What constitutes a default that would prevent a Dryject franchisee from renewing their franchise agreement?
Dryject Franchise · 2025 FDDAnswer from 2025 FDD Document
You may renew the franchise to own and operate the Franchised Business and the right to use the Licensed Rights for two (2) additional successive five (5) year terms; provided that, prior to the expiration of the applicable initial or renewal term:
- (b) When such notice is given, and thereafter up to and including the date of renewal, You are not in default of any provision of this Agreement, or any other agreement between You and Us or any of Our subsidiaries or affiliates, including any other franchise agreement, and have substantially complied with the terms and conditions of all such agreements during the Term of this Agreement;
- (c) You have not received three (3) or more notices of default from Us during the then-current Term of this Agreement;
Source: Item 23 — RECEIPT (FDD pages 50–68)
What This Means (2025 FDD)
According to Dryject's 2025 Franchise Disclosure Document, several conditions must be met to renew a franchise agreement. A Dryject franchisee will not be able to renew their franchise agreement if they are in default of any provision of the agreement or any other agreement with Dryject or its subsidiaries or affiliates at the time of renewal. This includes any other franchise agreement. The franchisee must also have substantially complied with the terms and conditions of all such agreements during the term of the agreement.
Another condition that would prevent renewal is if the Dryject franchisee has received three or more notices of default from Dryject during the current term of the agreement. This indicates a pattern of non-compliance that Dryject considers grounds for denying renewal.
In practical terms, a Dryject franchisee needs to maintain good standing with the company by adhering to all contractual obligations and rectifying any issues that lead to default notices to ensure they are eligible to renew their franchise agreement. Failing to meet these conditions gives Dryject the right to deny the renewal of the franchise.