form satisfactory to us, and must provide that we are a third party beneficiary of, and have the independent right to enforce the covenants.
Source: Item 15 — OBLIGATION TO PARTICIPATE IN THE ACTUAL OPERATION OF THE FRANCHISE BUSINESS (FDD page 38)
What This Means (2025 FDD)
According to Dryject's 2025 Franchise Disclosure Document, Dryject is considered a third-party beneficiary of the confidentiality and noncompetition covenants. Specifically, Dryject requires franchisees to obtain signed covenants of confidentiality and noncompetition from individuals who have an ownership interest in the franchise or franchised business, or who have access to training and confidential information.
These covenants must be in a form that Dryject finds satisfactory. A key provision is that Dryject is explicitly identified as a third-party beneficiary. This designation grants Dryject the independent right to enforce these covenants directly.
This arrangement is designed to protect Dryject's confidential information and trade secrets by ensuring that those who have access to sensitive information are legally bound to protect it. It also allows Dryject to take direct legal action if these covenants are breached, without having to rely solely on the franchisee to enforce them.