What constitutes 'self-dealing' in the context of actions that could lead to a breach of the Dryject franchise agreement?

According to the 2025 Dryject Franchise Disclosure Document, engaging in 'self-dealing' is a serious act that can lead to a breach of the franchise agreement. Specifically, if a franchisee engages in any act that is dishonest, untrustworthy, self-dealing, or fraudulent, and if this act goes to the core of the Franchise Agreement, frustrates its main purposes, or irreparably damages the trust between the franchisee and Dryject, it can be considered a breach.

In practical terms, this means a Dryject franchisee must avoid any actions that could be perceived as disloyal or harmful to the Dryject system. This could include diverting business opportunities, misusing confidential information, or engaging in activities that directly compete with Dryject's interests. The determination of whether an act constitutes 'self-dealing' is based on Dryject's reasonable belief and the severity of the impact on the franchise relationship.

The implications for a prospective franchisee are significant. It highlights the importance of maintaining ethical business practices and upholding the integrity of the Dryject brand. Franchisees must be transparent and avoid any conflicts of interest that could jeopardize their relationship with Dryject. This clause underscores the high level of trust and good faith expected from franchisees in operating their businesses.

While the FDD excerpt defines 'self-dealing' in broad terms, it does not provide specific examples of what might constitute such behavior. A prospective franchisee should seek clarification from Dryject regarding specific scenarios that could be considered 'self-dealing' to ensure full compliance and avoid any unintentional breaches of the franchise agreement.