What is the dependency between the Dryject franchisee's failure to cure a default and the termination of the agreement?
Dryject Franchise · 2025 FDDAnswer from 2025 FDD Document
As a result, 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.
You shall be in default under this Agreement for failure to comply with any of the requirements imposed by the Agreement, or for failure to carry out the terms of this Agreement in good faith.
Such defaults include, but are not limited to:
(i) A failure by You to remit any payments when due under this Agreement;
(ii) A failure by You to establish, equip, maintain, or update the Franchised Business in accordance with Our System Standards;
(iii) A failure by You to submit to Us financial reports or other information required under this Agreement, or a failure to allow reasonable access to Your records within the time periods required by this Agreement;
(iv) A failure by You to operate the Franchised Business in accordance with Our Operations Manual or other manuals, or a failure by You to use products, methods, equipment or suppliers which conform to Our System Standards, or Your failure to maintain Our System Standards of quality service in the operation of the Franchised Business;
(v) A failure by You to obtain Our prior written approval or consent as expressly required by this Agreement;
(vi) A failure by You to accurately or completely record all sales made in, upon or from the Franchised Business at the time of sale;
(vii) A breach by You of any other covenant, term, or provision of this Agreement;
(viii) A failure by You to open the Franchised Business within one hundred and eighty (180) days of the execution of this Agreement;
(ix) A failure by You to comply with any of Your agreements with any third parties as related to the Franchised Business; or,
(x) A failure by You to consistently pay the debts of the Franchised Business as they become due.
(c) In the event You are delivered two (2) or more notices of Material Breach from Us within a twelve (12) month period pertaining to any one (1) or more of the foregoing events of default whether or not cured after notice, during the initial Term or any renewal terms of this Agreement, We shall have the right to terminate this Agreement.
The effective date of any such termination notice under this Subsection shall be upon the expiration of Your receipt of three (3) days written notice to that effect, or such longer period as may be required by law.
Source: Item 8 — BUSINESS RELATIONSHIP (FDD pages 68–229)
What This Means (2025 FDD)
According to the 2025 Dryject Franchise Disclosure Document, the franchise agreement can be terminated if a franchisee fails to cure a default. Specifically, if a franchisee commits a 'Material Breach' of the agreement, Dryject will provide written notice, and the franchisee typically has fifteen days to resolve the issue. However, if the breach cannot reasonably be fixed within fifteen days, and the franchisee is making a good faith effort to cure it, Dryject may grant an additional reasonable period to remedy the default. If the franchisee fails to cure the default within the specified time frame, the agreement can be terminated immediately without further notice.
Several actions can trigger a default under the Dryject franchise agreement. These include failing to make payments, not maintaining the business according to Dryject's standards, neglecting to submit financial reports, or not operating the business according to the operations manual. Other defaults include failing to obtain prior written approval when required, inaccurately recording sales, breaching any term of the agreement, failing to open the business on time, not complying with agreements with third parties, or failing to pay debts as they become due.
Furthermore, if Dryject delivers two or more notices of Material Breach within a twelve-month period, regardless of whether the franchisee cured the breaches after the initial notice, Dryject has the right to terminate the agreement. The termination becomes effective three days after the franchisee receives written notice, or longer if required by law. This highlights the importance of consistent compliance with the franchise agreement to avoid potential termination.