What constitutes 'proof of cure' acceptable to Dryject for a material breach?
Dryject Franchise · 2025 FDDAnswer from 2025 FDD Document
You acknowledge and agree that the occurrence of any of the following events, each or any of which shall be considered a Material Breach default of this Agreement, constitutes reasonable grounds for termination of this Franchise Agreement by Us; provided, however that You shall be given the opportunity, within fifteen (15) days after receipt of written notice of such Material Breach, to cure the default by promptly providing proof of cure to Us.
Notwithstanding the foregoing, if the breach is curable but is of a nature which cannot reasonably be cured within such fifteen (15) day period and You have commenced and are continuing to make good faith efforts to cure the breach, You shall be given an additional reasonable period of time to cure the default, and this Agreement shall not terminate.
If any such default is not cured within the time as specified by Us, this Agreement shall terminate effective immediately without further notice to You.
Source: Item 8 — BUSINESS RELATIONSHIP (FDD pages 68–229)
What This Means (2025 FDD)
The 2025 Dryject Franchise Disclosure Document (FDD) addresses the process for curing a material breach of the franchise agreement, but it does not define what specific documentation or actions Dryject would consider as 'proof of cure'.
According to the FDD, if a Dryject franchisee is in default of the franchise agreement due to a material breach, Dryject will provide written notice, and the franchisee typically has fifteen (15) days to cure the default. However, if the breach cannot reasonably be cured within fifteen days, and the franchisee has commenced and is continuing to make good faith efforts to cure the breach, Dryject will grant an additional reasonable period of time to complete the cure. If the default is not cured within the specified time, the franchise agreement will terminate immediately without further notice.
Because the FDD does not specify what constitutes acceptable 'proof of cure', prospective franchisees should seek clarification from Dryject during their due diligence. Understanding what documentation or actions Dryject requires to demonstrate that a breach has been adequately resolved is crucial. This could include financial statements, operational reports, third-party certifications, or other forms of evidence, depending on the nature of the breach. Franchisees should also inquire about the criteria Dryject uses to determine whether 'good faith efforts' are being made to cure a breach when an extended cure period is requested.