What constitutes a material breach of the Dryject franchise agreement that cannot be cured?
Dryject Franchise · 2025 FDDAnswer from 2025 FDD Document
(xii) Fail to maintain an independent contractor relationship with Us;
(xiii) Commit a default under any loan or lease required to operate the Franchised Business and fail to cure that default by the date specified by the lender or lessor;
(xiv) Create or allow the continuation of any condition in or at the Franchised Business, or on or about the Franchised Business' premises, which We reasonably believe presents health and/or safety concerns for the Franchised Business' customers or employees;
(xv) Engage in any act(s) that is so dishonest, untrustworthy, self-dealing, and/or fraudulent, that it goes to the essence of the Franchise Agreement and/or frustrates one of the principal purposes of the Franchise Agreement and/or irreparably damages the trust between Us and You;
(xvi) Commit a material breach that cannot be cured; or,
(xvii) If, without Our prior written consent, You or persons controlling, controlled by, or under common control with You shall have any interest, direct or indirect, in the ownership or operation of any business engaged in the sale of similar or other related products or services within Your Designated Territory, or in any business, regardless of where located, that looks like, copies, or imitates any DryJect business, or operates in a manner tending to have such effect.
(e) Notwithstanding the foregoing provisions of this Section, You shall be in breach under this Agreement and all rights granted under this Agreement will automatically terminate without notice to You, if You do any of the following:
(i) Make an assignment for the benefit of creditors or an admission of Your inability to pay Your obligations as they become due; or,
(ii) File a voluntary petition in bankruptcy or any pleading seeking any reorganization, arrangement, composition, adjustment, liquidation, dissolution or similar release under any law, or admit or fail to contest the material allegations of any such pleading or action for the benefits of creditors filed against You, or are adjudicated bankrupt or insolvent, or a receiver is appointed for a substantial part of Your assets or the assets of the Franchised Business, or the claims of Your creditors or the creditors of the Franchised Business are abated or subject to moratorium under any laws.
Source: Item 8 — BUSINESS RELATIONSHIP (FDD pages 68–229)
What This Means (2025 FDD)
According to the 2025 Dryject FDD, a material breach of the franchise agreement that cannot be cured is grounds for termination of the agreement by Dryject.
The FDD lists several actions that constitute a breach of the agreement. These include failing to maintain an independent contractor relationship with Dryject, defaulting on any loan or lease required to operate the franchised business without curing the default by the lender's specified date, creating or allowing conditions at the franchised business that present health or safety concerns, or engaging in dishonest, untrustworthy, self-dealing, or fraudulent acts that damage the trust between Dryject and the franchisee or frustrate the agreement's purpose.
Additionally, a material breach that cannot be cured, or having an interest in a business selling similar products or services within the franchisee's designated territory without Dryject's prior written consent, also constitutes a breach. The franchise agreement will automatically terminate without notice if the franchisee makes an assignment for the benefit of creditors, admits inability to pay obligations, files for bankruptcy, or has a receiver appointed for a substantial part of their assets.